A witness at the Flood tribunal yesterday said he was told the former Fianna Fail minister, Mr Ray Burke, was paid £35,000 by Mr Oliver Barry of Century Radio in return for putting a cap on RTE's advertising revenue.
Mr Patrick Taylor, the finance director until 1996 of Capital Radio in the UK - an investor in Century - said the suggestion about the £35,000 payment was made to him in late 1991 by Century's cofounder, Mr James Stafford. But Mr Taylor said it was just a "flippant comment". "It was simply a remark made during an extended discussion on a variety of issues," he said.
Capital, the biggest commercial broadcaster in the UK, invested over £1 million in the ailing Century operation in 1990.
Mr Taylor said he regarded a lot of what "went on in the past" before Capital invested in Century as "tittle-tattle" and "a matter for conjecture". "It was not of great importance to us."
The matter arose in the context of a sum of £40,000 Mr Barry was attempting to recover from the company.
Mr Barry said he was owed this in return for work done personally and by his staff on behalf of Century.
Mr Taylor asked Mr Barry to substantiate the claim, by stating what the money was due for and how much work had been done for it.
He said he never got any such information. He recommended Mr Barry bring the matter to the board, which decided in January 1991 that he should be paid.
Mr Taylor said the matter was raised in late 1991 by Mr Stafford. The discussion centred on the suggestion that the payment was made "to assist in work being done to change the legislation" [capping RTE's advertising revenue].
Mr Burke, who was minister for communications at the time, amended the Broadcasting Bill to provide for a cap on RTE's revenue and this became law in July 1990.
The measure, which was repealed several years later, assisted the commercial radio sector but caused serious financial problems in RTE.
When Capital invested, Mr Taylor believed Century was "unviable" in the medium term and would have to be "rebuilt".
Mr Stafford and Mr Barry, however, felt that the turnaround could happen more quickly, the witness said.
Mr Taylor said he was not aware that a third businessman, Mr John Mulhern, the son-in-law of Mr Charles Haughey, was also an investor in Century. This was not disclosed in the legal documents drawn up at the time of Capital's investment in the station.
In November 1991, Capital decided not to go ahead with a second planned investment in Century. Mr Taylor said the company was struggling financially and relations with the promoters were strained. Eventually, agreement was reached under which Capital would increase its stake above 30 per cent, but when the Independent Radio and Television Commission vetoed this proposal, Capital pulled out.
