Profit was not expected in three years

None of the three main applicants for the national radio franchise would have been in profit after three years, the tribunal has been told.

Mr Paul Appleby, a former assistant principal with the Independent Radio and Television Commission, said his analysis of the financial projections of the different applicants had shown that none was "robust enough" to achieve profit within three years.

Mr Des O'Neill SC, for the tribunal, said three years was the time one would expect a new business to begin making a profit. Mr Appleby said this would depend on the individuals involved. Mr O'Neill pointed out that RTE and Department of Communications officials agreed on transmission charges on January 11th, 1989, the day before applicants for the radio licence made oral presentations to the IRTC. Was the Commission aware of this agreement for a transmission charge to Century of £692,000?

The witness said he had no recollection of figures being available to the commission at the time of the hearings. He could not recollect being aware that the chairman of the IRTC, Mr Justice Henchy, and the secretary, Mr Sean Connolly, met the promoters of Century on the day after the oral presentations.

Mr Appleby described some of RTE's charges as excessive. The commission decided the level of charges was a matter to be determined by the minister for communications, Mr Ray Burke.

At this point, Mr Justice Flood asked whether the commission had access to financial advice before asking the minister to set the level of charges by directive. Or did the commission members "just take a view?"

The witness said the commission was anxious to establish a national radio service. That was the reason it was established. "We considered, internally, that the transmission charges needed to be reduced."

It was a "source of comfort" to the IRTC that the Independent Broadcasting Authority, the foremost authority in the UK, supported the Century estimate.

Mr Appleby said the IRTC undertook an independent assessment and came to a figure "not substantially different" from Century's.

Mr David Keane, for RTE, said there was a coincidence of phrasing and terminology in the IRTC's memo seeking a directive and a letter on the same subject written by Century boss Mr James Stafford.

The witness said he accepted that the IRTC memo "took account" of what Mr Stafford had said. The commission had not independently verified Mr Stafford's assertions, he said.

He told Ms Emily Egan, for the IRTC, that he was not aware of money being advanced in return for the granting of a licence, as had been alleged. He had never heard such a rumour.