THE TÁNAISTE has reacted sharply to a demand by Fine Gael leader Enda Kennythat an Opposition TD chair the Oireachtas committee which will consider the report of the inquiry into the banking crisis.

Mr Kenny said that if the Government was serious about the inquiry, the Tánaiste should be able to inform him what committee would deal with the report.

“Will a special committee be established with a short-term remit and an Opposition member as chairperson ?” he added.

Mary Coughlanclaimed that Mr Kenny had cast a slur on all Fianna Fáil chairs. "Deputy Kenny has made an insinuation claiming they are incapable of doing their job, which is utterly untrue."

Ms Coughlan said no decision had been taken on the committee that would undertake the work.

“The Houses of the Oireachtas will be involved in all of the three stages of this inquiry,” she added.

She said that if there were important issues that needed to be raised about the terms of reference of the inquiry, they would be listened to also.

Mr Kenny said he was sure the Minister for Transport was fully intent on having a Fianna Fáil chair of some committee “beaten around the head in an office upstairs before he goes to the meeting and being told to stand by the party with no embarrassing questions on matters of policy or regulation”.

Noel Dempseyreplied: "I have not heard anything as ridiculous as me beating chairpersons around the head. Did Deputy Kenny get a hit on the head?"