Mr James Stafford, a former director of Century Radio, will tell the Flood tribunal this week that he was informed he would have to pay money to Mr Ray Burke and Mr P.J. Mara if he wanted a broadcasting licence, counsel for the tribunal said yesterday.
In his opening statement, Mr Pat Hanratty SC said that Mr Stafford would give evidence that Mr Oliver Barry, also a former director of Century Radio, had told him he would have to pay £90,000 for a national licence, £75,000 for either of the two Dublin licences or £50,000 for a local licence. "Mr Stafford will say that Mr Barry came to him and said `If you want to get a broadcasting licence it is going to cost money'," Mr Hanratty said.
Mr Stafford would also tell the tribunal that Mr Barry told him Mr Mara had approached him, saying Century Radio owed him money. Mr Stafford told the then chairman of Century Radio, Mr Laurence Crowley, about the allegations and has said there was no question of any payment being made to Mr Mara.
Mr Stafford has said Mr Barry approached him on a number of occasions with similar requests for payment from Mr Mara.
During 1990, a meeting was held in offices owned by Mr Dermot Desmond which included Mr Desmond as chairman, Mr P.J. Mara, Mr Oliver Barry and Mr Stafford. During the meeting it was stated again that Century Radio owed money to Mr Mara.
"Mr Stafford rejected the suggestion and said the money wouldn't be paid and that was the end of the issue", counsel said.
In September 1990 Mr Stafford had attended the wedding of Mr Conor Haughey at Mr Charles Haughey's home. Mr Stafford would say he was approached by Mr Desmond, who told him he should pay the money owed to Mr Mara. "He [Mr Stafford] said there was none due under any circumstances", counsel said. He also told Mr Desmond that the matter would be raised with Mr Charles Haughey if the requests for payment continued.
Mr Hanratty said that the allegations would be "hotly contested" by the parties. "Ray Burke will adamantly deny he required anyone to pay him any money." Mr Burke would contend he was not in a position to award the licence, as the IRTC had been entrusted with the task, and Mr Mara had said the allegation was "without any foundation".