Century asked Burke to close RTE Radio 2

Century Communications asked the minister for communications, Mr Ray Burke, to close RTE Radio 2FM during negotiations to save Century Radio, it emerged at the Flood tribunal yesterday. FM2, as it was known, was the main source of competition for audience and advertising for the independent station.

A Bank of Ireland memo dated April 1990, on a meeting between Mr Stafford and the bank, was read by counsel for the tribunal, Mr Pat Hanratty SC. Headed "Matters emerging", it records:

"Representations have been made to the Government by [Oliver] Barry and Stafford that closure of FM2 would be required." Asked if this were true, Mr Stafford said he thought "at this stage it emerged as one of our proposals".

The memo continues: "If FM2 closure is not forthcoming, then it is essential that `rate-capping' is eliminated with FM2 charges [for advertising air-time] increasing by 60 to 67 per cent. Stafford maintains that once the content of the legislation is clear, it will be possible to approach the institutions for fund-raising."

Mr Stafford and Mr Barry had been approached by a number of potential investors who hoped to put money into the station. Following further discussions with the bank, the memo records that Mr Stafford and Mr Barry would be seeking "a further urgent meeting with Ray Burke". They also put it to the bank that Mr Eamonn Gallagher, area credit manager, Dublin, with Bank of Ireland, should meet the minister "to emphasise difficulties".

The suggestion that the bank should have a meeting with the minister was made, said Mr Stafford, to "renew the pressure . . . to bring home how serious this crisis was, this ongoing crisis. We were totally dependent on the `level playing field'."

Century sought equality of access to radio signal with RTE. At the time, RTE had more than 60 per cent of the radio signal, with Century having about 30 per cent. "If we weren't going to get the `level playing field', we were all wasting our time and money," said Mr Stafford.

Asked what the minister's reaction was to being asked to close FM2, Mr Stafford said Mr Barry dealt with the matter. "It was certainly considered," he said. "In the final analysis they did not like this idea."

"They", he said, were the minister and his department. "I don't think it was ever given the status of a proposal that was actively pursued," he added. "It was a suggestion that was thrown on the table."