Storm FM, a consortium including nightclub operator Mr John Reynolds, has alleged in the High Court that there was bias by the Independent Radio and Television Commission (IRTC) in granting a Dublin radio licence to a rival consortium. Yesterday, Mr Justice Quirke granted leave to Storm FM to challenge the IRTC's decision to grant the licence to Spin FM. The leave acts as a stay on the award of the licence.
Last week, a similar temporary restraining order against the IRTC was made in favour of Hot Radio Company Ltd, trading as Pulse FM. When making his application for Pulse FM, Mr Paul Gardiner alleged Mr Denis O'Brien, who owns 25 per cent of Spin FM, was also involved with East Coast Radio and 98FM.
Yesterday, Mr Colm Allen SC, for Storm FM, said one of the Storm FM directors, Mr Reynolds, of The Cedars, Grove House, Milltown, Dublin, had sworn an affidavit in which he alleged that bias arose from the activities of a member of the commission, Mr Colum Kenny.
Mr Allen said Mr Reynolds had discovered from newspaper reports that Mr Kenny had, in his capacity as an IRTC member, made inquiries from the Garda Drugs Squad about Mr Reynolds before the oral hearing on the licence application. Mr Allen said they had written to Mr Kenny to ask him to clarify whether the report was correct.
In his affidavit, Mr Reynolds said that, before Storm FM made submissions for the new station, he had spoken to Mr Dermot Hanrahan, chief executive of FM104, who had said he had a conversation with Mr Michael O'Keeffe, IRTC chief executive, and was told the commission policy on cross-ownership remained. This was that a person could own a radio station and up to 27 per cent of another radio station.
Mr Reynolds said since the decision to grant the licence the "arm's length" approach between the new station and 98FM did not appear to be maintained.
He said Mr Kenny's solicitor had written to say that Mr Kenny had " conducted himself with the utmost propriety and impartiality". Yet Mr Reynolds said his questions were not answered.