Flynn gave written tax pledge to developer

THE drip feed of leaks from the Planning Tribunal took another twist yesterday as it was revealed that Padraig Flynn gave a guarantee about a tax designation to a property company represented by Tom Gilmartin.

The former Minister for the Environment provided a written guarantee to the British company about the tax designation months before it became law.

The change in the law gave Arlington the chance to buy sites in Dublin at low prices, the Sunday Business Post reported yesterday.

According to the newspaper, tribunal documents it obtained cast further light on Government plans to grant tax designation to sites in Dublin in the late 1980s.

The documents also show the tribunal is probing meetings between the Taoiseach Bertie Ahern and some of his close associates.

These revelations all relate to the tribunal's investigations into the development of Quarryvale in west Dublin due to start next month.

The Taoiseach and six former Fianna Fáil Cabinet colleagues have been called to give evidence in the first phase of long-awaited investigations into the rezoning.

The first witness will be Mr Gilmartin, who will repeat his allegations that he was asked by an unidentified man to deposit £5 million into an Isle of Man bank account, following an alleged meeting with FF ministers in Leinster House.

The primary focus though will be on the £50,000 paid by Mr Gilmartin to Mr Flynn. According to Mr Gilmartin, the money was meant to go to Fianna Fáil as a political donation, but it didn't. It was alleged recently that part of the sum wound up in bogus non-resident accounts operated by Mr Flynn and his wife.

Now it has emerged that this payment was made by Mr Gilmartin 16 months after Mr Flynn guaranteed the tax designation.

After sending the letter guaranteeing the tax designation in February 1988, Mr Flynn signed the measure into law in May 1988. At the time, Arlington was planning a massive development along Bachelor's Walk.

The anticipated washing of the Fianna Fáil dirty linen in public comes at an extremely awkward time for Mr Ahern and his party.

Aside from the embarrassment for the Taoiseach of being called before a tribunal, centring on sleaze allegations against his own party, during Ireland's EU presidency, the evidence will be heard just months before the crucial local and European elections.

The tribunal will hear conflicting accounts of the alleged meeting between Mr Gilmartin and Cabinet ministers in February 1989.

While Mr Gilmartin insists Mr Ahern was present, the Taoiseach says he has no recollection of the meeting.