Tribunal told Lowry tried to get rent rise for Ben Dunne

The Moriarty tribunal is investigating a claim that former minister Mr Michael Lowry tried to help Mr Ben Dunne get a 100 per…

The Moriarty tribunal is investigating a claim that former minister Mr Michael Lowry tried to help Mr Ben Dunne get a 100 per cent rent increase for a 90,000 square foot office block being rented by Telecom Éireann.

The increase would have seen the annual rent go from £450,000 per annum to £900,000 per annum. In the event, the rent was raised to £540,000 per annum.

The tribunal has been told that when Mr Mark FitzGerald, of estate agents Sherry FitzGerald, a Fine Gael activist and son of former Taoiseach Dr Garret FitzGerald, refused to co-operate, Mr Lowry said: "What are we going to do, Ben Dunne has donated £170,000 to Fine Gael."

Both Mr FitzGerald and Mr Lowry were on the Fine Gael board of trustees at the time. Mr Lowry was chairman.

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Mr Lowry has not denied that the two men discussed the issue in 1995, but "rejects absolutely" any suggestion that he tried to influence the arbitration then under way into the issue of the rent which would be paid.

Counsel for the tribunal, Mr John Coughlan SC, said the matter "warrants serious investigation and inquiry", and was relevant to the evidence heard two years ago by the Moriarty tribunal and the evidence heard by the 1997 McCracken tribunal.

Mr FitzGerald made a statement to the tribunal on the matter on November 26th. Details of recent statements made by Mr FitzGerald and Mr Lowry were read out by Mr Coughlan on the fourth day of his opening statement on the tribunal's year-long investigation into the 1995 competition for the State's second mobile phone licence.

Mr FitzGerald has told the tribunal he met Mr Lowry in April 1995. Mr Lowry asked about Mr Gordon Gill, of Sherry FitzGerald, who was working as an arbitrator in relation to rent for Marlborough House on Marlborough Street, Dublin, an office block rented by Telecom Éireann.

Mr Lowry, during the meeting at Power's Hotel in Kildare Street, told him the building had recently been bought by Mr Dunne, who had been in contact to say he wished to get the rent up from £5 per square foot to £10 per square foot.

Mr FitzGerald claimed Mr Lowry had said "your man Gill was involved and could I organise it".

Mr FitzGerald said: "I told Mr Lowry emphatically that I could not, and would not, and I referred to Mr Gill's role as an independent arbitrator.

"Mr Lowry then asked what 'we' were going to do as Ben Dunne had donated £170,000 to Fine Gael. I told Mr Lowry that was the first I'd heard of this contribution, and that he should not pursue this matter further."

Mr Lowry denies the claim, saying it was "neither fair nor correct" to suggest that he tried to influence the review.

Mr Lowry said he recalled Mr Dunne informed him of the level of rent he was seeking and that Mr Dunne asked whether he could see if the matter could be "hurried up".