Ray Burke has said at the Flood Tribunal that there was no question of doing Century Radio a favour by introducing a cap on RTÉ's advertising revenue. However, he agreed that there were no formal complaints about predatory pricing by RTÉ when he decided to introduce the cap in 1989. Mr Burke is being questioned about the decision which cut RTÉ's income by millions of pounds. He agreed that there was only anecdotal information available that RTÉ was abusing its dominant position in the advertising market.
Tribunal lawyers have said that there was no evidence of predatory pricing. Pat Hanratty, Senior Counsel for the Tribunal, said that in fact RTÉ's prices had risen each year. Records also show that previous attempts by national newspapers to have a cap imposed were unsuccessful. Mr Burke said that the capping decision was triggered by Century Radio who were threatening to close. However, he said that it was not his personal decision, but it was approved by the Government.
It was also put to him that he had told Century's bankers about the cap before it was brought to the Government. He said that he merely told the bankers of his support for the independent sector and could not have told them of any firm commitment. The Tribunal heard that on 19 December last, Mr Burke met with Oliver Barry and James Stafford twice. He told a civil servant in their presence to prepare a directive or legislation to cap RTÉ's advertising revenue.
