THE former transport, energy and communications minister, Mr Michael Lowry, will dispute claims that he intervened with a Fine Gael councillor and TD in Westmeath over tax designation status for a development site involving Dunnes Stores.
It is understood that Mr Lowry will sharply disagree with a statement given to the Dunnes tribunal by the Fine Gael TD, Mr Paul McGrath. In that statement, Mr McGrath is believed to say that Mr Lowry approached him over the development site which, if recommended for designation status under the urban renewal scheme by Westmeath council, would have given investors and tenants generous tax allowances.
According to Mr McGrath's version, Mr Lowry expressed concern at Mr McGrath's opposition to granting the site designation status and pointed out that Dunnes Stores was a major financial contributor to Fine Gael.
The tribunal resumes hearings this morning in Dublin Castle and is likely to hear evidence concerning Mr Lowry later in the week. When it, comes to deal with Mr McGrath's statement, it is understood Mr Lowry will admit he had a conversation with Mrs McGrath which, The Irish Times has learnt, happened in Leinster House in the spring of 1994.
However, Mr Lowry, who at the time of the conversation was chairman of Fine Gael and a trustee of the party, is expected to give a different version of the conversation. Mr McGrath's statement to the tribunal was prompted by what he read of its proceedings during April and was made before the general election.
When asked to comment yesterday, a Fine Gael spokesman said Mr McGrath's statement would be the subject of formal inquiry by the tribunal later this week and "it would be inappropriate to make comment in advance of this inquiry".
Mr McGrath would not elaborate last night and Mr Lowry, through a spokesman, said he would not comment.
The possibility of special tax status being granted to the Mullingar development was opposed by Fine Gael councillors in Westmeath, led by Mr McGrath, but they were in a minority.
It is unclear Whether the council's decision was made at the time of the conversation between Mr Lowry and Mr McGrath. The conversation and the decision by the council both took place in the spring of 1994. The government acted on the council's recommendation in the autumn of that year.
The shopping centre, at Harbour Place, opened two weeks ago.
Meanwhile, the tribunal is understood to have made progress in following the trail left, by the £1.3 million Mr Ben Dunne said he paid to Mr Charles Haughey but which Mr Haughey has indicated he never received.
The tribunal team working on evidence collected in Ireland and Britain has been able to follow the money from the two accounts controlled by a Cayman Islands bank into which it was known the money had been lodged.
