asked the Minister for Communications if he will outline the financial allocation made to An Post by him for current and capital expenditure since the vesting date in January, 1984.

A grant of £5 million was paid to An Post in December 1984 for current expenditure purposes. An allocation of £4 million, in the form of Exchequer equity, was also paid to the company in December 1985 as a contribution towards the capital expenditure programme of An Post for last year.

Can the Minister indicate whether a capital allocation has been made for the sorting office project in Cork? Is the Minister aware if there is a capital allocation to be made?

That is a separate question. If the Deputy tables such a question and if it is in order, I will be delighted to answer it.

Is it proposed to make a capital allocation to An Post in 1986 for the development of post office buildings and sorting offices?

No provision is made in the current year. I am glad to report that An Post have a very good equity ratio and that it is well within their capabilities to borrow such funds as are necessary for their investment. I hope to fund that borrowing.

Is the Minister aware that in the annual report of An Post, dated 31 December 1985, their chairman stated that they were looking for a £3 million capital payment for 1986? The Minister has reneged on the postal telecommunications legislation which allows for a total capital investment of £50 million.

I am glad of the opportunity to clarify that. Deputy Leyden was Minister of State at my Department at the time. When the figures for the total capital investment were provided for it was in keeping with the normal practice for semi-State companies. This House from time to time is asked to fix ceilings on the amount of money which can be invested in semi-State companies. That does not imply any commitment to invest that money either immediately or at any time in the future. It is purely an enabling provision. For instance, we are voting today on the B & I Bill. In that case the amount is £38 million. That does not mean we are giving the B & I £38 million or anything like it this year. There has been much play made about that and unfounded expectations have resulted from the misunderstanding. There was never any intention that I know of to invest £50 million immediately in An Post. It is purely an enabling provision.

In relation to the first part of the Deputy's question, An Post have recently put proposals to me regarding investment in the next few years. Those proposals are being considered in my Department at present.

Has the document, Building on Reality, any credibility? In that document a sum of £3 million was promised in 1986. Is Building on Reality now dead and gone?

That is another question.

The answer is that there were figures set out in the plan. Plans have to be revised, in some cases upwards and in others downwards and have to be changed in the light of events. Substantially, the proposals, in Building on Reality are extant and very successful.

They are dead.

Short supplementaries, please, as I am trying to accommodate everybody.

The Minister said my question was a separate question but since then he has indicated no financial allocations have been made for this year. Is he confirming by that statement that there has been no capital allocation made for the sorting office in Cork?

What I am saying is that there are no Exchequer funds being provided for capital purposes this year. It is within An Post's ability to borrow for such capital purposes. As I said, they have a very healthy equity base and are in a good position to borrow for their capital needs.

Will An Post be handling the national lottery and, if so——

That is a separate question.

It is not.

It is to date, anyway.

Will this involve capital expenditure in 1986 for computerisation or any other purpose?

It is a separate question in so far as the Minister responsible for the national lottery is the Minister for Finance. I understand that the Bill providing for the national lottery will be circulated imminently, perhaps, today.

It has been circulated. There was no mention of An Post.

An Post or a subsidiary of An Post will be running the lottery.

Will this involve capital expenditure in 1986?

I do not have that information off hand. As I say, the lottery is a matter for the Department of Finance. Therefore, I will ask my colleagues to let Deputy Wilson have the necessary information.

I am allowing the final question to Deputy Brennan.

With regard to the Minister's reference to the excellent borrowing capacity of An Post, is it his intention to fully guarantee all of that borrowing and, in his opinion, given An Post's present rate of progress and level of profitability, in approximately what year would he expect them to be standing alone as a semi-State company?

I will be disappointed if An Post do not break even this year. I think they will. They may make a small profit this year. Certainly by next year I expect that An Post will be profitable. I have every confidence that they will be in a position to stand on their own feet. Everyone would agree that the company, since they were vested, have shown particular flair and imagination for which everyone in An Post deserve credit. I am glad to be able to report to the House that they are one of those companies who can stand alone and who do not need to be bailed out by the taxpayer.