Ex-minister was told he would be made wealthy

MEETING he had with Mr Ben Dunne in 1989 had since had a "devastating impact" on his life, Mr Michael Lowry TD told the tribunal. The former minister - who outlined details of the relationship between his company, Streamline Enterprises, and Dunnes Stores - said that Mr Dunne told him he would make him a "wealthy man."

Giving evidence for the second day yesterday, Mr Lowry said that at a meeting in early 1989 Mr Dunne told him he believed savings could be made in refrigeration and that he - Mr Lowry - was the person who could make them.

Mr Lowry had previously carried out work for Dunnes Stores, first as an employee of Butler Refrigeration and, after he left that company, as a consultant when Dunnes opened stores in Northern Ireland and Britain.

Mr Lowry said he pointed out to Mr Dunne that in effect he, was being asked to do the business which had been done by his former employers, Butler Refrigeration, and that that would be difficult for him.

"Many conversations in 1988 and 1989 I wouldn't be able to remember, but I remember this conversation because it was one which has had an impact on my life then and, unfortunately for me, it has had a devastating impact since," said the witness.

"But at that particular time I recall that he said to me, 'I'll make it a lot easier for you, because he said, The facts are that I've made a decision to remove the contract from the present contractor and I'm giving you first option on it and if you're not prepared to take that option then I'll find someone else to do it, and he mentioned another company."

Mr Lowry said he went back to Mr Dunne and said he was not in a position to "jump in at the deep end" and take responsibility for all 90 stores in the Dunnes chain. He said he would start by looking after the stores in Munster - numbering about 16.

By that stage he had already established his company, Garuda Ltd, which was trading as Streamline Enterprises. The company had done some work for Dunnes Stores the previous year.

The witness said he was able to give a "definite commitment" that he could achieve substantial savings for the company, and he had supplied documentary evidence to the tribunal that on maintenance alone he had saved Dunnes Stores about Pounds 800,000 in three years.

Asked how he was to be paid for the work being done, Mr Lowry said: "Mr Dunne said clearly that he would put my company in a small annual profit and that he would reward me by way of bonus based on performance and based on the savings that the company made at that particular time."

Mr Den is McCullough SC, counsel for the tribunal, said the evidence of Mr Michael Irwin the former financial controller of Dunnes Stores, had been that Mr Dunne told Mr Lowry he would make him a "wealthy man." Was that correct?

Mr Lowry: "Yes, he did make that statement".

Mr McCullough said there seemed to be a distinction made between Mr Lowry and his company. The company would make a small profit, but he was to be made a wealthy man. Wasn't that right?

Mr Lowry said no, he would say it was a combination of both. "My company would be successful, it would have a small profit, a reasonable profit, and I would become a wealthy man. Wealth is relative and I don't know what be meant by 'wealthy man'."

Mr McCullough said, it seemed clear from Mr Lowry's evidence, and from that of Mr Irwin and Mr Dunne, that it was not intended that Mr Lowry would become wealthy from the profits of his company. Wasn't that right?

Mr Lowry: "I wouldn't say that, don't think that. What they were saying was that as an individual, who had at that particular stage something like 19 years' experience in the refrigeration industry, that I would be rewarded for the expertise and for the skill and for the technical advice and for the professional advice as a refrigeration engineer that I would bring to that company.

Mr McCullough: "But you would be rewarded outside the framework of the company and outside the company books. Is that correct?"

Mr Lowry: "No, that was never formally stated and I never got that meaning from it."

Counsel again suggested that there was a distinction being made between the company, which was to make a small profit, - and Mr Lowry, who was to become a wealthy man.

Mr Lowry said Mr Dunne would be aware of the fact that he would have had a very large influence on the ability of the company to deliver what Mr Dunne had requested. Mr Dunne was looking to him to put together the team that was required and to show the leadership and motivation that was needed.

Mr McCullough: "He was seeking to obtain from you those skills and expertise otherwise than as an employee of your company, isn't that right? He was looking to get those skills and expertise from you in some independent and separate way apart from the work that your company would do for him. Is that not correct?"

Mr Lowry: "No."

Asked by the chairman, Mr Justice McCracken, if he was then saying that Mr Dunne was seeking to do this through Mr Lowry as managing director of the company, the witness said it was not something they had ever gone into in any depth. "I would say, Mister Chairman, a combination of both."

Asked what his salary was as managing director of Streamline Enterprises, Mr Lowry said that in 1989 it would have been about Pounds 10,000. It had since risen to between Pounds 30,000 and Pounds 35,000. He was treated by the company as an employee and paid PAYE.