Mr Michael Bailey described an offer he made to the Murphy group in 1990 to sell them half the north Co Dublin lands for £8 million as an "outrageous suggestion".
He had acquired the lands from the Murphy group in December 1989 for £2.3 million but, during a subsequent meeting in August 1990, attended by his brother, Tom, Mr Frank Reynolds and Mr Gogarty of the Murphy group in the Swiss Cottage pub in Santry, he made a new offer.
"We had discussions about the land in general and there was a suggestion that they may buy it back, part of it back," he told the tribunal.
Mr Desmond O'Neill SC, for the tribunal, asked: "You then valued the property at £16 million in total. Can you indicate what change, if any, had taken place from the 19th December, 1989, when you signed the contract purchase, and the date in August of the following year when you made that suggestion."
Mr Bailey stated that he "asked for £8 million for the 50 per cent interest but obviously not with a view to obtaining it". He added that there had been an "unbelievable pickup in the demand for property" during the period.
"I didn't for once think that I was going to obtain the £8 million," he said. "If I had a chance to take the £8 million, I would have taken the right hand off them to get it. I threw out a figure of £8 million to see would I catch a sprat and, if I caught a sprat, well and good, he may turn into a fish." The offer arose during discussions over the Poppintree House property, which was part of the Murphy lands. It had been damaged in a fire believed to be started by vandals in March 1990. Mr O'Neill said that consequently Mr Bailey wanted the property rebuilt and "reinstated" by the Murphy group at a cost of £400,000.
"On the other side of the coin, the Murphy interests were saying they only paid £65,000 for the land and buildings and they were unwilling to reinstate or to spend that money on it," Mr O'Neill said.
"Under my contract I was entitled to full reinstatement," Mr Bailey replied.
Mr O'Neill said that despite the issue remaining unresolved, the sale was completed. He asked Mr Bailey if he could "fix with any certainty" the date when he originally agreed a contract for the lands with Mr Gogarty.
"It was concluded the day that I gave him his £50,000 cheque in the Royal Dublin Hotel, that was the 24th of November, 1989," he said. When questioned further, he said it was probably the November 23rd, 1989.
"The only reason I believe it is because I paid him his first cash payment of £50,000 and I gave him two post-dated cheques. That is the reason I can identify that that was the day."