UNPUBLISHED OFFICIAL estimates show that the total cost of the Mahon tribunal is likely to increase to almost €250 million due to the projected cost of third-party legal fees.
The latest public estimate was compiled by the Comptroller Auditor General in December 2008, who said the tribunal was likely to cost between €171 million and €194 million.
However, recent tribunal projections provided to the Department of the Environment indicate third-party legal costs will see the final bill rise to about €244 million.
The bulk of this figure is expected to include third-party legal fees of about €147 million. This follows a Supreme Court ruling earlier this year that the tribunal should also pay the costs of third parties who have not co-operated with it.
The tribunal has heard evidence from some 420 witnesses or third parties since 2002.
Little information has been made public about legal bills received by the tribunal, but it has been reported that Ray Burke’s lawyers submitted a bill for €10.5 million, while the legal bill for whistleblower James Gogarty comes to €3.5 million.
Third-party bills received by the tribunal are referred to a legal costs accountant for negotiation. In the event of a failure to agree a settlement, they will be submitted to the chief taxing master for a ruling. This is expected to take place after the tribunal’s final report has been published.
Department officials, however, say the projected overall costs are just estimates as they cannot anticipate how many of the 400-plus witnesses who have appeared before the tribunal will seek and be awarded costs.
Established in 1997 to examine alleged planning irregularities, the tribunal was chaired by Mr Justice Feargus Flood until he retired in 2002. Its report has been delayed pending a Supreme Court appeal by developer Owen O’Callaghan.
The tribunal ceased its public hearings in October 2008, with some 420 witnesses having appeared before it over just under 600 sitting days. It is expected to publish its final report over the coming months.
Up to the end of last year, the Mahon tribunal had cost the State a total of just under €90 million since its establishment. Most of these costs related to the tribunal’s internal legal team (€47 million), administrative costs (€27 million), third-party legal costs (€10 million), court costs (€6 million) and other expenses.
As part of a cost-cutting drive, the Government earlier this year reduced the daily rates for senior counsel from €2,070 per day to €1,760, while junior counsel rates fell from €1,380 to €1,173.
The records, which were obtained by The Irish Timesunder the Freedom of Information Act, also indicate some frustration within the Department of the Environment over the lack of information from the tribunal over potential costs.
The tribunal has also yielded some benefits, with just over €50 million collected by the Revenue Commissioners and the Criminal Assets Bureau on foot of information that came to light at the tribunal.
Criminal investigations have also led to prison terms for former lobbyist Frank Dunlop and former minister Ray Burke.
