Hearing today into tribunal costs

The Department of Finance and lawyers representing the "public interest" are to make submissions at a hearing today on legal costs arising from the first five years of the planning tribunal's work.

Former minister Mr Ray Burke, showbiz impresario Mr Oliver Barry, builders Brennan and McGowan and developer Mr Michael Bailey are among those who are expected to argue at the hearing that they should be awarded their multimillion euro legal costs in relation to the tribunal.

They are among 16 parties against whom findings of corruption or a failure to co-operate were made in two interim reports published by the former chairman of the tribunal, Mr Justice Flood. Judge Mahon has asked these parties to make submissions "on the principles which should be applied by him in the exercise of his discretion" when dealing with their applications for costs.

Mr Justice Flood was due to decide on the costs issue last year, but the scheduled hearings were cancelled at short notice and he retired shortly after. At the time, he vehemently denied claims that he had struck a deal with Mr Burke's then legal team to cover the former politician's legal costs.

Mr Joseph Finnegan, who was Mr Burke's senior counsel at the time, has supported Mr Justice Flood's version of events. Mr Finnegan, who is now president of the High Court, wrote to the tribunal last year saying no understanding was reached in relation to Mr Burke's legal fees and no representations or assurances were made on the issue.

Mr Justice Flood's departure caused considerable instability around the tribunal. Legal experts warned any decision on costs by a successor, who would not have heard the evidence, could be open to challenge.

As a result, the Government introduced legislation aimed at proofing any decision made by Judge Mahon against such a challenge. This only completed its journey through the Oireachtas last month.

Judge Mahon has the power to withhold costs from those who failed to co-operate with the tribunal. Further, he could levy part of the tribunal's costs on parties if they are shown to have delayed its work.

However, any such decision is certain to be challenged in the courts. Both Mr Burke and businessman Mr Joseph Murphy have already started legal proceedings aimed at forcing the tribunal to award them their costs.

The tribunal has received legal bills amounting to more than €25 million from parties represented during hearings into the allegations of Mr James Gogarty between 1998 and 2002. The final total, when all bills are submitted, could be twice this.

While most of the hundreds of people who gave evidence to the tribunal will have their legal costs paid, some of the biggest bills have come in from parties who were found to have been involved in corruption.

Mr Burke's legal bill alone amounts to €10.5 million. Builder Mr Tom Brennan is seeking €2.6 million and Mr Barry €800,000. Details of the bills submitted by Mr Murphy and his companies, and Mr Bailey, have not yet emerged.

Counsel for the Department of Finance is expected to open today's proceedings, followed by lawyers representing the public interest. Lawyers for the 16 parties will then make oral presentations, although many have already filed written submissions.

Judge Mahon has allocated two days for the hearings, with the tribunal due to resume its hearings on Quarryvale on Wednesday.