Tribunal hears of radio licence auction plan

The Flood Tribunal has been told that former finance minister Ray McSharry wanted local radio licences to be given out to the highest cash bidders.

The tribunal was read correspondence from Mr McSharry to then Justice Minister Ray Burke suggesting the auction in late 1997 and early 1998.

However, Mr Burke was against the idea, saying that a situation could arise where licences would be awarded to well-off groups, regardless of the quality of their programming.

Civil servants agreed with Mr Burke because it could have led to "constitutional imponderables" under the Freedom of Expression Act.

The tribunal also heard that after fears expressed by opposition parties that licences could go to Fianna Fail's political allies, a decision was taken to establish the Independent Radio and Television Commission.