State may face €100m legal bill for planning tribunal

A decision by the planning tribunal to award legal costs to most witnesses has left the State with a bill running into ten of millions of euro.

The chairman of the tribunal, Judge Alan Mahon, said yesterday he would award costs "save in exceptional circumstances" to witnesses who had co-operated with the inquiry and against whom no adverse finding had been made.

His decision paves the way for most of the 170-plus witnesses who appeared before the tribunal between 1998 and 2002 to have their costs paid by the State.

Informed estimates say the bill for their legal costs could approach €100 million, on top of the running costs of over €30 million for the tribunal itself. This amount far exceeds the €34.5 million paid to the Revenue Commissioners in connection with tribunal-related inquiries up to 2002.

Only a small number of witnesses who failed to co-operate with the tribunal, including former minister Ray Burke, builder Tom Brennan and developer Michael Bailey, have thus far been refused costs.

Judge Mahon's decision is likely to have implications for other tribunals that will shortly have to adjudicate on the issue of costs. In particular, the Moriarty tribunal, which has been running since 1997, has made no order on costs so far.

Among the first to be awarded his costs yesterday was James Gogarty, the retired building company executive whose revelations about payments to Mr Burke led to the setting up of the tribunal.

Mr Gogarty is seeking €3.5 million in costs but this, like the other awards, is subject to final adjudication by the Taxing Master of the High Court.

Frank Connolly, the journalist who first wrote about Mr Gogarty's allegations, and Post Publications were also awarded costs, estimated at €170,000. No one knows exactly how much the tribunals will end up costing but the Dáil Committee of Public Accounts heard earlier this year that the final bill could be up to €1 billion, of which witness costs would account for €800 million.

Judge Mahon yesterday ruled on the first 10 applications for costs at the planning tribunal, and tomorrow he will hear submissions on a further four. Further costs hearings are likely in the coming weeks; the tribunal, which has sat for 31 days so far this year, is currently unable to hold substantive hearings because of High Court proceedings.

In all 10 cases the chairman awarded costs on the basis that the witness had co-operated and was not the subject of adverse findings.

Minister for Foreign Affairs Dermot Ahern was awarded legal costs of almost €270,000 arising from his involvement with the tribunal. In 1989 Taoiseach Bertie Ahern asked Dermot Ahern to investigate allegations of payments to Mr Burke. The financier Dermot Desmond was also granted costs, estimated at €71,000.