Cowen defends backing of FF-linked firm

FINANCE Minister Brian Cowen yesterday defended his backing for a commercial enterprise near Dublin Airport headed by a businessman from a Fianna Fáil family.

His decision — taken when he was Minister for Transport in the early 1990s — was based on an objective assessment, he told the Mahon Planning Tribunal.

Mr Cowen agreed in principle to grant commercial road access through State lands to an airfreight warehousing consortium at Cloghran.

Aer Rianta was implacably opposed, maintaining it needed these and other lands for its own expansion.

The minister’s support paved the way for the business venture being promoted by Michael McGuinness, a brother of FF deputy John McGuinness of Kilkenny.

The Cargobridge project had the support of councillors from all political parties in Dublin County Council who voted to rezone the consortium’s 24-acre landlocked site for industrial use.

Ciaran Haughey, son of former Taoiseach Charles Haughey, and his Celtic Helicopters’ business partner John Barnicle held a 15% stake in Cargobridge through shelf company Abervanta Ltd.

Businessman Ben Dunne was guarantor for a £185,000 bank loan to fund the purchase on their behalf.

Solicitor Noel Smyth — who arranged the loan with Bank of Ireland Private — told the tribunal yesterday he was “flabbergasted” at suggestions as to where nearly £200,000 went after the bank was paid off. Messrs Haughey and Barnicle sold their 15% stake for £415,000 in 1994.

Tribunal lawyer Pat Quinn SC said Messrs Haughey and Barnicle had sent a statement saying Ben Dunne had not profited when the Abervanta stake was sold.

In his evidence, Mr Cowen offered the tribunal two possible “stories” for his 1993 decision.

One story was he had made an arbitrary, untoward, decision — and had an improper motive to benefit a particular individual, whose family had a history of involvement with his own party.

Advancing the second scenario as the correct version, Mr Cowen pointed to the evidence of senior department witnesses and his own testimony as well as the cross-party council support given to the Cargobridge venture. The facts suggested he had taken the proper decision.

Mr Cowen agreed he had met lobbyist Frank Dunlop and showed him copies of letters he was sending to Michael McGuinness and former Aer Rianta chairman Noel Hanlon. This was not unique as he knew Mr Dunlop was acting with Mr McGuinness’s full authority.

Tribunal lawyer Patricia Dillon SC noted Mr Cowen’s statement had made no reference to Mr Dunlop, but Mr Cowen replied there were no documents relating to Mr Dunlop on the department’s file. He said he had forgotten to check the tribunal’s questions mentioning his contacts with Mr Dunlop.

Mr Cowen later told journalists he was glad to get the opportunity to deal with all the matters and said he had stated the position as factually as he could.

He recalled the context of his decision. At this time competition was opening up in the Irish economy, with the need for private and public investment to maximise jobs.

Any proposals coming forward that would increase economic activity required full consideration. “I made my decisions on the basis of the objective needs of the situation, on the merit of the proposal,” Mr Cowen insisted.

* The tribunal will issue its decision this afternoon regarding publication, by The Irish Times, of information relating to payments to Taoiseach Bertie Ahern.