Chairman refuses to delay ruling on costs

Judge Alan Mahon has rejected appeals to delay a decision on legal costs at the tribunal until challenges to the tribunal have been heard in the High Court.

The chairman told lawyers for various parties who were found to have hindered or obstructed the tribunal that he had already made his position clear. It was his intention to determine the costs issue as if the proceedings were not taking place.

Earlier, lawyers for several parties claimed the chairman was not in a position to decide the matter until these proceedings had been determined.

Judge Mahon yesterday concluded a two-day hearing on the principles he should apply in deciding whether to grant multi-million euro legal costs to Ray Burke and other parties against whom findings of corruption were made.

Three separate legal proceedings have been started which challenge his right to deal with the matter.

Mr Michael Cush SC, for Mr Joseph Murphy jnr and his companies and Mr Oliver Barry, said it was "a matter of good order and common sense" for Judge Mahon to await the outcome of the court actions.

The chairman should wait before making a decision in relation to the costs of witnesses who were found to have hindered or obstructed the tribunal, he said. In the case of those found to have been involved in corruption, the chairman was not entitled to make any decision on costs, he argued.

Mr Colm Allen SC, for developers Michael and Tom Bailey, also urged the chairman to delay a decision on costs. He said his clients had a legitimate expectation that the matter would be dealt with by the previous chairman, Mr Justice Flood, who had "simply walked away [from the tribunal] without any real explanation".

However, Mr Michael Kealy, solicitor, for Mr P.J. Mara, urged the chairman to deal with the costs issue as soon as possible, saying it was now four years since his clients had been involved with the tribunal.

Earlier, Mr Martin Hayden SC, for the builders Brennan and McGowan, told the tribunal that "discrepancies" in witnesses' memory or the size of their bank accounts should not be factors in deciding whether to award them costs.

Mr Hayden said the fact that someone was of independent means should not mean he was not entitled to his legal costs. There was no jurisdictional or constitutional basis for making a distinction between different citizens based on their assets: "It should have nothing to do with his bank account."

He said "discrepancies" in the recollection of witnesses of events spanning a 30-year period should not be held against them in the determination of costs.

Brennan and McGowan, developers who owned Ireland's largest house-building firm in the 1970s and 1980s, were implicated in the tribunal's second interim report in a number of corrupt payments to Mr Ray Burke.

Mr Hayden claimed the tribunal legal team incurred "unnecessary delays" when delving into the affairs of Brennan and McGowan. The two builders had offered to attend for private interview at the tribunal yet the tribunal had opted for the expensive and lengthy option of public hearings.

Mr Des O'Neill SC, for the tribunal, said Mr Hayden's submission was "merely a delaying tactic".

Mr Hayden said this was an "incredible" point. His clients had spent "an inordinate amount of time" helping the tribunal yet there had been "an entire wastage of time".