Goodman 'duped' on Coolamber land deal

Mahon Tribunal: Beef baron Mr Larry Goodman was "duped" in a land deal in which he paid the stamp duty twice, he has told the tribunal.

Mr Goodman also said he was "manipulated" out of a profit on the deal, involving land at Coolamber, near Lucan.

But according to Mr Goodman, this deal was "just another situation" where people tried to exploit the business difficulties in which he found himself in the early 1990s, when his companies were placed in examinership.

At the suggestion of former Fianna Fáil TD, Mr Liam Lawlor, the businessman advanced over £400,000 to buy the Coolamber land and cover ongoing costs from 1987 on. Mr Lawlor promised him a half-share of the profits when the land was developed, he said, but instead he was left almost £160,000 short.

He never had any ownership interest in the land: "I did a simple transaction to provide bridging finance, and expected to get my money back. I don't know anything about planning and I had nothing to do with it."

Asked about his lack of detailed knowledge of the deal, he explained that it "paled into insignificance" beside his general business dealings. At that time, his companies were exporting to 77 countries and their total exports were 3.5 times Ireland's exports.

However, in August 1990, "everything was transformed". Iraq invaded Kuwait and one of his main bankers told the company it was calling in all its exposure. He then had to notify his other 33 banks.

"Until that moment, we had had 36 years of uninterrupted growth, and profits. We had a very good rapport with our banks and suppliers," Mr Goodman explained. From being the State's largest exporter, the group now faced into "serious problems".

Mr Goodman said he didn't want to go into examinership. However, two of his Irish banks were pressing for a receiver to be appointed. "The receivers were waiting on the sidelines with their tongues hanging out like panting dogs waiting to get their arms around this and break it up."

He agreed "reluctantly" to the appointment of an examiner. This was a "nightmare period" for him. Competitors started "having a go" at the Goodman group, saying farmers would not be paid and "cajoling" customers away from the company, he said.

Then, in 1991, came the "scurrilous" World in Action TV programme on his businesses. The Dáil then set up the beef tribunal, and this consumed all his attention. According to Mr Goodman, the people behind the Coolamber land operated in a way that suited their own objectives.

They were just "one of many" to do so. In the circumstances, however, this activity was "of insignificance" to him. He didn't care if people made money from the deal so long as he got what had been agreed. He didn't begrudge people a profit; however, those behind Coolamber had manipulated the deal so as to take the asset away at a price that wouldn't give him a profit.

"It was just another example of when we were up to our eyes in trouble and people were trying to exploit the situation."

Mr Goodman said he was owed £157,000, made up of £50,000 he had paid to Mr Lawlor, interest payments and the stamp duty. "That apparently had already been paid, somebody was duping us, trying to charge us twice for it." In 1995, Mr Lawlor told him he could get the money if Mr Goodman abandoned legal proceedings against solicitor Mr John Caldwell, who by this stage had moved ownership of the land offshore.

Mr Lawlor told him he was in "terrible financial trouble" and was going to be evicted from his home. After "a lot of soul-searching", Mr Goodman agreed, provided his (Mr Goodman's) solicitor, Mr Noel Smyth, and his accountant consented, but the proposal was not proceeded with.