Taoiseach Enda Kenny has confirmed the Government has approved the urgent drafting of legislation to enhance the powers of the IBRC Cregan inquiry.

He told Social Democrats TD Catherine Murphy the Government approved a specific investigation module on the controversial sale of Siteserv to a company controlled by businessman Denis O'Brien.

Mr Kenny said the Cabinet approved “the urgent drafting of legislation to enhance the powers of the commission of investigation into IBRC along the lines of a general scheme that we discussed, together with all the consequent challenges that lie therein”.

Mr Kenny met Ms Murphy and other party leaders last week and the Government discussed the issue at its meeting on Wednesday.

The legislation is linked to issues of privacy and disclosure.

The Taoiseach said "the Government noted the approach proposed regarding the revision of the terms of reference for the commission of investigation into the Irish Bank Resolution Corporation following consultations by me and Ministers with members of the Opposition parties".

The Government discussed the challenges involved from the drafting of legislation to give greater powers to the commission of inquiry into transactions by the IBRC, where the sale of assets resulted in losses to the taxpayer of a minimum of €10 million.

He said the legislation would allow for the investigation of the Siteserv sale, would be provided for in a modular format because it was a matter of public concern and also provided for “future modules to be inserted into that, if necessary”, on other sales.

More than 30 sales resulted in losses of over €10 million. The Siteserv sale resulted in a book value loss of more than €100 million.

Ms Murphy, who has repeatedly raised the issue of the Siteserv sale, had also asked whether there was a timeline for the inquiry and for the changing of its terms of reference.