Lawlor questions Gilmartin over Dublin plan

Mr Tom Gilmartin has conceded that politicians were not the main reason his plans to build a massive shopping centre in Bacheleor's Walk in 1989 were abandoned, the Mahon tribunal heard today.

Mr Gilmartin, who was acting as an agent for British property company Arlington Securities in Ireland, accepted under cross-examination by Mr Liam Lawlor today that political "roadblocks" were not the primary reason the project failed.

The tribunal has heard previous allegations from Mr Gilmartin that political interference, demands for money, a hostile atmosphere in the planning process and the emergence of "shadowy figures" contributed to the ambitious development foundering.

However, he said today the two primary reasons were the increase in property prices after media leaks about Arlington's intentions and wrangling over the building of a CIÉ bus station within the complex.

He said Arlington had been using a number of front companies to buy property at the 11-acre site along the north quays of the River Liffey to disguise the fact that a huge centre was planned. The area earmarked for the multi-storey complex was a block bounded by Bachelor's Walk, Liffey Street, Abbey Street and O'Connell Street.

When the scheme was exposed in The Irish Times, the "atmosphere changed", property prices "tripled" and Arlington "was held to ransom".

Mr Lawlor asked who was responsible for the "extortion and blackmail" that Mr Gilmartin had previously claimed resulted in the project being abandoned.

Mr Gilmartin answered that he believed the property owners were influenced and encouraged by "outside sources" and "shadowy figures" and prices subsequently soared. One property went from £275,000 to £1.5 million overnight. "That was extortion," he said.

Arlington had also been in talks with CIÉ for the transport company to use its powers of compulsory purchase order to help them acquire some of the relevant property. In exchange, Arlington would build a bus station within the complex, the tribunal heard.

Mr Gilmartin said Arlington felt the deal would be mutually advantageous, because it would secure the land and CIÉ needed a new bus station, but had no money to build one. But he agreed with Mr Lawlor that the bus station soon came to be seen as a "red herring".

He said it was never viable "if Arlington had to pay for it". The only way it would materialise was if EU structural funds were provided. They considered using Arlington money to build the bus station and lease it back to CIÉ, but that was shelved because CIÉ couldn't afford the rent, the tribunal was told.

Mr Gilmartin said there was a campaign of ridicule against the idea of building a bus station on top of the centre, including an article in the Irish Timescriticising the plan as technically unfeasible. "I agreed," Mr Gilmartin said. "It was pure nonsense."

Mr Gilmartin said he felt the centre would have a greater chance of success if the bus station was abandoned and it was built as two floors with a car park underneath.

Mr Lawlor also tried to prove the project failed because Arlington did not have sufficient finances, despite Mr Gilmartin's claim the company could raise up to £500 million if necessary. Mr Gilmartin refused to accept this version of events.

During angry exchanges, Mr Gilmartin and Mr Lawlor clashed repeatedly. "If you're trying to discredit me, Mr Lawlor, you've a long way to go. Is that the best you can do?" the witness taunted at one stage. "You've done that yourself outside the tribunal," Mr Lawlor retorted.

The tribunal resumes next Tuesday.