A former director of Century Radio, James Stafford, has told lawyers for the Flood Tribunal that he was told by fellow director Oliver Barry that they would have to pay thousands of pounds to Ray Burke and PJ Mara for television and radio licences. The Tribunal has heard that Mr Burke and Mr Mara, who is a former government press secretary, will hotly contest the allegation. The Tribunal is investigating whether a cash payment of £35,000 that Oliver Barry gave to Ray Burke in the late 1980's when he was Minister for Communications was corrupt.
Patrick Hanratty for the Tribunal spent all day today mapping out the parameters of what promises to be a very close scrutiny of Ray Burke's actions when he was Minister for Communications. James Stafford will give evidence, he said, that at the time that Century Radio was applying for its licence Oliver Barry told him that a national television licence could be secured for £90,000, a local radio licence would cost £50,000. Both PJ Mara and Ray Burke have denied the claims, Mr Burke points out that he had no responsibility for the granting of licences.
According to Mr Stafford, Oliver Barry told him that PJ Mara asked him for money. Mr Stafford also said that on two occasions, one of which was at Conor Haughey's wedding, the businessman Dermot Desmond told him that money was owed to PJ Mara and that they should pay it. In his written evidence to the Tribunal, Mr Stafford has said that no money was paid. The Tribunal has highlighted a number of controversial decisions and proposals made by Ray Burke around the time he received the £35,000 payment. Some were of considerable benefit to Century, others appear to have come out of the blue.
During the afternoon session, the Tribunal heard more details about these controversial decisions relating to the shortlived commercial national radio station. Continuing his opening statement, Patrick Hanratty explained how Century Radio went on air in September of 1989. Just three months later, he said, the financial stormclouds were gathering and the station was having difficulty getting advertisers. In November, Century wrote to its solicitors looking for legal advice on the possibility of capping RTÉ's advertising revenue. They got a detailed response. Then they contacted Ray Burke.
There were two meetings on November 19 between Ray Burke and two of Century's directors, Oliver Barry and James Stafford. The Secretary of Mr Burke's department attended the second meeting at which Ray Burke gave an undertaking to the two men that he would cap RTÉ's advertising revenue by 50%. He also told a Bank of Ireland deputation of his intention. The bank had lent money to Century and now wanted it back. In 1989, Mr Burke fixed the amount which RTÉ could charge Century for transmission rights. This was a controversial decision at the time. The Minister also proposed that part of RTÉ's licence fee be distributed among commercial operators, such as Century. But this was rejected.
Earlier Patrick Hanratty said it appeared that the IRTC may have been mislead by Century Communications. They had failed to disclose that John Mulhearne, Charles Haughey's son-in-law, was also an investor on a par with Oliver Barry and James Stafford. He also outlined detailed discussions that Oliver Barry and other directors had with Gay Byrne with a view to setting up a national radio station. The discussions took place at a time when there was no proposal for a national radio station. Gay Byrne later opted out of the plan and decided to stay with RTÉ.
