The decision to provide a franchise for a new national radio station came "out of a clear, blue sky", the Flood tribunal heard yesterday.
That franchise was won by Century Radio in 1989 but the station closed 14 months after opening, with losses of £8 million. The Flood tribunal is investigating a payment of £35,000 from Century director Mr Oliver Barry to Mr Ray Burke, former minister for communications, in May 1989.
Mr Michael Grant, assistant secretary at the Department of Arts, Heritage, Gaeltacht and the Islands, said that since the early 1980s, his Department's emphasis had been on replacing pirate stations with legal local stations. On October 6th, 1987, the Government agreed to provide licences for these new local and community radio stations.
However, just 22 days later, Mr Burke said it was the Government's intention to have an independent national radio service established as well.
Ms Patricia Dillon SC, for the tribunal, asked if this news had come "out of a clear, blue sky". "Yes," Mr Grant replied. Ms Dillon then asked if there was any indication between October 6th and 28th that the Government or the Minister was thinking of including national radio in the new Broadcasting Bill. "Not to my knowledge," Mr Grant said.
Asked if his Department had been asked to carry out research on independent broadcasting before Mr Burke made his decision, Mr Grant answered, "Not that I'm aware of." Mr Grant said his Department did not have a policy on national independent radio at that time and its officials had not been asked for advice.
Mr Burke also told civil servants that the new Bill should contain a stipulation for a minimum of 20 per cent news and current affairs output for new stations. Ms Dillon asked where this policy came from. "I can only presume it came from the Minister," Mr Grant replied. Asked if his Department had been asked to research this, he replied, "Not that I'm aware of."
