The Independent Radio and Television Commission knew when it granted the national radio licence to Century Radio that Century was not prepared to pay the amount decided by the former minister for communications, Mr Ray Burke, to set up the radio station, Mr James Stafford told the Flood tribunal.
The minister wrote to the IRTC on February 16th, 1989, saying a figure of over £600,000 had been agreed with RTE.
However, when Century Radio made its submission to the IRTC on January 12th to apply for the national licence, it said a charge above £375,000 would make the project unviable. Despite this discrepancy, Century Radio was awarded the radio licence formally on January 18th, 1989.
Later that year, in June, Century Radio held a meeting with the minister to outline problems it was having with the IRTC and RTE before going on air. In one complaint against the IRTC, Century Radio said it had refused to give an assurance that the radio licence would be renewed in seven years.
Century Radio also told the minister RTE would not sign the transmission contract to set up the radio station until it had signed the broadcast contract with the IRTC. Mr Pat Hanratty SC, for the tribunal, said it would not be unreasonable for the IRTC and RTE to refuse these requests. "What Century were doing in effect was trying to impose their own will on the IRTC and RTE," he said.
Mr Stafford denied this, saying it had brought the problems to the minister's attention but had not asked him to interfere. "In my view the minister had no role to play in the matter."