There was "complete collusion" between board members of the blood bank in the 1980s and early 1990s to keep secret the BTSB's role in infecting haemophiliacs with HIV, it was claimed at the tribunal.
Counsel for the Irish Haemophilia Society, Mr Martin Hayden SC, on the first day of his closing submission, said there were only "coded" references to the infections in minutes of board meetings.
He said members of the board included representatives of the Department of Health and claimed, therefore, the Department was aware that BTSB products had infected haemophiliacs when it entered a no-fault compensation deal with infected persons in 1991.
The fact that this was not spelt out in minutes of board meetings was referred to as "State-sponsored concealment" by Mr Hayden.
He claimed a memo prepared for the then Minister for Health, Dr Rory O'Hanlon, prior to a Dβil debate on compensation for haemophiliacs, which did not refer to the BTSB's role in the infections, was "crafted to exonerate" the State of liability.
Counsel said the Department could not evade its share of responsibility for the infection of haemophiliacs because it hadn't ensured the BTSB implemented a European recommendation that each State should become self sufficient in the preparation of blood products.
"Such an abdication of responsibility and indifference as to implementation of national policy" amounted to Department officials conducting themselves in a manner bordering "on gross negligence," he submitted.
Mr Hayden said the Department also had to share responsibility for the financial disaster which befell the BTSB in the early 1980s. It was the minister who held "the purse strings", Mr Hayden said.
It appeared the approval of the Department was not sought by the BTSB for its decision to move to a new premises at Mespil Road, which contributed to its financial difficulties, he said.
The decision to move to Mespil Road bordered on "financial suicide", Mr Hayden claimed.
He said it was alarming the way Dr Vincent Barry was appointed the BTSB's chief medical consultant in late 1985 even though he had no knowledge of blood products.
He urged the tribunal chairwoman, Judge Alison Lindsay, to make a number of recommendations - to urge the BTSB to apologise for infections it caused and to reconstitute the board of the BTSB.
Mr Hayden will continue making his submission today.