Plans revealed hours after Flynn donation refused

DETAILS of confidential plans by a British development firm to acquire several properties in Dublin city centre appeared in a front page article of the Irish Times in 1989 within 48 hours of the company turning down a request for a political donation to Fianna Fáil from Padraig Flynn.

The Mahon Tribunal heard yesterday that this publicity surrounding plans by Arlington to buy several properties on Bachelor’s Walk in the late 1980s was a significant factor in the company’s subsequent withdrawal from the project, at a major financial loss.

In a statement to the inquiry, a former Arlington director, Ted Dadley, outlines how he and another company executive, Raymond Mould, were asked by the then Environment Minister Padraig Flynn to make a donation to “the boys” at the end of a party fundraiser at a London hotel in November 1989. Mr Dadley, who is due to appear as a witness at Dublin Castle this morning, claims current Taoiseach Bertie Ahern was also present at the Fianna Fáil function.

He recalls that when asked for a donation by Mr Flynn, he said he would first have to discuss the matter with Mr Mould. Mr Dadley subsequently contacted the former Mayo TD and informed him a donation “would not be possible”.

“Ironically, within 48 hours of that statement, the article appeared on the front page of the Irish Times that it was Arlington behind the acquisition of various properties along Bachelor’s Walk for the purpose of creating a shopping mall. The inevitable happened,” reads Mr Dadley’s statement.

The English businessman is expected to claim the Irish Times story about Arlington was one of three main reasons why the company did not proceed with the development of the Bachelor’s Walk site. Mr Dadley believes the exposure through the media coverage of the fact that Arlington were looking to acquire properties in the area caused the price sought by land-owners to soar.

He also blamed Arlington’s inability to complete the project on a general collapse in the property market in the late 1980s, as well as the company’s failure to reach an agreement with CIÉ on the location of a new bus terminus.

In his 11th day of evidence at the tribunal, retired developer Tom Gilmartin refuted Mr Dadley’s recollection that he had recommended Arlington to hire Liam Lawlor as a consultant because the company would need “some political PR prowess” and the former TD “would be useful for keeping the Government on side”.

“It did not come from me. In fact, the reverse was the case,” remarked Mr Gilmartin. He also disagreed with Mr Dadley’s claims that Mr Lawlor had asked for a retainer, which ultimately was agreed as a monthly fee of £3,500 and was paid for 10 months. Mr Gilmartin said the then TD had initially sought £100,000 plus half of his 20% stake in the Bachelor’s Walk development.

Earlier, Mr Gilmartin agreed with Mr Flynn’s barrister, Bernard Madden, that there was no impropriety on his client’s behalf in giving Arlington prior, private notice that he was going to designate part of the Liffey quays for urban renewal tax incentives.

Mr Gilmartin complained that some recent media reports had carefully edited the details about this letter so that “the full picture was not shown”.

“Quite frankly, we have been libelled,” he said.

Meanwhile, the content of a separate statement from Mr Mould appears to contradict Mr Gilmartin’s evidence that Mr Lawlor had once arrived unannounced into an Arlington board meeting in London. Mr Mould claims the former TD had only once ever appeared at Arlington’s office but never at a board meeting. He recalls that Mr Lawlor’s role was “to help us through the corridors of power”.