THE interest free loan from Dunnes Stores to former Minister, Mr Michael Lowry, for construction of a storage facility was to be set off against "imaginary profits" made by Streamline Enterprises, the tribunal heard yesterday.
Mr Michael Irwin, former chief accountant for Dunnes Stores, told Mr Den is McCullough, counsel for the tribunal, that the original deal was for the company to make modest profit from its refrigeration contract with Dunnes Stores, and Mr Lowry would get a bonus separately from Mr Dunne.
Mr Irwin defined a modest profit as "between £20,000 and £50,000 a year", Of Mr Lowry's bonus. he said he did not recall any figure being mentioned,
Mr Dunne told Mr Lowry that if he achieved the savings throughout the State he already had in Munster "he [Mr Dunne] would make him a very wealthy man".
The storage facility was for old refrigeration units which could be reconditioned or used for parts. Asked how the loan for this was to be paid, Mr Irwin said that Streamline was to be allowed to make a modest profit and this would be set against the loan, which was about £200,000. "The imaginary profit that was being, made was about £50,000 a year over four years and that was written off against the loan," he said. "I agreed with Oliver Freaney [Dunnes Stores' and Streamline's auditors] that this be carried out in both books."
Earlier, he had explained how Dunnes could control Streamline Enterprises to such an extent as to determine the amount of profit. He met Mr Dunne and Mr Lowry in 1988, and Mr Dunne explained what had been agreed between them. He would supply and maintain refrigeration for the stores. "At that stage I don't think he had a company," he said.
Dunnes Stores had been spending a lot of money on refrigeration, and Mr Lowry said he could save them 30 per cent on maintenance and provide equipment at cost. To protect Dunnes Stores and ensure the equipment was at cost, Mr Irwin insisted that Mr Lowry use the same accountants, Oliver Freaney and Company, and that he have the right at 24 hours notice to inspect his books, Mr Irwin offered to put the Dunnes Stores computer team at Mr Lowry's disposal.
Mr Irwin described this control as "tantamount to total control".
Originally, Mr Lowry had provided refrigeration for the Monster stores but had proved so successful he was offered the contract for outlets throughout the State. At the meeting at which this was agreed it was also stated that Streamline was to make "a modest profit" and Mr Lowry would be paid bonuses personally.
Mr Irwin confirmed previous evidence about payments made to Mr Lowry, through cheques made out to "cash" and intended as Christmas bonuses for his staff. Asked about a cheque made out for £50,000 to Streamline Enterprises, he said he did not know what it was for. He bad never received an invoice for it.
He was adamant that Mr Lowry's position as a TD had no hearing on the way he was treated by Dunnes Stores and Mr Duane personally. No political favours were extended nor were any expected. "It was a commercial deal. We were winning hands dawn."