New legislation required for costs, says Ahern

New legislation will be passed in October to allow the new chairperson of the Flood tribunal adjudicate on the issue of costs, the Taoiseach said this afternoon.

Speaking following the resignation of the existing chairman Mr Justice Flood from the tribunal, Mr Ahern said: "In relation to the issue of costs I have been advised by the Attorney General that new legislation will be required."

Mr Ahern said Mr Justice Flood's resignation "will thus not prevent the costs issue being decided upon. The tribunal agrees that that the costs issue will be dealt with after the enactment of the new legislation in October".

He said the Government "would have preferred and indeed had requested that he decide the costs issue, I understand and appreciate why it is that Mr Justice Flood is now resigning."

The Government's preference for Mr Justice Flood to deal with the costs issue stemmed from concerns over future challenges to the tribunal arising from this issue.

Mr Ahern also commended Mr Justice Flood on his work with the tribunal. "We are indebted to Mr Justice Flood for his sterling work in the tribunal. It [the tribunal] has exposed serious wrongdoing in the planning field through the diligence and hard work of Mr Justice Flood and his legal team."

"His name will be synonymous with the will and the determination and of the Dail, the Seanad and the Irish people to expose and root out malpractice and corruption," he said.

The Taoiseach said methods for dealing with future modules would be discussed by the Oireachtas. "It is only the Houses of the Oireachtas that can change the Terms of Reference of the Tribunal. The Houses can consider whether this is prudent or desirable, in the light of a letter from the tribunal of June 25th, [2003], relating to duration and costs."

Mr Ahern has told the Dáil that the legal costs for the Flood hearings to date were €26 million and that the tribunal could run for over another 15 years. This could bring costs for the tribunal up to €60 million.

The Tánaiste Ms Harney said: "The Flood tribunal has played a key role in consigning the era of the golden circle, the cosy cartel and the notorious brown envelope to history".