Burke files may go to tribunal after fresh allegations

The Moriarty Tribunal may be asked to investigate the files relating to the granting of exclusive MMDS licences by Mr Ray Burke to Princes Holdings Ltd, a joint venture company in which the Independent Newspapers group has a 50 per cent interest.

The prospect of the files being sent to one of the two sitting tribunals was accepted by the Taoiseach late last night after the Tanaiste, Ms Harney, told him from London that new allegations now in the public domain should be fully investigated "and no option should be ruled out in establishing the full facts".

After dramatic disclosures in the Dail, where Mr Ahern gave his most unconvincing performance since he became Taoiseach almost a year ago, three new sets of developments were posing problems for the Coalition partners.

Ms Harney said she was informed by Mr Ahern only last Tuesday that a payment of £30,000 was made by Rennicks Manufacturing Ltd, a subsidiary of Fitzwilton Plc, to Mr Burke in June 1989 and that the £10,000 which Mr Burke gave to Fianna Fail came from that source. Mr Ahern had earlier informed the Dail that he first became aware of the Rennicks donation while the party was preparing an affidavit for the Flood Tribunal after St Patrick's Day.

Mr Ahern also admitted late last night that he had a private meeting in the Taoiseach's Office with Mr Dick Spring on September 4th last, two days before Mr Burke made his Dail statement on the £30,000 cash payment in two brown envelopes from Joseph Murphy Structural Engineers. He said he had no recollection, however, of being informed by Mr Spring, then leader of the Labour Party, of the contents of an anonymous note alleging that Rennicks paid £30,000 to Mr Burke.

The Taoiseach had told the Dail that if Mr Spring said that he referred it to him, "I don't have any recollection, but I accept that".

Introducing this matter for the first time, Mr Ruairi Quinn said in the Dail that the note alleged that Rennicks applied to the IDA for substantial grants for the manufacturing of road signs prior to the 1989 general election. They saw the then minister for industry and commerce, Mr Burke, to brief him about the application.

The Taoiseach's spokesman confirmed late last night that Rennicks had received grants from the IDA for capital, research, training and other purposes. The first grant, for £22,448, was paid in 1987. It increased to £67,061 and £131,435 in 1988 and 1989 respectively. Mr Burke was in office from November 1988 to July 1989, but ministerial approval would not have been required for the issuing of the grants, he said. The highest IDA grant to Rennicks was in 1996 - £326,496.

The files relating to the granting of exclusive MMDS (television signal distribution) licences to Princes Holding Ltd by Mr Burke have been sought by the Department of Public Enterprise from the Independent Telecommunications Regulator. They will be examined by civil servants in the coming days.

A spokesman for Mr Ahern said if any irregularities were found the Attorney General would be asked to examine them. He would then advise whether they should be referred to the Moriarty or Flood tribunals.