O'Reilly 'unhappy' with Coalition, tribunal hears

The Moriarty tribunal heard today that Independent Newspapers and Sir Anthony O'Reilly were "unhappy" with the Rainbow Coalition…

The Moriarty tribunal heard today that Independent Newspapers and Sir Anthony O'Reilly were "unhappy" with the Rainbow Coalition over a number of issues.

Mr Sean Donlon, a former senior advisor to the-then taoiseach, Mr Bruton, said he was told at a meeting with executives of Independent newspapers (INP), in 1996 that the Government "would lose INP as friends".

The meeting was largely taken up with the issue of the distribution of television channels using the MMDS system which INP had an exclusive licence to operate. However, unauthorised operators were using TV deflectors to provide the same service, mainly in Co Cork. The matter, which had been ongoing since the coalition had come to power in 1994, became known as the "Carrigaline issue".

The executives expressed their hostility towards the government to Mr Donlon and added "any future administration would have a large bill to pay".

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Mr Donlon told the tribunal that prior to his meeting with INP executives in Hatch Streeet, Dublin, Sir Anthony had met with the taoiseach, Mr Bruton, in July 1996 to voice his concern about the government on a number of matters.

Sir Anthony told Mr Bruton that he was unhappy with not winning the licence to operate the State's second GSM network, the "illegal MMDS operators, road access to a mine in the midlands, and the level of grant aid for a Heinz factory in Co Louth. Sir Anthony is a former chairman and managing director of Heinz.

According to Mr Donlon, INP's particular dissatisfaction with the government, was with Mr Michael Lowry, the-then minister for transport, enterprise and communications, whose remit covered the issues of the MMDS deflectors and the awarding of the mobile phone licence. He said he told Mr Lowry he was "persona non grata" with INP. Mr Lowry replied he was not surprised.

At an America Ireland Fund function in UCD in June 1997, Sir Anthony expressed his unhappiness to Mr Donlon about how the government was treating his interests.

Mr Donlon also recalled two meetings he had with the US ambassador, Ms Jean Kennedy-Smith, who had actively promoted US interests in the run-up to the competition for the GSM licence.

Ms  Kennedy-Smith asked him in 1995 if the awarding of the licence would be a government decision, and after checking he said it would be. She said she expected the consortium involving Sir Anthony and US interests would win the competition. Mr Donlon took this to mean she expected it to win because the consortium was a strong one.

He added that some time after Esat Digifone won the licence, Ms Kennedy-Smith said she was "disappointed there would be no American involvement", in the winning bid.

"She would have been quite aggressive about it. She was forthright and blunt in stating her views," Mr Donlon told the tribunal.