Taoiseach Enda Kenny has defended Michael Noonan's handling of the inquiry into the controversial 2012 sale of Siteserv.

Mr Kenny told the Dail that Mr Noonan, “among his peers at European level, was deemed to be the outstanding Minister for Finance and I have absolute confidence in him’’.

He was replying to Socialist Party TD Paul Murphy, who said the facts surround IBRC's handling of the matter had to be "dragged out of the Minister'', adding it was a cover-up.

"Do you have confidence in him," Mr Murphy asked? "Would you agree that he should now resign?''

Mr Kenny said Mr Murphy’s last retort was hardly worthy of an answer.

The Taoiseach rejected Opposition criticism by Fianna Fáil leader Micháel Martin and Sinn Féin leader Gerry Adams of the decision to have officials from KPMG examine all IBRC transactions which resulted in a loss of more than €10 million euro to the taxpayer.

Mr Martin claimed there was a fundamental conflict of interest involved, given that the firm had advised on the sale of Siteserv and was now investigating it.

“Belatedly, the Minister acknowledges the conflict of interest and then appoints a retired judge to monitor potential conflicts of interest,’’ Mr Martin added.

He called on the Government to establish a full commission of investigation into the sale.

Mr Kenny said the Government wanted the facts of the sale to be made available as quickly as possible.

A commission of investigation would require a lead-in of a couple of months and it would be a long time before the report was published.

He said Mr Martin would be “the first out of the traps’’ to say the Government was involved in a cover-up and did not want the information to be made available.