The former Taoiseach, Mr John Bruton, told Fine Gael ministers prior to the 1997 general election that Sir Anthony O'Reilly had been "seriously aggrieved and annoyed" by a number of Government decisions, including the fact that the GSM licence was not awarded to his consortium, it has been claimed.
In a statement to the tribunal, the former minister, Mr Michael Lowry, said Mr Bruton learned of Sir Anthony's "displeasure" at a meeting between the two men on August 25th, 1996, at Glandore, west Cork, where the businessman has a holiday home.
"Mr Bruton reported back on his minutes of the meeting to a Fine Gael ministers' meeting. He stated that Mr O'Reilly was seriously aggrieved and annoyed with a number of Government decisions which affected the Independent Group, including the GMS licence and the TV deflector issue," Mr Lowry said.
"During the ministers' discussions it was generally felt that Mr O'Reilly's dislike of the then coalition government was reflected in Independent Newspapers' political coverage," Mr Lowry said.
Sir Anthony has denied the claims, saying he had never expressed annoyance over his consortium's failed GMS licence bid.
However, he said Independent Newspapers had lobbied the Government on the MMDS issue, as the company had invested about £75 million in TV transmission rights which were being undermined by pirate operators.
"I found this situation to be wholly unsatisfactory and had no hesitation in making my views known to the then Taoiseach, Mr John Bruton," Sir Anthony told the tribunal.
In his statement of June 2001, Mr Lowry said Sir Anthony raised the issue of his consortium's application for the GSM licence at the Derby Day meeting at the Curragh in July 1995. Mr Lowry also claimed Sir Anthony "demanded" that he order the shutting down of a pirate deflector system. He further claimed that, some time subsequently, Sir Anthony expressed to the Government his "displeasure" at his consortium's failure to get the GSM licence.
Following discussions on the issue by Fine Gael ministers, it was decided that the Government adviser, Mr Sean Donlon, should act as a "mediator", and on September 4th, 1996, he met representatives of Independent Newspapers at Hatch Street. Mr Lowry said among those attending for the Independent were Mr Liam Healy, Mr David Palmer and the late Mr John Meagher.
Mr Lowry said Mr Donlon "reported back that it was a most difficult meeting, and that some very harsh comments had been made about the Government and individual ministers. He outlined a list of grievances and a series of demands from the Independent Group. Mr Donlon expressed concern that the Government was being placed over a political barrel. He told me that I was persona non grata with the Independent Group."
Mr Lowry noted in his statement that on the morning of the 1997 general election the front page of the Irish Independent carried a banner headline, "Payback Time", accompanied by a strong front-page editorial urging the electorate not to vote for the Government parties.
In his reply to the tribunal, Sir Anthony said he was "taken aback" by the contents of Mr Lowry's statement.
In a letter in September 2001, addressed from Castlemartin, Kilcullen, Co Kildare, Sir Anthony rejected the claim that he made any comment about his consortium's bid but confirmed he did meet Mr Lowry, although he believed it was a year after Mr Lowry had said.
Of the MMDS issue, Sir Anthony said: "I do not believe that I made any demands. This issue was to the best of my recollection discussed by me with Mr Lowry on Derby Day 1996 and not Derby Day 1995."
He said he could recall Mr Lowry calling to his executive box, accompanied by at least one friend. "I cannot recall whether or not I invited him to join me and my party in the box . . . He stayed to the best of my recollection for approximately 30 minutes. There were a number of other people in the box at that time. I believe I spoke with him for short period of time in an informal context."
Sir Anthony said the TV deflector issue was something about which Independent Newspapers Plc and its international partners felt strongly, "and I probably mentioned this matter to him".
"Minister Lowry and the Government were fully aware of the fact that a substantial number of unlicensed pirate television broadcasting systems were operating throughout the country in breach of the relevant legislation. We were very concerned that the Government, as with previous governments, did not appear to be taking sufficient action to enforce the law and to close down these illegal operators." Sir Anthony said the extent of their concerns was particularly great in mid-1996, and they made extensive representations to the Government.
However, it became clear to them that prosecution of illegal operators would not take place because that would lose votes.
While he made his views known to Mr Bruton on the issue, Sir Anthony said "it is totally untrue to say that I expressed to Mr Bruton or to the then government any annoyance or displeasure, extreme or otherwise, at the non-award of the second mobile phone licence to Irish Cellular Telephones Ltd . . . Similarly, it is untrue to suggest that I was seriously aggrieved or annoyed with the non-award of this licence . . ."
Sir Anthony said it was notable that, contrary to Mr Lowry's statement, neither Mr Palmer nor Mr Meagher was present at the meeting with Mr Donlon. The meeting was "entirely" concerned with the group's frustrations at the Government's "complete unwillingness" to take action against the pirate operators. Neither Mr Healy nor Mr Brendan Hopkins, who also attended the meeting, had described Mr Lowry or any other minister as persona non grata within the Independent Group.