Baldoyle racecourse rezoning claims to be investigated

The Mahon tribunal is to investigate claims that seven councillors were paid money to secure their support for an unsuccessful attempt to rezone land at the former Baldoyle racecourse in north Dublin in 1993.

The tribunal is also to examine the ownership of the company behind the rezoning bid. It has been alleged that the company, Pennine Holdings, was part- owned by lobbyist Frank Dunlop.

At the start of a new module yesterday, the tribunal heard that Mr Dunlop will give evidence that he paid £1,000 to councillors Jack Larkin (FF), Cyril Gallagher (FF), Tom Hand (FG), Tony Fox (FF), Liam Cosgrave (FG) and Don Lydon (FF).

He will also say that a composite payment of £5,000 given to Independent councillor John O'Halloran covered support for the Baldoyle rezoning.

Counsel for the tribunal Des O'Neill SC, said that councillors Larkin, Gallagher and Hand were dead and that the others have denied they received corrupt payments from Mr Dunlop.

In the early 1990s the Baldoyle lands were owned by developer John Byrne.

Mr O'Neill said that in 1991 Pennine reached an agreement on an option to purchase 250 acres. Under the deal Pennine were responsible for seeking rezoning of this land as well as an additional 150 acres retained by Mr Byrne for development as a golf course and hotel.

He said the tribunal would be examining the role played by former Fianna Fáil politician, the late Liam Lawlor, in attempts to rezone the land.

He said Mr Dunlop will say that the genesis of the idea for rezoning the Baldoyle lands had been Mr Lawlor's.

Mr O'Neill said that information available suggested that Mr Lawlor had been involved in all aspects of the rezoning attempts, including drafting motions to be put in the names of others, attending strategy meetings and selecting professional advisers.

Mr Lawlor told the tribunal prior to his death that he had arranged an introductory lunch, which was attended by himself, Mr Dunlop and Mr Byrne, as well as developer Brendan Hickey and David Shubotham, a director of Davy Stockbrokers.

Mr O'Neill said Mr Hickey and Mr Shubotham, through a company called Davy Hickey Properties Ltd (DHPL), agreed to involve themselves in the Baldoyle project.

"It appears that they provided the money to Mr Dunlop which Mr Dunlop subsequently paid to councillors for their support. Mr Dunlop says that he did not account for this expenditure to DHPL and that its principals were unaware of the fact that he had used this money to bribe councillors," he said.

Mr O'Neill said that there was disagreement over who had owned Pennine Holdings.

Mr Byrne has said that he believed DHPL owned it. However, the principals of DHPL say it was owned by Mr Dunlop.

Mr Lawlor has said that Mr Dunlop owned 10 per cent and later took full control after DHPL disposed of their interest.

Mr Dunlop has said that he did not know who was the beneficial owner of Pennine up to December 1993.

Mr Hickey has said that DHPL carried out a feasibility study into the development of the land and that he had no other involvement .

Mr Shubotham has said that in the light of issues identified in the study he decided not to proceed any further.

Mr O'Neill said that Mr Lawlor had inferred that the ending of DHPL's involvement was linked to the controversy surrounding the floatation of Irish Sugar.

Davy were the Government's stockbrokers and there was controversy when it emerged that its directors and associated companies controlled shares worth £19 million after the sale.

Mr O'Neill said that there had been highly critical press coverage of Davy's directors and that there were references to some of these, as well as Mr Dunlop, standing to make £10 million from the Baldoyle rezoning.