1991 elections 'bad for Quarryvale', says O'Callaghan

MAHON TRIBUNAL

THE JUNE 1991 local elections were " very bad" for the Quarryvale development, the Mahon tribunal was told yesterday.

Cork developer Owen O'Callaghan said he was very concerned because many of the councillors who had supported them in a preliminary vote to rezone Quarryvale for retail development in May 1991 lost their seats.

The massive loss of seats was in part attributed to a "turf war" started by Green Property, the company behind the rival Blanchardstown shopping centre development. The company carried out an intense campaign against the development.

The planning tribunal is questioning Mr O'Callaghan as part of the Quarryvale II module, an investigation into allegations of corruption surrounding the rezoning of land on which the Liffey Valley shopping centre is built.

Patricia Dillon SC, for the tribunal, said 32 of the 78 councillors lost their seats and 14 of the 31 councillors who voted for Quarryvale were among the casualties. Fianna Fáil was no longer in the majority, she said.

"It was very bad for Quarryvale, no doubt about that," Mr O'Callaghan said.

Ms Dillon said it became necessary for Mr O'Callaghan to spread his contact to wider parties, instead of concentrating on Fianna Fáil. "As far as I was concerned, the game plan for May was the same thing, we had to speak to all councillors," Mr O'Callaghan said.

After the election, Green Property continued with its campaign against Quarryvale, Ms Dillon said.

Mr O'Callaghan proceeded to meet all of the councillors as part of his own campaign to ensure Quarryvale kept its retail zoning.

"Two people wouldn't meet me out of the whole 78 . . . one was Alan Shatter, the second, I can't think of the name now," he said.

Ms Dillon said Mr O'Callaghan's partner in Quarryvale, Tom Gilmartin, had told the tribunal he had been invited to take over Green Property. He also said he attended a meeting at the bank at this time and Mr O'Callaghan was unexpectedly present.

"Neither of the two items happened actually," Mr O'Callaghan said.

He also said he did not tell the bank about a payment of £10,000 to the late Liam Lawlor at a meeting in which they were discussing the company's debts.

Ms Dillon asked why he had kept it a secret. "I did not and I do not broadcast these things," Mr O'Callaghan said.

The tribunal also heard that in late 1993, former taoisigh Albert Reynolds and Bertie Ahern wrote to Mr O'Callaghan asking for financial support for Fianna Fáil.

The tribunal was told that Mr O'Callaghan also met Mr Ahern and Mr Reynolds to lobby for financial support for a proposed national stadium in west Dublin.

Mr Ahern also attended a meeting with prospective financiers for the project, Chilton O'Connor, in Los Angeles in March 1994. Mr Reynolds had also met the company in Los Angeles.

Pat Quinn SC, for the tribunal, asked John Deane, business partner and solicitor of Mr O'Callaghan, if he was aware of what transpired at that meeting. Mr Deane said he was not.

"Two of the most senior government ministers had meetings outside the State with senior bankers in relation to the project . . . a project with which you were going to benefit . . . and you can't tell the tribunal . . . what was discussed at the meeting or what the outcome of the meetings were?" Mr Quinn asked.

"I can't," Mr Deane said. "I didn't get involved in the day-to- day running of the company, nor in the day-to-day issues regarding meetings."

The tribunal heard that Mr O'Callaghan eventually contributed a total of £100,000 to Fianna Fáil in 1994. The stadium project, however, did not go ahead.