THE Cabinet is to take independent legal advice on a possible appeal against yesterday's High Court award totalling £6.75 million to cover Mr Larry Goodman's costs in the Tribunal of Inquiry into the Beef Processing Industry.
The costs include a payment of £923,170 to the Attorney General, Mr Dermot Gleeson, who acted for Mr Goodman before his Government appointment.
The Cabinet is expected to consider the Taxing Master's ruling when it meets for the last time tomorrow before Ministers leave for a summer recess.
The decision was announced by the Taxing Master of the High Court, Mr James Flynn, yesterday. In all, £3 million is to be paid to counsel for Mr Goodman, £3.1 million to A & L Goodbody solicitors, and £554,000 to Rory O'Donnell and Co, the solicitors; who represented Mr Goodman during the export credit part of the inquiry.
A 14 day stay has been put on the implementation of Mr Flynn's decision at the request of Mr Peter Fitzpatrick SC, for the State. He said he would seek instruction on the matter. Such instruction would come from the Attorney General's office.
It is understood the Cabinet will have to turn to an independent source of expertise because of the involvement of Mr Gleeson in the case. It emerged in January, 1995, following Dail questions about the beef tribunal, that arrangements had been put in place whereby the Government could seek "independent legal advice" if there was a potential conflict of interests involving the Attorney General.
"The Government is taking legal advice on whether an appeal on this matter would be the best course to follow in accordance with arrangements already known for obtaining independent advice on matters in which the Attorney has previously had a personal interest," a Government spokesman said last night.
The court agreed that £554,000 be paid towards expenses. Included in that figure is £162 361.83p to Mr Pat Heneghan, who handled public relations for Mr Goodman during, the tribunal, £35,000 to the former group financial director of Goodman International, Mr Brian Britton, who was a witness. Mr Goodman will also receive £3,536.11 to cover his hotel accommodation expenses.
Regardless of an appeal, it was that some of the monies, probably between 55 and 75 per cent, would be paid. The amount will be agreed by both parties before close of business on Friday.
In concluding his ruling yesterday Mr Flynn said "the high cost involved in litigation is not as a result of huge fees charged by lawyers; indeed their fees are no higher than other professional fees, but is rather as a result of how the system operates". Later he said "the legal service thus provided must be paid for. Therefore, if the Oireachtas institutes an inquiry it must be accepted that it will incur costs," costs which he said were "indeed enormous
Mr Donal O'Donnell SC received £651,875; Mr Ian Finlay SC will be paid £623,025; Mr Michael Collins barrister £368,025, and Mr Seamus McKenna £434,450.
Mr Goodman's solicitors, A & L Goodbody, were granted costs of almost £3.1 million, based on an hourly rate of £200 an hour ford partners and for associates.
Mr Flynn did not allow a claim for £135,000 to cover offices used by Mr Goodman's solicitors at Arran Court in Dublin, which he said should come from the instruction fee.
The tribunal was set up in 1991.
The hearing for costs began before the Taxing Master of the High Court in October, 1995. After an adjournment in November to allow the High Court to decide, on the application of the Minister for Finance, whether witnesses' costs could be included, it resumed in February. Judgment in Mr Goodman's application was given yesterday, and that of Mr Pat Rabbitte and Mr Tomas Mac Giolla will be given this morning.