Former minister for transport Mr Michael Lowry has told the rail signalling inquiry he had no contact with former Esat chairman Mr Denis O’Brien over a project to lay telecommunications cable on the national rail network.
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Former Minister Mr Michael Lowry
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Mr Lowry, who resigned as minister in November 1996, said he was unaware of CIÉ’s planned venture with Esat to lay the cable with its signalling programme.
The inquiry is investigating why the cost of the 1997 programme for lesser-used lines spiralled to more than £50 million despite a £14 million projection. It is also investigating what link the network built for Esat had to the overrun in costs.
Mr Lowry said he was not personal friend of Mr O’Brien at that time nor was he now. He said during that his time as minister he only dealt with Mr O’Brien in a professional sense.
Asked if the Department of Transport at the time conferred favourable status on Mr O’Brien or Esat, which was awarded the State’s second mobile phone licence, Mr Lowry said: "It was quite the contrary".
He said Mr O’Brien made "a pest of himself" with the Department by phoning nearly every day. Mr O’Brien was said to be concerned that the Department’s narrow focus in relation to the liberalisation of the telecomunications market.
Mr Lowry said Mr O’Brien was in fact considered "a nuisance" by the Department.
In his evidence to the inquiry, Mr Lowry denied any knowledge that a director of Esat, Mr Leslie Buckley, was simultaneously employed as a consultant to CIÉ.
Mr Buckley is estimated to have been paid over £380,000 in fees.
