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Cork developer Owen O'Callaghan said this morning the late Liam Lawlor refused to accept a cheque from him written in his own name.

Mr O'Callaghan told the Mahon tribunal he refused to give the Fianna Fáil TD cash and argued with for 12 months or more before agreeing to pay him with a cheque written to cash.

The tribunal is currently questioning Mr O'Callaghan as part of the Quarryvale II module, an investigation into allegations of corruption surrounding the rezoning of land on which the Liffey Valley Shopping Centre is built.

The tribunal heard Mr O'Callaghan gave Mr Lawlor two payments, one of £10,000 in September 1994 and one of £20,000 in 1995, for work he carried out to support the Quarryvale development, including putting him in contact with local community groups. Both cheques were made out to cash.

Mr O'Callaghan said he was surprised to be asked for a cheque for cash and refused to make it out, but finally agreed.

"I was asked so many times for it, I eventually gave it to him," Mr O'Callaghan said.

He said he assumed Mr Lawlor was trying to avoid tax. He did not discuss the matter with lobbyist Frank Dunlop and did not consider approaching then taoiseach Albert Reynolds about it.

Judge Gerald Keys asked Mr O'Callaghan if he was afraid of the consequences to his project if he did not comply with the way in which Mr Lawlor wanted to be paid. Mr O'Callaghan said he was.

"My understanding is that Mr Lawlor was in a very strong position in a sense from a political point of view and could influence people obviously," the Judge said.

"So I take it then you found it very difficult not to meet, or a least meet him half way...?"

"Yes," Mr O'Callaghan said.