Bribery proposal a dead duck - counsel

The proposal that Mr Michael Bailey of Bovale Developments would, through bribing Mr Ray Burke, procure the rezoning of Murphy group lands in north Co Dublin "was a dead duck which never actually flew", Mr Colm Allen SC told the Flood tribunal yesterday.

Mr Allen, continuing his cross-examination of Mr James Gogarty, described a letter outlining the proposal to "procure planning permission" as simply a discussion document.

Under this proposal Mr Michael Bailey would have been granted a half-share in the lands in return for procuring planning permission.

But Mr Allen argued that the fact that this half-share had never been given to Mr Bailey, that in fact Mr Bailey bought the lands, and that they were largely not rezoned, meant that that the proposal had been dropped.

Reading from a copy of the letter to Mr James Gogarty from Mr Michael Bailey and dated June 1998, Mr Allen said the letter contained two proposals. "The first proposal was the purchase proposal, isn't that correct?" Mr Gogarty agreed.

Mr Allen said the second proposal contained in the letter was a "participation" proposal. He read: "As an alternative to the outright purchase proposal above, I am prepared to deal . . . on the basis that I will be given a 50 per cent share in the ownership of the said lands in exchange for procuring planning permission and building by-law approval".

Mr Allen put it to Mr Gogarty that the participation proposal as designated in the letter "was never proceeded with. Isn't that correct?"

When Mr Gogarty did not immediately agree, Mr Allen reminded him that it was his evidence that an agreement for the sale of the lands outright was agreed in the offices of Mr Denis McArdle, a solicitor, in November 1989.

Mr Allen said Mr Gogarty knew "full well precisely what I am asking and you don't want to answer it. You know it to be a fact that the proposal involving the procurement . . . of planning permission and building by-law approval was not proceeded with. It was a dead duck." Mr Allen added: "It never flew!"