Large offshore payments followed the ending of monthly fee

Builders Brennan and McGowan paid Mr Ray Burke a monthly fee amounting to £85,000 over a seven-year period, according to new evidence revealed at the tribunal. The money, comprising £1,000 a month payments between 1975 and 1982, represented Mr Burke's commission on houses he sold on behalf of the two builders, the former politician told the tribunal yesterday.

Several months after the last payment was made, Mr Burke received the first of at least three large offshore payments from Brennan and McGowan. Between 1982 and 1985, the builders paid him at least £125,000 through an offshore account in Jersey. Both parties have described these payments as "political donations".

The money paid between 1985 and 1992 came from a Brennan and McGowan-owned company, Kilnamanagh Estates, and was paid to Mr Burke's estate agency, P.J. Burke (Sales) Ltd. However, Mr Burke then transferred most of it to his personal accounts. He said the money represented his salary from the company.

Ms Patricia Dillon SC, for the tribunal, said Mr Burke's accountant told the Revenue Commissioners in 1980 he had no income from his business since December 1977. Full allowance should be allowed for his Dβil salary, the accountant advised the Revenue.

Ms Dillon said that between 1972 and 1978, Mr Burke treated P.J. Burke (Sales) Ltd as his employer, but from 1979 he was no longer treated as an employee and no income was recorded. The company ceased trading in 1982 and was wound up in 1985.

She asked why Mr Burke hadn't sold the company which, she said, was still receiving payments from Kilnamanagh Estates up to 1982.

Mr Burke said the company just "withered away" as he concentrated on his political career.

The tribunal's final report into Mr Burke's relations with Brennan and McGowan is unlikely to appear before the new year.

This follows the decision by Mr Justice Flood to accede to a request from the builders' counsel to extend the closing date for final submissions on its hearings. The new date for final submissions is now December 21st.