Lowry denies trying to influence level of rent of Dunne property

The former minister Mr Michael Lowry has denied an allegation that he tried to influence the level of rent being charged to Telecom Éireann at the company's offices off O'Connell Street, Dublin, in order to benefit the businessman and Fine Gael donor Mr Ben Dunne, who owned the office block.

The claim was made to the Moriarty tribunal by Mr Mark FitzGerald, a former Fine Gael trustee and the son of former taoiseach Mr Garret FitzGerald.

Details of recent statements made to the tribunal by Mr FitzGerald and Mr Lowry were read out yesterday by tribunal counsel, Mr John Coughlan, SC.

In a statement on November 26th last, Mr FitzGerald said Mr Lowry approached him in late March or early April 1995 asking about "a man called Gill" who worked at Mr FitzGerald's company, the auctioneers Sherry FitzGerald, and who was involved in the rent review at Marlborough House, also known as Telephone House.

Mr FitzGerald said he recognised the employee as Mr Gordon Gill, whom he subsequently discovered had been appointed arbitrator in the review. In the circumstances, Mr FitzGerald said he did not consider it appropriate to discuss the matter with Mr Gill.

"Some very short time later", however, Mr Lowry asked to meet Mr FitzGerald at Power's Hotel on Kildare Street. There, he said, the former minister told him the building had recently been bought by Mr Dunne and that the latter had been in contact to say he wished to get the rent up from £5 per square foot to £10 per square foot.

Mr FitzGerald claimed Mr Lowry said: "Your man Gill was involved and could I organise it." Mr FitzGerald said: "I told Mr Lowry emphatically that I could not and would not and I referred to Mr Gill's role as an independent arbitrator.

"Mr Lowry then asked what 'we' were going to do as Ben Dunne had donated £170,000 to Fine Gael. I told Mr Lowry that was the first I'd heard of this contribution and that he should not pursue this matter further."

Mr Lowry denies the claim, saying it was "neither fair nor correct" to suggest that he tried to influence the review.

Mr Lowry said he recalled that Mr Dunne had informed him of the level of rent he was seeking and that the businessman asked whether he could see if the matter could be "hurried up". Mr Lowry accepted he related information to Mr FitzGerald which had been given to him by Mr Dunne but he rejected "completely" the inference being drawn.

He added that Mr FitzGerald would have been aware of Mr Dunne's contributions and the statement attributed to him in this regard "was not made".

Mr FitzGerald claimed Mr Lowry mentioned the issue a second time when they were returning from a private house viewing a short time after the Kildare Street meeting. Mr FitzGerald said he re-emphasised he could not and would not intervene with Mr Gill's functions.

In May/June 1995, Mr FitzGerald said, he was informed that the rent on the property had been fixed at about £6 per square foot.

Continuing his opening statement, Mr Coughlan said the matter warranted "serious investigation" in the context of potential payments to Mr Lowry in that Telecom Éireann was within his remit as minister. He said the evidence of Mr Dunne to the Moriarty and McCracken tribunals would also require revisiting.

Mr Coughlan noted it had been necessary to read Mr FitzGerald's statement into the record yesterday following the publication of some details of it in last Sunday's edition of the Sunday Independent. Mr Coughlan said the information could only have come from a small number of individuals, who had been furnished with the statement.

He added that the publication of this information could represent an attempt to undermine the integrity of the tribunal.

Mr FitzGerald and Mr Lowry have both denied leaking the information. Mr Ben Dunne had yet to reply to the tribunal but Mr Coughlan said there was nothing necessarily sinister about this as the businessman appeared to be abroad at present.

The tribunal's inquiries into Mr FitzGerald's relationship with Mr Lowry stemmed from a statement given to it by Mr Colin McRae, Mr Lowry's former programme manager.

Mr McRae said that during the period from February 1995 to July 1996 Mr FitzGerald attended a number of meetings with the former minister at the Department.

Among these contacts listed by Mr FitzGerald in his statement was a house viewing at Palmerstown Close on April 6th, 1995.

He said Mr Lowry had approached him in advance of the viewing, saying he wished to buy a house but "wanted to keep a low profile". He said Mr Lowry wanted no one but him to show him the property, and while he had indicated "that this was not the way we operated", he agreed to turn up along with the employee handling the sale.

Mr FitzGerald said that during the viewing, Mr Lowry mentioned the issue of the mobile phone licence but they did not discuss the matter in detail. Mr FitzGerald also told the tribunal he met Mr Denis O'Brien of Esat with Fine Gael TD Mr Phil Hogan and the late Mr Jim Mitchell at a restaurant close to his office in mid-October 1995, shortly before the licence was awarded.

Mr FitzGerald said he was "surprised" to see the two politicians there. As he sat down, he said Mr O'Brien asked him had he heard "any news" of the licence.

Mr FitzGerald said he told Mr O'Brien he bumped into Mr Lowry at a Fine Gael golf classic at the K Club and Mr Lowry had said to him that Mr O'Brien had made a good impression on the Department and that he had "good sites and good marketing". Mr FitzGerald said he was "annoyed with himself" at making the comments "even though they had been gratuitous" and he believed them unimportant.

In a statement to the tribunal, Mr Hogan said he was satisfied that the meeting referred to by Mr FitzGerald did not take place, or if it did he had no recollection of being present.

Mr O'Brien said he had no recollection of ever meeting Mr FitzGerald in the company of Mr Hogan and Mr Mitchell. He also said he was "at a loss" to know why such a meeting would have taken place.

Mr Lowry said he could recall Mr FitzGerald raising the issue of the mobile phone licence at the golf classic and he said he provided him with "minimal, non-committal information, which was effectively already in the public domain".

The tribunal will resume its hearings next Tuesday.