Mr Ray Burke assured senior officials from the Bank of Ireland, bankers for the troubled Century Communications, that he would cap the advertising of RTE, at a time when he was minister for communications, the tribunal heard.
Financial troubles were looming over Century at the end of 1989. On December 19th of that year Mr Oliver Barry and Mr James Stafford had two meetings with Mr Burke, Mr Pat Hanratty SC, for the tribunal, said. "It appears from correspondence that Mr Burke gave an undertaking to Mr Stafford and Mr Barry that he would cap RTE's advertising revenue by 50 per cent," Mr Hanratty said.
At the time, the Bank of Ireland, which was the company's banker, had decided to call in the loan from Century Communications.
"It also appears from the correspondence that Mr Burke received a deputation of senior officials from the Bank of Ireland and gave them an assurance or undertaking that it was his intention to cap the advertising of RTE," Mr Hanratty added.
The tribunal had not yet been able to find a minute of this meeting but it did appear that the minister did attend, either with or without a civil servant present, a meeting with Century's bankers on January 2nd, 1990.
On January 3rd, 1990, Bank of Ireland wrote to the directors of Century cancelling its arrangements.
On February 26th of the same year, Mr Stafford wrote to the minister, with a copy to the Taoiseach, Mr Charles J. Haughey, referring to the meeting they had with him and the assurance of the 50 per cent cap on RTE. He said he was concerned the solution had not been implemented.
Mr Stafford wrote to the minister again on April 18th, 1990, in which he said the solution the minister was now proposing would result in RTE's advertising revenue being capped by only 25 per cent.