The businessman at the centre of the south of France holiday villa controversy involving the Tanaiste and the Minister for Finance told the High Court three weeks ago he had been lobbying politicians to try to block EU rules which, he claimed, would cost his aircraft business more than £26 million if implemented.
Mr Ulick McEvaddy said in an affidavit, which was not reported at the time, that one of his companies faced a £26.8 million loss if a European Union regulation which curtails aircraft engine noise was introduced. He added that his bank had told him it might not fund a further investment programme worth more than £55 million unless the EU directive was annulled or amended.
Ms Harney and Mr McCreevy have denied accusations that they are open to a potential conflict of interest because they had a holiday this month, at Mr McEvaddy's invitation, at a villa owned by him near Nice. Ms Harney said in her first public comment on the controversy that Mr McEvaddy has been a friend for several years and she would deal fully with her obligations under the Ethics in Public Office Act.
Mr McEvaddy told the High Court in the affidavit that the introduction of the regulation would seriously jeopardise the future of his aviation business. He said his bank, Anglo Irish Bank, had threatened to withdraw promised financial support to fund new projects if the noise regulation was enforced.
He said he had written to the Minister for Public Enterprise, Ms O'Rourke, in February seeking a meeting about the Government's attitude to the regulation.
The affidavit details how Fine Gael TD Mr Ivan Yates, who has been among the critics of Ms Harney and Mr McCreevy, has been asking questions of Ms O'Rourke on Mr McEvaddy's behalf.
In it, Mr McEvaddy says that on February 25th last, at his request, Mr Yates asked a number of questions of Ms O'Rourke for written reply regarding the proposed regulations.
He said in March one of his companies, Omega Aviation Services Ltd, had written to the Minister expressing opposition to the proposed regulation. He also told the High Court that as recently as May 19th, Mr Yates had asked questions of Ms O'Rourke in the Dail about the noise regulation and the Government's attitude towards it.
The EU noise directive was due to be implemented last April and was discussed at a meeting of EU ministers that month. It was agreed to defer the implementation of the directive for a year, until April 2000.
A spokeswoman for Ms O'Rourke said last night the Government had neither "championed nor opposed" the directive.
The spokeswoman said the Minister received a letter from Mr McEvaddy in February requesting a meeting on the directive. Ms O'Rourke requested Mr John Lumsden, assistant secretary with responsibility for aviation matters, to meet Mr McEvaddy, which he subsequently did.
Mr Justice Kelly granted Mr McEvaddy a temporary injunction on August 3rd preventing the Irish Aviation Authority from implementing the noise directive and in the meantime he is appealing the directive to the EU Court in Luxembourg.
Last night Mr Yates said his canvassing on behalf of Mr Mc Evaddy was because he genuinely believed the introduction of the regulation would have cost many jobs in the engine reconditioning business. He said he has at no time accepted hospitality from Mr McEvaddy. Yesterday, Irish Times journalist Ms Renagh Holohan said she was the friend to whom the Tanaiste referred on radio, who had organised the stay in the villa.