Tánaiste Joan Burton has today been forced to express confidence in the Attorney General after it emerged that a legal obstacle has halted the work of the Commission of Investigation into Irish Banking Resolution Corporation.

Ms Burton said she had no reason not to give Marie Whelan her full backing despite issues emerging with the commission which is inquiring into write-downs of more than €10 million in transactions conducted by the IBRC.

Judge Brian Cregan has written to Taoiseach Enda Kenny stating he was not in a position to proceed" with his investigation because he believes he has insufficient powers to determine how the commission can deal with sensitive financial documents.

The Tánaiste said 14 other inquiries had been established under the 2004 legislation.

Asked if she still had confidence in the Attorney General, she replied: “Yes. Why wouldn’t I?

“She is someone who has done amazing legal work for this Government on a range of issues. As I said this Bill was constructed in 2004. It has been used in a significant number of investigations and inquiries.”

Ms Burton said the first she heard that there were issues with the commission when she was advised of a letter received by the Taoiseach on Friday.

The Tánaiste said the Government was determined to resolve the issues as soon as possible.

The Attorney General is to brief the Cabinet on the possibility of emergency legislation tomorrow morning.

Mr Cregan has advised the Taoiseach he had insufficient powers to complete the work assigned to him.

The commission is investigating disposals by IBRC involving writedowns of €10 million or more.

They include the sale of Siteserv to a company controlled by businessman Denis O'Brien, a disposal which involved a writedown of €119 million.