Tribunal costs ruling saves Lowry £100,000

The former Fine Gael minister, Mr Michael Lowry, has had his costs awarded to him by the chairman of the Dunnes Stores (Payments…

The former Fine Gael minister, Mr Michael Lowry, has had his costs awarded to him by the chairman of the Dunnes Stores (Payments to Politicians) Tribunal. The decision in favour of Mr Lowry is likely to have saved him more than £100,000. He was one of the main figures before the tribunal, with legal representation throughout its sittings. He also had to respond to numerous inquiries from the tribunal's legal team.

Mr Justice McCracken, in his decision on costs yesterday, said that only three parties could possibly have been deprived of their costs from the tribunal.

"One of those parties, Mr Charles Haughey, has not sought his costs and so the point does not arise. The other parties are Mr Michael Lowry and Garuda Ltd." (Garuda is Mr Lowry's company).

The activities of Mr Lowry and his company were largely responsible for the setting up of the tribunal, Mr Justice McCracken said.

READ MORE

"However, while Mr Michael Lowry may have been less than forthcoming in his statement to Dail Eireann, he did fully co-operate with the tribunal at all times and his assistance undoubtedly saved considerable time and money."

Mr Justice McCracken said the discretion to refuse costs was not to punish or penalise a party for his past actions but ought to relate to the activities of the tribunal itself and the behaviour of the party in relation to the tribunal. "On that basis, Mr Michael Lowry is entitled to his costs."

The chairman said he had some misgivings about the necessity for Garuda Ltd having separate legal representation. However, he granted the company its costs.

Costs were applied for by both Mr Ciaran Haughey and his company Celtic Helicopters. Mr Justice McCracken awarded them only one set of costs but ordered the costs of making discovery to each of them.

The chairman decided that he did not have the power to award costs to Mr Jack Stakelum or Ms Joan Williams, who had both applied for costs. Neither party had been granted representation before the tribunal.

Mr Stakelum is an accountant who gave evidence of managing the finances of the former Taoiseach, Mr Haughey. Ms Williams, a former secretary of the late Mr Des Traynor, did not give evidence.

Mr Justice McCracken said that if he had the power to do so he would award costs to both Mr Stakelum and Ms Williams. He recommended that either the Department of the Taoiseach or the Department of Finance make an ex-gratia payment of some kind to them.

The full cost of the tribunal to the Exchequer has still not been arrived at: £2.5 million was put aside in the estimates, and £1 million of this has already been accounted for. The final figure will be published when it is known.

In October, the chairman said the law did not allow a tribunal seek to recover its own costs from someone who had appeared before it.

Colm Keena

Colm Keena

Colm Keena is an Irish Times journalist. He was previously legal-affairs correspondent and public-affairs correspondent