The Flood tribunal today heard of proposals considered by the board of Century Radio to purchase its competitor 2FM.
Former Century Radio director Mr Oliver Barry told the tribunal it was one of many ideas being considered in a bid to rescue the company which was in dire circumstances prior to its subsequent sale to Capitol Radio.
But Mr Barry denied the then Minister for Communications, Mr Ray Burke was in favour of the idea or had "floated it in the Dáil".
He said the Minister was in favour of turning 2FM into a talk-orientated station with less music.
Mr Pat Hanratty SC, for the tribunal, later read out comments in the Dail on May 29th 1990 in which Mr Burke said 2FM was launched in response to a demand (for pirate radio) although the continuing of pirate radio indicated that RTÉ had failed to meet demand for an independent broadcasting station.
Earlier Mr Justice Flood suggested the problems confronting Century Radio may not all have led back to RTÉ. He said the audience comes from the quality of programmes. He asked whether the Century Board ever considered whether the real problem was an incompetent board incapable of broadcasting attractive programmes.
The tribunal also heard how one of the three principle investors in Century Radio, Mr Charles Haughey's son-in-law, Mr John Mulhern, invested £25,000 more than the £275,000 capital investment required.
Asked by Mr Hanratty why this had happened, Mr Barry suggested maybe this sum was to reimburse Mr Stafford and himself for the day-to-day running of Century Radio.
Mr Barry said he deducted the donation of £35,000 to Mr Ray Burke, £5,000 given to RTÉ and a sum of £283 from his own capital investment of £275,000.
Mr Hanratty asked why a separate donation of £5,000 to Fianna Fáil and other expenses incurred were not also deducted. Mr Barry replied he did not know.
The tribunal continues this afternoon.
