Mr James Stafford made a false statement to the Flood tribunal on Thursday when he said consultants to Century Radio had recommended they propose a figure of £375,000 for transmission charges, counsel for the tribunal, Mr Pat Hanratty SC, said yesterday.
Century Radio was in negotiations with RTE in late 1988 and early 1989 regarding charges for using the national transmission network. While RTE initially suggested a figure of £1.14 million, this was later reduced, in 1988, to £914,000.
Mr Stafford had told the tribunal it was on the recommendation of Century's consultants, the Independent Broadcasting Authority based in the UK, and Mr Ray Hills, that £375,000 should be paid for the transmission network. On Thursday Mr Stafford said the IBA had produced a report and had signed off on the fee of £375,000.
Mr Hanratty yesterday said he wanted to know how the figure of £375,000 for transmission charges was reached. "Your evidence yesterday in relation to the IBA having signed off on this figure in this document was incorrect, and they did not in fact sign off on any figure," he said.
He said a letter dated December 14th, 1988, from the IBA showed they stood over the technical content of the Century submission but did not mention the issue of transmission charges.
"They don't mention a figure of £375,000, they don't address a figure of £375,000, they don't purport to produce a figure of £375,000, they don't even address the question of transmission charges," Mr Hanratty said.
He added: "I suggest that it is disingenuous of you to suggest that that in any way amounts to an endorsement of a figure of £375,000."
Mr Stafford replied: "I believe that quite clearly what you are saying is correct. There is no evidence that this is a specific signing off of £375,000, but the advice we had received in relation to transmission came from the IBA and Ray Hills."
Mr Hanratty said Mr Stafford's contention that RTE's proposed charges were "outrageous" was not backed by their consultant, Mr Ray Hills. He referred to a letter from Mr Hills on September 4th, 1988, in which he made references such as "It looks on the face of it far too favourable to RTE".
"He is not saying RTE's figures are outrageous . . . He is saying there is some padding but that he doesn't have sufficient information," Mr Hanratty said.
Mr Stafford said Mr Hills questioned the cost of the transmitter in his letter and the paying of a 20-year fee in the first five years. "The costs are roughly 60 per cent of what RTE have quoted," he said.
Mr Hanratty asked Mr Stafford if it was possible the figure had come from the Century Radio business plan. A letter from Mr Hills on January 13th, 1989, said: "Ensure the bottom line is of the order of £375,000 which is the figure in the business plan." Mr Stafford said it did not come from a business plan.