Mr Charles Haughey said when he decided to build a residence on his island, Inishvickillane, in 1977 he did not think of it in terms of whether the money would be there to pay the builders. He just left it up to Mr Des Traynor to fund it.
The former Taoiseach told the tribunal he bought the island for £20,000 from two elderly brothers in 1973 or 1974.
Mr John Coughlan SC, for the tribunal, referring to the construction of the residence, asked: "How did you arrive at a decision that you could build and that there would be money there to pay the builders?"
Mr Haughey replied: "I don't think I thought of it in those terms."
Mr Coughlan asked: "Well, what terms did you think of it in?"
"I just decided to go ahead with the building, leaving it up to Mr Traynor to fund the operation," said Mr Haughey.
Mr Coughlan said: "To find the money."
"Provide the money," Mr Haughey said. "I may have had the idea of taking out a building society loan. I don't recall."
Mr Coughlan said Mr Haughey had told the tribunal he did not know of the existence of four accounts in Guinness & Mahon in his name. In 1976 he was heavily indebted to AIB and had small borrowings from Merchant Banking.
Referring to the first G & M account, Mr Coughlan said there were a number of lodgements, totalling roughly £90,000, in 1976-77. There were also debits.
From May 1977 to January 1978, the record showed six payments totalling £15,000 to an AIB account in the name of Mr Dan Brick, the builder concerned in the construction of the island residence.
Mr Haughey said it would almost certainly relate to the building work.
Mr Coughlan said there was a reference to a payment to J.A. Wood, builders' suppliers in Cork, for £261.94 in December 1977. In March 1978 there was £20,000 payment to Collin Bros, Dublin. Mr Haughey agreed these would be likely to be for building materials.
The tribunal adjourned until Thursday, October 12th.