Reynolds-Motorola rumour 'mentioned twice' by Lowry

A rumour that the former Taoiseach, Mr Albert Reynolds, made an arrangement with Motorola that it would get the State's second mobile phone licence was repeated by Mr Michael Lowry on two occasions, the tribunal was told.

Mr John Coughlan SC, for the tribunal, also said that Mr Mark FitzGerald, the auctioneer and Fine Gael activist, had told the tribunal that Mr Denis O'Brien told him during a meeting in the Shelbourne Hotel that Mr Reynolds was "in line for a payoff" if Motorola got the licence.

Mr Coughlan said the tribunal had no basis for thinking that Mr Reynolds had behaved inappropriately in any way.

Mr FitzGerald has told the tribunal in a statement that he was a member of the committee which was organising a fundraising golf classic for Fine Gael in the K Club.

In August 1995 he was telephoned by Mr O'Brien, who asked could they meet in the Shelbourne for a coffee. Mr O'Brien, during the meeting, told him he was bidding for the second mobile phone licence but was "facing an uphill struggle". He also said there were rumours that Mr Reynolds was in line for a payoff if Motorola got the licence.

Mr FitzGerald said Mr O'Brien told him he wanted to raise his profile with Fine Gael and had heard about the golf classic. Mr O'Brien has told the tribunal that he does not recall mentioning Mr Reynolds or Motorola. Mr FitzGerald said he had told Mr O'Brien he believed it would be unwise for him to get involved but that if he wanted to he should contact the late Mr David Austin.

Mr FitzGerald said he later met the Fine Gael general secretary, Mr Jim Miley, and told him he didn't think Fine Gael should accept a donation from Mr O'Brien. Mr Miley has said he does not recall this conversation.

At a subsequent meeting of the golf classic organising committee, Mr Austin said he wanted to thank Mr FitzGerald for introducing Mr O'Brien to him and that Mr O'Brien was offering to sponsor the event. A letter was subsequently sent to Mr O'Brien thanking him for the £4,000 sponsorship. It was signed by Mr Phil Hogan TD, but a secretary in Fine Gael said she thought the letter was dictated by Mr Austin.

Mr Coughlan said the rumour concerning Mr Reynolds was mentioned twice by Mr Lowry. Once was in late October 1995. Also in the Dáil in December 1995, Mr Lowry said that there were widespread rumours that a senior member of the previous government and a major player in the industry had a deal in relation to the licence.

Mr Reynolds last night described as "outlandish and outrageous" any suggestion that he was in line for a pay-off. Mr Reynolds said he first became aware that his name was to come up at the tribunal on Tuesday. "I was shocked. I couldn't believe it," he said. He added he was delighted that the tribunal made it clear during the hearing it had no basis for thinking he had behaved inappropriately in any way.