Letter from Sir Anthony O'Reilly to Mr John Bruton

This is the text of a letter written by Sir Anthony O'Reilly to the then taoiseach, Mr John Bruton, on July 30th, 1996, two days…

This is the text of a letter written by Sir Anthony O'Reilly to the then taoiseach, Mr John Bruton, on July 30th, 1996, two days after the two men had met at Sir Anthony's holiday home in Glandore:

Tuesday at Rushane

My Dear John,

Thank you for dropping in on Sunday morning for the proverbial "cup of tea". I hope that our conversation served to convince you, or at least explain to you, how disappointed I am at the course of action taken by the present Government in regard to "private business", as it is quaintly described. I and my colleagues are alarmed at the inattention of certain ministers and equally alarmed that we have become something of a political football in other areas of our business. Counting:

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  • Waterford Wedgwood
  • Arcon
  • Wellworth - in Northern Ireland

We employ over 10,000 people in Ireland- and well over 100,000 people worldwide - and we pay taxes, VAT and PRSI directly and indirectly - like every other company, and I have to say that we have not, in any of our enterprises, received any help or encouragement from the present Government or the Ministers.

Waterford/Fitzwilton is perhaps the greatest success story in Irish business in the last decade. To take a company that was bankrupt, with almost £300 million of tax loss carry forward, was overstaffed and overpaid, and make it the company it is today after taking a strike, proving that outsourcing works, and at the end giving permanent employment to the workers that remain - without costing the Government anything, is an example that should be copied by all our State and semi-State companies.

At Independent Newspapers the conduct of the Competition Authority was frankly disgraceful. The Authority was rude to Liam Healy and David Palmer and gave the clear impression that they have made up their minds before the arguments had even been heard. To opine that the Irish newspaper market need not take account of UK newspapers was completely incompetent in defining the "relevant market" - a fact clearly stated by the newspaper commission when it reported a few weeks ago. The matter is now closed, but it must be clear to even the most biased observer that the enemy is not within but without - in the person of Rupert Murdoch - whose affection for Ireland is not among his most discerning characteristics; and that if Ireland is to have an indigenous print industry it it going to have to have support from every quarter if it is to repulse the long-term efforts of Rupert Murdoch and his lieutenants in Ireland from simply taking over the Irish media scene through BskyB, The Sun, The Times, The Sunday Times and the News of the World.

To date we have received absolutely no encouragement from the relevant Minister or his officials in trying to level the playing pitch. Indeed our feelings after the meeting on Monday of this week and here I include also The Irish Times, is quite to the contrary.

I am also including the Interim report of Arcon plc - which after visiting the High Court twice and the Supreme Court once, is building Ireland's first mine in 25 years. Again, it required no monetary support from growth, (i) has to widen the roads in Kilkenny, (ii) pay money to have the ESB come on, (iii) provide, at their expense, a water supply to all local residents whose walls are in any way depleted, (iv) post a pre-paid bonus for the mine closure in 10 years' time. As a family, we have over $60 million in this mine - while the Government cannot help on the world price of zinc or the dollar it is clear that the same incentives that apply to Heinz in Dundalk, do not apply to Arcon at Galmoy. In my view, mining which is so labour (male) intensive, and so beneficial, if successful to the economy, should be immediately encouraged and should be put under Forbairt as a matter of urgency.

PHL has been the subject of a direct letter (which I might add is confidential to you) from Brendan Hopkins. The figures speak for themselves, and do not require amplification from me, what is required is an immediate meeting with Sean Donlon and the committee of PHL, which should address each of the points raised in Brendan's letter. I might add that we are under acute pressure from our partners in the venture in relation to the terms under which they made their original investment.

All in all, it has been a rather joyless period for our endeavours and I hope that I have conveyed the rationale of this to you in this letter. I fully understand the many complications of coalition and the many pressures that you labour under daily, both at home and abroad. I have no wish to add to these, but felt I should respond openly and frankly to our initial interests as we see them.

Please give my best wishes to Finola and the hope that she has finally recovered from the accursed migraine - my mother suffered a lifetime of them!

Every good wish and I look forward to seeing you.

Tony.