Burke `marked cards' for Century on fees - Stafford

Members of the first Independent Radio and Television Commission, including its chairman, Mr Justice Henchy, are expected to …

Members of the first Independent Radio and Television Commission, including its chairman, Mr Justice Henchy, are expected to be called to give evidence to the Flood tribunal following new revelations concerning the awarding of a licence to Century Radio.

Century was provided with advance information regarding the issues the commission would ask about at oral hearings held during the application process in January 1989, a tribunal lawyer suggested yesterday.

Specifically, the station's promoters were aware that commission members would avoid asking about the transmission fee Century was prepared to pay RTE, internal company minutes appear to show.

The co-founder of Century, Mr James Stafford, yesterday denied having any specific knowledge of these matters. He also denied that Century dishonestly put pressure on the IRTC to influence the then minister for communications, Mr Ray Burke.

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Century was also told in advance that Mr Burke would order RTE to reduce the transmission fee. Mr Burke provided advice on the route Century should follow in order to enable the Minister to issue a directive reducing the fee.

"Mr Burke marked our cards," Mr Stafford told the tribunal.

RTE and Department of Communications officials agreed on a transmission fee of £614,000, but Century refused to pay more than £375,000.

At the time of the hearings, Century had no breakdown of this figure, which was "arrived at on the basis of accountancy and not technical assessment", as Mr Pat Hanratty SC, for the tribunal, put it.

Century told Mr Burke and Mr Justice Seamus Henchy, the chairman of the IRTC, that the station would not be viable if it had to pay more than £375,000. This figure was not negotiable, the board told Mr Justice Henchy.

Mr Stafford said he warned the Minister it would go out of business if the figure was exceeded. However, in internal company minutes the £375,000 is described as "a steal". Century was prepared to pay up to £520,000. Under intense questioning, Mr Stafford conceded Century's figure was "a negotiating figure". It was not true to say the station would not be viable if it paid more.

Mr Stafford said he and the founder of Century, Mr Oliver Barry, met Mr Burke about the issue. No record exists of this meeting and Mr Stafford could not recall if a civil servant was present.

At first the Minister said he could do nothing for Century, but later advised Mr Barry if Century contacted the IRTC, and the IRTC then contacted him, he would then be able to intervene.

Most members of the IRTC at this period have been interviewed privately by tribunal lawyers investigating payments to Mr Burke. At least six have signed statements saying there was no outside interference in the process of awarding licences.

The tribunal is investigating the payment of £35,000 by Mr Barry to Mr Burke in May 1989. Mr Stafford continues his evidence today.

Paul Cullen

Paul Cullen

Paul Cullen is a former heath editor of The Irish Times.