CENTURY RADIO: Not even the "corrupt" support of a minister could save Century Radiofrom collapse, writes Frank McNally
Century Radio opened for business in September 1989, with star presenters, who included Mr Terry Wogan, backers, who included Mr Chris de Burgh, and a £400,000 promotional splash to announce its arrival on the national airwaves.
It collapsed two years later with little over half the audience share it targeted, £7 million in losses, and its chief promoter, the impresario Mr Oliver Barry, financially ruined.
The project had been weakened from an early stage by the decision of Ireland's most famous broadcaster, Mr Gay Byrne, not to get involved. But the promoters had an arguably even more influential name on their side, the minister for communications, Mr Ray Burke.
The minister's commitment to the venture was such that even before the station opened, the Independent Radio and Television Commission was complaining of his "almost daily consultation in matters that need not concern him".
The minister intervened on Century's behalf in two direct ways. In March 1989, he issued a directive under which the station acquired the access it needed to RTÉ's transmission network for an annual fee far less than the £614,000 RTÉ - and all available evidence - suggested was fair.
Mr Burke had previously agreed with RTÉ's estimate, and Mr Justice Flood found he had no good reason to change his mind. Moreover, prior to winning its licence, Century did not even enter negotiations with RTÉ for the use of the network, confident the minister would deliver in its favour.
But the new station was quickly beset with financial problems, as listenership and advertising failed to match even the most cautious optimism. After the general election of June 1989, Mr Burke retained the communications portfolio and with it his commitment to Century. In 1990, he championed legislation that capped RTÉ's advertising income, with a view to benefiting the independent operators. Between these two interventions occurred the event which in Mr Justice Flood's view defined the relationship between Mr Burke and Century's promoters.
In May 1989, shortly before the election, Mr Barry paid Mr Burke £35,000 in the minister's Kildare Street office. Mr Burke told the tribunal it was an unsolicited political donation. The report says the money was received "not as a political contribution, but as a bribe".
Of Century's other co-founders, the judge concludes that Wexford millionaire Mr James Stafford knew the £35,000 was a "corrupt" payment and that Mr John Mulhern, businessman and son-in-law of former Taoiseach Mr Charles J. Haughey, must have known it too.
In one of the more colourful details, the tribunal heard the money for Mr Burke came out of the so-called "Oliver Barry/Frank Sinatra savings account". Mr Burke had certainly done it his way in the reform of Irish broadcasting. According to Mr Justice Flood he did "to serve the private interests of the promoters of Century Radio".
On one aspect the report is much less certain. It admits failure to reconcile contrasting versions of the involvement of the former government press officer Mr P.J. Mara in Century. But in the chapter on "Co-operation with the tribunal", Mr Mara joins the legion of the damned, for failing to disclose details of a bank account operated by him in the Isle of Man.
Although Mr Burke sought to place the donation in the context of assistance from a lifelong party supporter, the tribunal chairman puts it in stark perspective.
Mr Barry had made contributions of £5,000 to both the party and the then taoiseach, Mr Haughey. The payment to Mr Burke was "seven times greater".
"In the context of Mr Burke's then income, it represented a sum which almost equated to his gross income as the holder of two [political\] offices and certain private income."
The chairman also has no difficulty accepting Mr Barry's contention that the donation was demanded by Mr Burke, and in cash. Mr Barry was "rather taken aback" by the request and his financial circumstances at the time "were not such that he could make a payment of £35,000 at will".
Mr Barry's finances were in worse shape when the station finally folded in November. It was said to be spending £3 for every £2 it earned by then, and it is believed to have cost him £3 million.