Report reflects culture of fanatical greed, says Kenny

Taoiseach Enda Kenny has pledged to sever the links between politics and business “once and for all” following the damning findings…

Taoiseach Enda Kenny has pledged to sever the links between politics and business “once and for all” following the damning findings of the Moriarty tribunal.

At the start of a two-day Dáil debate on the inquiry's report, Mr Kenny said the report reflected a culture of fanatical greed in Irish public life which involved “breathtaking attempts to acquire, use and access privilege”.

In its final report, published last week, the Moriarty tribunal found that then Fine Gael minister for communications Michael Lowry “secured the winning” of the 1995 mobile phone licence competition for Denis O’Brien’s Esat Digifone.

The Taoiseach told the House that “incalculable damage” had been done to Ireland’s reputation by a culture of: “thanks very much big fella, walking-around money, whip-arounds, luck on the horses and because of a taoiseach degrading our nation and this office by trousering after-dinner tips”.

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Mr Kenny said the fact that a modern democracy would require tribunals into payments to politicians was “proof of the degradation of politics, the decline of civic virtue”. Unfortunately, he said, this has coincided with an “inevitable rise of public cynicism and disengagement”.

The Fine Gael leader said the tribunal had found “seriously and serially” against Mr Lowry and others who he described as major players in Irish business and public life.

The Minister for Justice had already addressed what he said was “the arrogance, unseemliness and danger of their public reaction” to the judge's findings.

On the inquiry’s recommendations, the Taoiseach said the Cabinet had directed all relevant government departments to formulate a response to the report’s findings within four weeks.

Fianna Fáil leader Micheál Martin said the report exposed “serious malpractice and corruption”. He said tribunal’s findings were based not on the unfounded opinions of one judge but on the evidence.

Mr Martin said the report made it abundantly clear that “the integrity” of the licence competition was “disgracefully compromised”, warning the State may yet be exposed to punitive compensation claims from losing consortiums.

He said the report was a deep indictment of the conduct of Mr Lowry both as a minister and in the years following his “reluctant resignation”.

“Deputy Lowry wants us to put aside the report and believe instead a series of explanations that, in fact, explain nothing,” Mr Martin said.

However, he was also deeply critical of Fine Gael’s role in the granting of the licence, accusing Mr Kenny of refusing to acknowledge what the report said about the fundraising activities which the party and its ministers participated in.

Mr Martin said the tribunal’s uncontested facts show there was a “targeted programme of financial donations to Fine Gael and engagement with Fine Gael politicians were a core part of the strategy of the same bidder”.

He pointed to the fact that a total of IR£22,140 was paid by Mr O’Brien or Esat companies to Fine Gael between January 1995 and June 1996. These monies were separate from the 1996 donation of $50,000 to the party from Telenor, part of the winning consortium for the licence competition.

The format for this evening’s segment of the debate allowed for 30-minute statements from Mr Kenny and the leaders of the two main opposition parties and the technical group. These statements were followed by an hour-long statement from Mr Lowry.

The Tipperary TD launched a scathing attack on the tribunal, claiming it had made "grievously" wrong findings against him and that he had been the subject of a witch-hunt by the inquiry for nearly 14 years .

"It was not about evidence but assumptions; not about truth but about self justification and media sound bites; not about legal jurisprudence but about witch-hunting and scapegoating," Mr Lowry said of the tribunal.

"Not a single person came into Dublin Castle and gave sworn evidence that I interfered in any way in the second mobile phone licence process. Not one," he said.

"Furthermore, not a single person came before this Tribunal since day one to say that I received any money from Denis O’Brien."

Sinn Féin's Martin Ferris called on Fine Gael to publish a full list of their corporate donations over the past number of years.

"If Fine Gael is serious about political reform and if they are serious about putting their Michael Lowry days behind them and ending cronyism the first thing they ought to do is publish a full list of their corporate donations over the past number of years," Mr Ferris said.

Earlier, it was confirmed Mr Kenny would field questions on issues relating to his party in the report at the end of the debate.

Opposition parties yesterday complained the Government was trying to thwart a meaningful debate on the findings after it emerged that Minister for Communications Pat Rabbitte had been nominated to answer questions on behalf of the Government.

However, a Government spokesman confirmed earlier today that Mr Kenny would be available for questions on specific criticisms made by the tribunal about his party’s fundraising activities in the 1990s.

Sinn Féin is expected to call on the Government to lay down a motion of censure against Mr Lowry. “In my own view whatever Michael Lowry is guilty or not guilty of, what we are dealing with is a culture of corruption,” party leader Gerry Adams said today. “It is an insight into how the golden circles function. The Government are preventing, totally contrary to their stated views, any serious debate or discussion on these issues.”

Earlier, Mr Kenny told the Dáil the tribunal had cost the State nearly €42 million so far. He said the running costs of the inquiry, excluding third-party legal costs, now stood at €41.96 million.

The format for tomorrow’s debate will see nominated speakers given 30-minute slots, commencing with an address by Mr Rabbitte following the Dáil’s order of business.

Mr Lowry will again be called on to make a further 20-minute statement at 5.20pm. This will be followed by an hour question and answer session in which Mr Rabbitte and Mr Kenny will field questions on behalf of the Government.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times