The co-founder of Century Radio, Mr James Stafford, wanted Mr Ray Burke to "wipe out" RTE, the former minister for communications has told the tribunal.
However, Mr Burke said the Government never contemplated "that kind of over-the-top action". He said there was "no question" of the Government abolishing 2FM. The matter was never discussed at Cabinet nor had he suggested it, as Mr Stafford has claimed.
Century documents dating from this period in 1990 contain references to RTE being forced to sell 2FM on the open market, and to a possible merger of Century and 2FM. In May 1990, Mr Burke told the Dail it was questionable whether the format of 2FM represented the best use of resources.
Mr Burke said the merger proposal "never happened". "I don't know where the proposal came from. It had nothing whatsoever to do with me."
According to the witness, Mr Stafford had a "complete misconception" in thinking the minister was prepared to divert part of RTE's licence fee income towards the commercial sector.
In February 1990, the Fine Gael spokesman on communications, Mr Jim Mitchell, claimed Mr Burke was about to do this.
Yesterday, however, Mr Burke said there was no such proposal "at that stage". No such assurance had been given to Mr Stafford, or was contemplated.
Mr Stafford refers to a proposal to divert licence fee in a letter marked "private and confidential" which he sent to Mr Burke in April 1990 and copied to the then Taoiseach, Mr Haughey. Mr Stafford has supplied the tribunal with the letter but no copy appears in departmental files.
Mr Burke said he had no idea what had happened to the letter. Mr Hanratty SC said Mr Stafford appeared to be "demanding" and "petulant" in the letter, as if the minister had promised something but not delivered it.
Mr Burke said those were counsel's terms. Mr Stafford was under "considerable mental pressure" because of Century's difficulties.
