The Taoiseach has provided opposition leaders with legislation aimed at resolving the legal difficulties identified by the Commission of Investigation investigating transactions by IBRC.

A Government spokesman confirmed Enda Kenny had corresponded with Fianna Fáil leader Micheál Martin, Sinn Féin leader Gerry Adams and Social Democrats leader Catherine Murphy.

The spokesman said the draft heads of a Bill were provided.

It is understood the proposed legislation examines whether the issues of confidentiality and privacy identified by Judge Brian Cregan can be overcome.

The investigation was established last year to examine up to 40 IBRC transactions that resulted in a loss of €10 million or more to taxpayers.

There have been calls for the Taoiseach to limit the scope of the inquiry.

A spokesman declined to comment on this.

It is believed Mr Kenny is willing to change the terms of reference of the commission to allow it have a more targeted focus.

The letter outlines the various options available to the Government and Mr Kenny asks the party leaders to consider the options and come back.

Mr Kenny insists the judge is continuing his work and confirms the terms of reference for the Commission will be changed.

A spokesman for Fianna Fáil said: “We have received correspondence from the Taoiseach this evening which we will study carefully and respond appropriately. However, we maintain our criticism at the government on this issue - the government has completely mishandled this inquiry from the outset.”