Decision by O'Leary brings eight-year saga to an end

The decision by the businessman, Mr Dermot O'Leary, to abandon a legal action against the State over his dismissal from the chairmanship…

The decision by the businessman, Mr Dermot O'Leary, to abandon a legal action against the State over his dismissal from the chairmanship of CIÉ brings to an end a saga that recalls the controversial ministerial career of Mr Michael Lowry. Arthur Beesley, Political Reporter, reports.

The exposure of Mr Lowry's business relationship with the businessman Mr Ben Dunne was enough to bring his time in Cabinet to an end.

Soon after that came the exposure of the financial dealings of the former Taoiseach, Mr Charles Haughey, and those of many of the leading business figures of his generation.

Before any of those events, which led to two tribunals and the Ansbacher inquiry, Mr Lowry's arrival in Cabinet in the Fine Gael-led Rainbow coalition saw him attack alleged "cosy cartels" in the semi-State sector. These claims were never proved.

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Closely linked with Fianna Fáil, Mr O'Leary fell foul of Mr Lowry, who had responsibility for transport.

The High Court case arose from a shake-out of the CIÉ board in 1995, of which Mr O'Leary was chairman.

In the heated political atmosphere of that time, his departure from the position followed a meeting he had with Mr Lowry on April 25th, 1995. An agreed statement read to the judge yesterday said that the parties emerged from that meeting with "different understandings".

Before abandoning the case, Mr O'Leary had claimed he was wrongfully dismissed from his position as CIÉ chairman. He wanted to be reinstated to the position. The State argued he was not dismissed but had tendered his resignation to Mr Lowry.

Mr O'Leary, the founder-owner of a successful crane hire business, maintained his legal challenge against the State over his removal from the position for eight years before he withdrew it after talks between the legal teams for the two sides.

He will receive no damages from the State after yesterday's developments.

Mr O'Leary's membership of the Aer Rianta board also proved controversial.

If the CIÉ affair involved him in a confrontation with a Fine Gael figure, his directorship of the State airport authority brought conflict closer to his own political home.

It was Mr O'Leary who gave credence to unsubstantiated allegations that the Minister for Transport, Mr Brennan, had left unpaid a bill from Aer Rianta for cigars and bottles of brandy.

With the allegations under investigation, Mr O'Leary's intervention led to a meeting with the Taoiseach, Mr Ahern. Mr Brennan survived, with his plans to break up Aer Rianta intact. Mr O'Leary's term on the Aer Rianta board lapsed soon afterwards.

Some time earlier, Mr O'Leary was involved in a separate controversy when it emerged that he had organised private passage through Dublin Airport for his friend, the former Fianna Fáil TD, Mr Liam Lawlor.

Mr Brennan's Department has acknowledged the "valuable service given by Mr O'Leary to CIÉ and the other semi-State boards on which he served".

After years of legal activity, Mr O'Leary said afterwards that he was happy with the outcome.