Richard Bruton (Dublin North Central, Fine Gael)
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Question 128: To ask the Minister for Communications, Marine and Natural Resources the earliest profit projections made by An Post and the final actual outturn on profits by the company for each of the past five years; the reason for the apparently sudden deterioration in the financial prospects of the company; if strategic errors were made by management in anticipating trends in the business which might have allowed better performance; and if he will make a statement on the matter. [37468/05]

Noel Dempsey (Meath, Fianna Fail)
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The final actual outturn on profits by the company for the last five years are in 1999 operational profits of €9.8 million, in 2000 operational profits of €13.3 million, in 2001 losses of €6.7 million, in 2002 losses of €17.4 million, in 2003 losses of €42.9 million and due mainly to the policy of controlled financial management in line with the recovery strategy, and the non payment of Sustaining Progress, operating profits of €1.8 million in 2004.

The reality is that the company has suffered significant losses in recent years starting with €6.7 million in 2001 and then reaching an unsustainable level of €42.9 million in 2003. The deterioration of company finances did not happen overnight but over a number of years. The downturn in An Post's financial position has been attributed to inflated forecasts of growth and the inability to deliver on change management programmes such as automation. Between 2001 and 2002 payroll costs alone increased by €40 million and the main divisions in An Post, Letterpost, SDS and the post office were all operating at a loss in 2001 and 2002.

It was against this background that the then Minister for Communications, Marine and Natural Resources expressed serious concern about the situation in the company and asked for a recovery strategy. The company presented a recovery strategy to the then Minister in September 2003. The detail and implementation of this recovery strategy which involves reductions in staff numbers and changes in work practices has formed the basis for the negotiations between the company and unions which have spanned the last two years. With the acceptance by the An Post board of the Labour Court recommendations which issued last week and the backing of the recommendations by the CWU executive committee in advance of the ballot of the union's members, I am hopeful that the company with the support of its workers, will implement the changes necessary to see An Post continue as a serious player in the Irish postal market delivering high quality postal services to customers.

Bernard Durkan (Kildare North, Fine Gael)
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Question 129: To ask the Minister for Communications, Marine and Natural Resources if and when the tender for postcodes has or will be awarded; and if he will make a statement on the matter. [37487/05]

Noel Dempsey (Meath, Fianna Fail)
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I have no function as regards this matter as the Commission for Communications Regulation is responsible for the appointment of the economic and technical consultants with regard to the postcode project. Following on from the recommendations of the working group report, consideration of the feasibility, design and implementation of a practical postcode project proposal is being advanced. In accordance with the recommendation of the working group, that project managers be appointed to lead the postcode project, I have asked that the Commission for Communications Regulation appoint them.