Former builder Mr Batt O'Shea sold a four-acre plot of land in north County Dublin to the Murphy Group for £65,000 in 1989, but only months later Mr Michael Bailey had to pay £400,000 for it, the Flood tribunal was told yesterday.
The 82-year-old Mr O'Shea answered questions about the sale of the land at Poppintree and was incredulous when it was suggested that Mr Bailey had to pay £400,000 to the Murphy Group to buy the four acres.
"£400,000? Well, it was a pity he didn't give it to me. £400,000? Is that right?" he asked, and went into a fit of laughter.
Ms Patricia Dillon SC, for the tribunal, said Mr Bailey had given evidence at the tribunal that he had had to pay £400,000 in 1989. That was Mr Bailey's calculation of it.
Mr O'Shea said the whole farm in Finglas was not worth £400,000.
Ms Dillon said that her tribunal colleague, Mr John Gallagher SC, wanted to know why Mr O'Shea was laughing at the figure of £400,000.
"Because I think it is ridiculous. I mean, if any man saw the place, be Christ, they would give nothing for it," Mr O'Shea said. The Poppintree House had water coming in the roof.
Ms Dillon said Mr Bailey placed a high value on it as he wanted to use it as a yard. Mr O'Shea said Mr Bailey had no notion of using it as a yard, as there was not a builder in Dublin who had their own joinery works.
Counsel said Mr Bailey had said that Poppintree was essential to closing the entire deal with the Murphy companies. She asked if Mr Bailey had tried to buy the land from Mr O'Shea.
"He did not," said Mr O'Shea. "And if he did, he'd have got it and he wouldn't have had to pay £400,000."
Ms Dillon said that there was a fire at Poppintree House after Mr O'Shea had sold the land. Was Mr O'Shea asked in 1992 to be a witness in arbitration proceedings between the Murphy Group and Mr Bailey about the value of the land?
Mr O'Shea said that was right. It was the first time he had met the Bailey brothers. They were "two decent fellas."
Earlier, Mr O'Shea said he was negotiating with Dublin Corporation to buy the four acres for £80,000 but this fell through. He agreed with Ms Dillon that this might have been around November 1987, although he said all the dates confused him.
After that he went to Mr James Gogarty to ask if he would be interested in buying it, and eventually Grafton Construction, a Murphy Group company, bought it for £65,000 and the contract was signed on April 20th, 1989.
Mr O'Shea said he talked to Mr Gogarty about the land at Poppintree and asked if he would be interested. There were a few meetings. Then Mr Gogarty said he had a problem with fencing on some lands and asked whether Mr O'Shea could introduce him to Mr George Redmond, the local authority official.
Mr O'Shea said the meeting was arranged and he and Mr Gogarty met Mr Redmond in the Dublin County Council offices in O'Connell Street.