The Taoiseach has announced that Mr Justice Feargus Flood, the chairman of the Flood Tribunal, has resigned as a member of the Tribunal and as its Chairman.
Judge Alan Mahon, who joined the Tribunal last year, is to be appointed as the new Chairman.
Mr Justice Flood, who has held the position for the last 75 months, wrote to the Government with his request to step down 11 days ago.
Bertie Ahern said he believed there is no legal impediment to another chairman dealing with the issue of costs at the Tribunal and that he would introduce legislation in the Autumn.
The legal costs to date for the Flood hearings run to €26 million.
Leaving Dublin Castle this evening, Mr Justice Flood said the future of the Tribunal depended on people realising that those who do not conform will be ostracised by society.
If that happens, the tribunal will be successful, he said. He added that it had been an 'absolute success' to date.
On the controversial costs module, Mr Justice Flood said it would be something the Tribunal would just have to get on with.
He said that while it might be a little more contentious than other modules, it would be dealt with.
He declined to comment on the legal implications of his retirement as he said from today he 'ceased to be a lawyer'.
The Fine Gael leader Enda Kenny said the resignation of Mr Justice Flood has come as a bombshell and leads us into legal difficulty and uncharted waters.
Speaking in Sligo, Mr Kenny said that under current legislation the only person who can decide costs is the sitting chairman.
He said this may now leave the situation open to legal challenge with every application for costs.
