The Mahon Tribunal has heard that rumours the late Charles Haughey had an interest in the Baldoyle Racecourse lands had thwarted rezoning attempts.
The tribunal is enquiring why Kerry developer John Byrne tried to hide his involvement in attempts to get 400 acres in north Dublin rezoned.
Today his solicitor John Gore Grimes said this was because of an 'untruth perpetuated in the media' during the 1980s that Mr Haughey had an interest in the lands.
Mr Gore Grimes said in those days planning was more 'political' than it is today and after a number of planning applications both he and Mr Byrne came to the conclusion that he was not going to get planning permission from Dublin County Council.
He said that is why Mr Byrne decided in 1990/1991 to 'move sideways' and absolve himself of all responsibility of applying for planning permission.
Mr Gore Grimes said Mr Byrne sold an option on the lands for £30,000 an acre, which may seem ludicrous now but was a nice sum at the time.
He said Mr Haughey was not involved in the lands but 'people simply got it into their minds and that untruth could not be shifted'.