Multi-million-euro battle over tribunal costs to begin soon

Mahon TribunalA legal battle over tens of millions of euro in costs arising from the first five years of the tribunal's work is set to open shortly.

Judge Alan Mahon indicated yesterday that he would be examining the costs issue next month.

He also formally announced a three-week break in public hearings, but denied this was entirely due to the local and European elections.

The tribunal has received legal bills amounting to more than €25 million from parties represented during hearings into the allegations of Mr James Gogarty between 1998 and 2002. The final total, when all bills are submitted, could be twice this.

Most of the hundreds of witnesses will be awarded their legal costs, but the tribunal has the power to withhold costs from people who hindered or obstructed its work.

It may also seek to have obstructive witnesses pay some of the tribunal's own costs.

The former chairman, Mr Justice Feargus Flood, found in his interim report in 2002 that 15 people, including the former minister Mr Ray Burke and builders Michael Bailey and Brennan & McGowan, had hindered and obstructed the work of the tribunal.

Many of these parties have signalled their intention to fight any attempt by the tribunal to withhold costs or levy its own costs on them. Mr Burke's legal bill alone comes to over €10 million.

Mr Justice Flood originally planned to decide on the costs issue last year, but the scheduled hearings were cancelled at short notice, and he retired shortly after.

With legal experts warning that any decision on costs made by a new chairman could be open to legal challenge, the Government then had to pass special legislation to enable his successor, Judge Mahon, to deal with the issue. This passed into law only 10 days ago.

Legal proceedings started last year by Mr Burke, which aim to force the tribunal to award the former politician his costs unless Mr Justice Flood decides the issue, are still before the courts.

Mr Joseph Murphy jnr, who the tribunal found was present when Mr Burke received a corrupt payment, is also challenging the tribunal's jurisdiction in the matter.

Any decision by Judge Mahon not to award full costs is likely to be challenged in the courts.

Judge Mahon said the impending hearing on costs was one reason why a break in public hearings was needed.

He said the tribunal wasn't adjourning "solely" because of the elections. Breaks in public hearings were essential to enable the tribunal to concentrate on its "enormous workload", to carry out extensive private investigations and do preparatory work for future modules.

In addition, the three judges on the tribunal had "significant additional duties" which made breaks in public hearings essential.