RTE's involvement with Century Radio cost it an estimated £20 million, the Flood tribunal has heard.
RTE's chief financial officer, Mr Gerry O'Brien, said this figure, which he described as conservative, comprised debts, the cap on RTE's advertising, work already done by RTE and other charges.
The cap on advertising, introduced in a ministerial directive, cost RTE almost £18 million, he said. He also said he "couldn't put a cost on the amount of work" RTE put in, estimating the amount at £400,000.
Mr O'Brien told the tribunal yesterday that RTE had great difficulty in getting any type of payment from Century Radio.
The station went on air on September 4th, 1989, and RTE had difficulty in getting any money before the end of 1989, he said. "There were excuses why invoices were not paid. Everything was queried and re-queried," he said. What payments RTE received arrived "very erratically, in dribs and drabs".
While giving evidence earlier, Mr O'Brien denied allegations that RTE was "dragging its feet" in getting Century Radio started. E pushed out the boat for Century. Every effort was made - I would say above and beyond the call of duty - to make sure Century was looked after," said Mr O'Brien said.
A letter to Mr Vincent Finn, RTE's director-general, on May 19th, 1989, from Mr Michael Laffan, the chief executive of Century Radio, accused RTE of stalling in drawing up an agreement to get Century on air. Mr O'Brien described the contents as "totally untrue" and a "misrepresentation". He said it was like Century was playing a game RTE was not aware of, and "changing the landscape completely".
"The whole ball game had changed" with this letter, he said, and its contents were so absurd that there was difficulty dealing with them at the time and again now.
He said Mr James Stafford and Mr Oliver Barry, former directors of Century, were not getting their act together in getting the station started.
Century's letter said RTE was only the custodian of the national transmission network and, therefore, could not charge an access fee for transmitting Century's signal. Mr O'Brien said this was not true, as RTE was the owner of the transmission services. Century, he said, was trying to "get a free service" from RTE, and the national broadcaster was, in effect, subsidising Century.
The letter also said RTE was using its superior negotiating position to keep its monopoly as a broadcaster. Mr O'Brien said its negotiating position at this stage " had been well and truly beaten into the ground".