THE IRTC will be hoping the new national radio station will not meet the same fate as its predecessor, Century Radio, which was beset by problems from its first day of broadcasting.

When it collapsed, it had lost about £7 million over 26 months. One station source said at the time it was spending £3 for every £2 earned.

Century, whose investors included the entrepreneur, Mr Oliver Barry, singer Mr Chris de Burgh and broadcaster Mr Terry Wogan, as well as London's Capital Radio, began broadcasting in September 1989.

Despite a £400,000 advertising campaign to promote the station in the weeks before it opened, there was confusion about what wavelength it would broadcast on.

It had difficulty hitting its listenership target and advertising revenue was closely tied to those figures. When its availability around the country fell far short of projections, Century's advertisers began to turn off.

Just before it went off air it had 18 per cent of the national listenership. It had forecast it would win between 25 per cent and 30 per cent.

Century began cutting staff just three months after it first broadcast. Jobs and pay cuts sparked industrial disputes and, at one stage, there was no news or current affairs coverage for five days.

But it was Century's failure to win the confidence of financial institutions which scuppered it. In addition to their initial investment, investors - including Mr James Stafford, who comes from a wealthy Co Wexford shipping family - were also asked to invest a further £1.5 million before the station's launch.

In 1990, London's Capital Radio came on board with a £1.8 million loan which helped win support from institutions, which subscribed again. A total of £3:2 million was raised. The resulting relaunch failed to make a significant difference.

In November 1991, the station sought a further £1.5 million, following the departure of Mr Oliver Barry. The refinancing deal which entailed the sale off Mr Barry's stake to Mr Stafford and to Capital Radio (which had 30 per cent), collapsed and the directors decided to liquidate.