Broadcaster Gay Byrne has told the Flood Tribunal lawyers that he was told Century Radio would be "a licence to print money".
Mr Pat Hanratty SC, for the tribunal, questioned Mr James Stafford on this comment, saying Mr Byrne had been told Century would produce so much money they would have to get wheelbarrows to carry it around.
"If you have Gay Byrne, you have a licence to print money," Mr Stafford said.
Mr Hanratty said when Mr Stafford had previously been asked by the tribunal lawyers if Century was considered a licence to print money, he told them "it wouldn't really be as there would be losses in the first two years".
Mr Hanratty asked if after two years, Century was considered to be a licence to print money.
Mr Stafford said such a concept often surrounded new business ventures but he was aware of the risks with setting up a radio station.
"We knew it was a high-risk venture and it turned out to be a higher risk than had been anticipated," he said.
The tribunal earlier heard that Century would have gone into liquidation in late 1989 if the then minister for communications, Mr Ray Burke, had not intervened and given assurances to the bank.
Mr Stafford said Century's fall in revenue was directly due to the low level of coverage its radio services had throughout the State.
In addition, Mr Stafford said, Century had wanted to advertise on RTE television but was refused. He also said before Century went on air RTE spent £1 million on promoting its radio services.
"All this caused a crisis," he said.
The tribunal was also told that a Bank of Ireland memo indicated that it had been advised by Mr Burke in confidence that Mr Stafford and Mr Oliver Barry would be able to reduce their stake in Century from 51 per cent.
The Independent Radio and Television Commission, when it awarded the licence to Century, said Mr Stafford and Mr Barry would have to retain a 51 per cent stake.
If this stipulation was lifted Mr Stafford and Mr Barry would have been able to sell Century, the tribunal was told.
Mr Stafford said he could not see how the statement could have been made to the bank, as the IRTC's regulations were clear. "I assure you Mr Burke did not give such an assurance," he said.
Mr Stafford said he did not give such an assurance to the bank and he could not recall Mr Barry giving such an assurance.