Order halts award of radio licence

An interim order preventing the award of a "youth" radio licence for Dublin to Spin FM, backed by a consortium including Mr Ossie…

An interim order preventing the award of a "youth" radio licence for Dublin to Spin FM, backed by a consortium including Mr Ossie Kilkenny, was granted by the High Court yesterday.

Mr Justice O Caoimh also granted leave to Hot Radio Company Ltd, trading as Pulse FM, which is associated with Mr Paul McGuinness, to challenge the decision of the Independent Radio and Television Commission to award the licence to Spin FM for Dublin in the 15-34-years market.

The leave and interim injunction, which applies to Monday next, were sought by Mr Paul Gardiner for Pulse, against the IRTC. Maypril Limited, trading as Spin FM, is a notice party in the legal proceedings expected to delay the licence award.

Mr Gardiner told the court the IRTC had announced its decision to award the licence to Spin FM on October 11th. In awarding the licence to Spin FM, the IRTC had breached the provisions of the Radio and Television Act, 1988, in particular Section 6 of that Act which stated that no person should have control or a substantial interest in an undue number of sound broadcasting services. He said Mr Denis O'Brien, who owns 25 per cent of Spin FM, was also involved in the radio stations, East Coast Radio and 98FM.

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The IRTC was not entitled to relax its policy in relation to cross-ownership and had acted in excess of its jurisdiction and in breach of fair procedures, Mr Gardiner said. The decision to grant the licence was perverse and in breach of the 1988 Act and the criteria laid down in the IRTC tender document.

Counsel said the IRTC had also refused to give reasons for its decision. He complained that, despite that refusal, a member of the IRTC, Mr Colm Kenny, had written a newspaper article related to the award of the licence.

It had been stated Mr Kenny was writing in a personal capacity but it was not appropriate for him to be writing about the award of the licence in any event in circumstances where the IRTC had refused to give reasons for it.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times