Patrick Gallagher of the Gallagher Building Group has told the Moriarty Tribunal that Mr Haughey told him he needed £750,000 to discharge his debts after he became Taoiseach in 1979. Mr Gallagher said that after discussing the matter with his brother, they agreed to give £300,000 but wanted to get something tangible in return.
Appearing before the Tribunal for the first time, Patrick Gallagher spoke of the awe in which he held Charles Haughey. He knew him from his childhood and, when his father died, 23-year-old Patrick Gallagher, now head of the Gallagher Group, told Charles Haughey he would continue to support him with political donations as his family had done. Between 1974 and 1979 he gave him £15,000 in cash. The money was usually given each year in sums of £3,000 a time.
In 1979 when Charles Haughey became Taoiseach and leader of Fianna Fáil, Patrick Gallagher was invited to attend a celebration party in Kinsealy. The following Sunday evening he was having a pint with his brother Paul when he was told Charles Haughey was looking for him. Both brothers went to Abbeville. Paul stayed outside while Patrick met with Charles Haughey in the study. Mr Haughey said that now he was Taoiseach he would have to tidy up his financial affairs. He said it was urgent. Patrick Gallagher asked what the bottom line was, and he was told £600,000. He went out and told his brother Paul and they agreed to advance £300,000. However, Mr Gallagher told Charles Haughey he wanted "something tangible in return. "
Patrick Gallagher said the lands at Kinsealy were an attractive prospect. He also agreed that Charles Haughey would never have agreed to sell them if he had any other alternative. A deal was worked out with Des Traynor to acquire 35 acres of the Feltrim lands at Kinsealy at £35,000 an acre. Mr Gallagher said that until two days ago he had no idea that the 7 paragraphs drawn would be virtually impossible to impose legally. He said he felt it was a bonafide deal and he never considered that Charles Haughey or Des Traynor would abuse his trust in anyway.
Patrick Gallagher said he felt this was a good deal, even though the lands were zoned as agricultural. He said he regarded this as a matter of honour. He felt good that he was helping an old family friend in a predicament and getting the lands as well. He said it was a long-term strategy by Gallaghers of building up a “land bank”. The contract was not due to expire until 1986 and no attempt was made by anyone in the Group to close the deal before the company collapsed in 1982.
The tribunal also heard how Charles Haughey was concerned that the lands involved included a stud farm built up by his daughter Eimear, therefore the Gallaghers agreed to build another stud farm somewhere in north County Dublin using their existing land bank. Patrick Gallagher said this was not a problem and "he knew Charles Haughey’s tastes."
