Auctioneer recalls invite from' strong FF supporter'

An estate agent and auctioneer has told the Mahon tribunal that one of the members of a business consortium which owned land in north Dublin that is currently under investigation was a strong supporter of Fianna Fáil and had taken a table at a party fund-raising dinner attended by Bertie Ahern in the early 1990s.

Giving evidence yesterday, Seán Dillon said that he had been invited by businessman John Butler to join his table at the dinner in the Royal Hospital in Kilmainham. He said other members of the consortium and their wives also attended.

He described Mr Butler as being "very much a supporter of Fianna Fáil".

Asked whether the fund-raising event was the O'Donovan Rossa cumann dinner (to support the Dublin Central constituency), Mr Dillon said he did not know. However "Mr Ahern and his able-bodied supporters were very much in presence on that occasion".

The tribunal is currently investigating the rezoning of lands at Cloghran near Dublin Airport, owned by the consortium in 1993.

Lobbyist Frank Dunlop, who was retained by the consortium, has said that he paid a number of Fianna Fáil councillors £5,000 between them to secure their support for the rezoning bid. The councillors have denied this contention.

Members of the consortium have said that they were not aware of any money being paid by Mr Dunlop to councillors.

The consortium purchased 18 acres of land at Cloghran in 1989 for £215,000. The lands were sold in March 1996 after they were rezoned for industrial purposes, for £1.6 million.

The tribunal heard yesterday that advisers to the consortium had drawn up proposals to have the lands invested in a company based in Cyprus to limit its exposure to capital gains tax.

Tax consultant Anne Corrigan, who designed the proposals, said that there was a double tax agreement between Ireland and Cyprus which meant that persons would not have to pay tax in both countries.

She agreed that by using a Cyprus-based company the tax liability could, if certain criteria were met, be reduced from 44.25 per cent to 4.25 per cent.

Counsel for the tribunal, Pat Quinn SC, contended that the entire use of the Cypriot company, Silverstone Investments Ltd, was an attempt to avoid the payment of tax.

Ms Corrigan replied that it was an attempt to avail of the provisions of the double tax treaty between Ireland and Cyprus.

The tribunal has heard that members of the consortium later decided not to use the non-resident company to acquire the Cloghran lands.

Meanwhile, former councillor Seán Gilbride said that he would "absolutely deny" allegations made by Mr Dunlop that he received a £2,000 composite payment to cover support for the Cloghran and other rezonings.

Mr Gilbride said he knew the brother of one member of the consortium and that both men had called to his house and asked for his support.

He said he supported the plan as it would create jobs.