A CLAIM by former minister, Ray Burke, that he had a deal with the Flood tribunal protecting him from liability for his massive legal bills of £10.5m is one of the factors surrounding the crisis in the tribunal which led to the resignation of Mr Justice Feargus Flood. The tribunal has strongly denied that there was any deal with Burke.

This weekend Flood is reported to be angry at the way he was pressurised by the government in recent days to preside over a hearing into who should bear the cost of the inquiries that led to his dramatic report last September. The judge resigned because he felt his arm was being twisted to take the hearing against his will.

It will not become clear until the much-deferred cost hearings take place in the autumn what the basis for Burke's claims are.

Legislation will have to be passed by the Dáil in October to enable Flood's successor as chairman, Judge Alan Mahon, to preside over the cost hearing.

The government initially declined a request by Flood to pass the issue over to Mahon, referring to concerns that this might open up the issue to legal challenge. However, once Flood resigned, the Taoiseach announced that new legislation "will provide a legal basis for a new chairperson of the tribunal to adjudicate on the issue of costs." The future of the tribunal now hinges on how the costs issue is sorted out.

The first indication that all was not well at the tribunal came on 13 May when the scheduled hearing on costs was adjourned without explanation.

A massive amount of paperwork had been completed by Attorney General's office and the Department of Finance, as well as by the tribunal itself, in the two months leading up to the date of the planned hearing.

On the weekend after the postponement of the hearing, The Sunday Tribune revealed that Burke was claiming he had a deal which protected him from liability for costs. That claim was denied by the tribunal in the strongest terms nearly three weeks later in a statement issued by its registrar, Peter Kavanagh, BL.

"The chairperson of the tribunal, Mr Justice Feargus M Flood, emphatically rejects any suggestion that any representations or assurances were given or any agreement or deal made with Mr Burke's legal representatives in relation to costs, " said a statement.

Despite this emphatic denial, the tribunal still made no move to hold the hearing into costs.

Flood was taken ill for a period but returned to work over two weeks ago. On his return he wrote to the Attorney General proposing that he should step down from the cost hearing, as it would impose an undue strain on him, but that he should continue on as an ordinary member ofthe tribunal.

This suggestion provoked a hostile response from the government. The Taoiseach told the Dáil he would like to see Flood preside over the costs hearing.

In a formal letter the message was even more blunt. Flood was told the government would like him to hear the issue of costs but that he should not remain on the tribunal after that in the light of his statement that the cost hearings "would impose an undue strain on me".

The tribunal responded to the government's letter on Wednesday outlining its work programme for the next three years and providing a list of witnesses who were seeking to have their costs paid by the state. The biggest bill on that list was 10.5m from Ray Burke.

After the exchange of letters, Flood had two meetings with the Attorney General, Rory Brady, one on Thursday night and the other on Friday morning before deciding to go through with his resignation.