Businessman Mr Paschal Taggart has told the tribunal how he fronted a secret application by Century Radio for a Dublin radio licence, in breach of regulations requiring the disclosure of all investors.
Mr Taggart said he was aware of the requirement by the Independent Radio and Television Commission that all investors in an application for a licence be identified. He was "not naive" about the reasons for the nondisclosure. Mr Oliver Barry, a cofounder of Century, made the decision.
Century was an applicant for the national radio station in 1988 but also decided to apply for a licence in Dublin. It commissioned Mr Taggart to draw up a business plan and file an application, in the name of Dublin One Radio Ltd.
Mr James Stafford of Century has told the tribunal his involvement in the Dublin application was not disclosed because it might affect its chances of getting the national franchise.
Mr Taggart said yesterday Mr Barry asked him in late 1988 to front an application for a Dublin licence. Mr Barry, Mr Stafford and broadcaster Terry Wogan were involved. Mr John Mulhern was also an investor, but Mr Taggart said he was never made aware of this.
Mr Taggart enlisted the services of Mr Peter Owens, an advertising expert, and his friend Mr Kevin Heffernan, the former Dublin GAA manager, who had experience of personnel matters.
Mr Barry and his backers took an 85 per cent stake, Mr Taggart took 10 per cent and Mr Heffernan 5 per cent. Initial funding for the application came to £125,000.
However, Mr Barry was "not at all happy" with Mr Taggart's financial projections, which estimated running costs at £1.25 million. He thought it was "grossly overstated". Mr Barry criticised the figures but did not put forward an alternative, the witness said. "We were on a collision course almost from the moment the figures came out."
Mr Taggart said Mr Barry was putting forward a figure of £500,000 for running costs. "I couldn't believe anyone could put forward a figure of £500,000 to start a radio station in any shape or form. "He wasn't up to speed on the cost of running a Dublin radio station, so I wasn't surprised he didn't get it right for the national station."
In January 1989, Mr Taggart signed a document, the effect of which prevented him from submitting any application without the approval of Mr Barry and Mr Stafford. Effectively, the two men could stymie any progress if they so desired, the witness said.
However, Mr Taggart said this was "an absolutely useless document" because he had already decided at this stage not to proceed with the application. Subsequently, he tried to recoup £56,000 in costs, but Mr Barry said they were "far too high".
Mr Taggart said he had never been approached to pay money for a licence. He was not aware of rumours that money was being sought for licences.
