Counsel for the former minister for communications, Mr Ray Burke, has described as "illogical and untrue" an allegation that he and the former Fianna Fail press secretary, Mr P.J. Mara, were operating a "price list" for broadcasting licences.
The allegation, made at the tribunal by the co-founder of Century Radio, Mr James Stafford, was "illogical" in that it was the Independent Radio and Television Commission which awarded radio licences, not the minister, Mr Burke's counsel said.
Mr Aidan Walsh SC said it was also "insulting" to the chairman of the IRTC, Mr Justice Henchy, and other commission members. Mr Burke had never heard of such a rumour, he said.
Mr Stafford agreed the IRTC members were all of "unimpeachable character" but he believed the rumour was "in circulation" and he heard it again later, after first hearing it from the other co-founder of Century, Mr Oliver Barry.
Mr Walsh pointed out that Mr Michael O'Keeffe, who had worked with the IRTC from its establishment, had told the tribunal: "I do not believe it could have been possible to manipulate the process [of awarding radio licences] in such a fashion."
Before Mr Burke was appointed minister for communications in March 1987, the prevalence of pirate broadcasters was a problem, Mr Walsh said. The previous coalition government had not acted or enforced the existing legislation. ail. He said Mr Burke had received widespread political and media praise for bringing in legislation to set up an independent body, the IRTC, to award licences in 1988.
A suggestion by Mr Walsh that Mr Burke had a legal obligation to implement legislation to cap RTE's advertising income - which would have benefited Century and other commercial broadcasters - and had consulted the Attorney General on ways of achieving this drew an immediate response.
Mr Pat Hanratty SC, for the tribunal, said: "This is complete news to the tribunal." The tribunal had not once come across evidence for such a suggestion, he said.
Mr Justice Flood said if Mr Walsh was making this case he wanted to see whatever documents there were to support it. Mr Walsh said he was not suggesting a decision to introduce a cap had been made in advance of the Minister's meeting with Century.
Mr Hanratty said there was no official record of the Minister's two meetings with Century on December 19th, 1989, at which Mr Stafford called on the Minister to impose a cap. The first official record of the decision to impose a cap came in a letter written by an official the following January.
The tribunal adjourned until next week a claim by Mr Barry for privilege over certain documents.
