The Dáil has heard more allegations that the sale of SiteServ to a firm owned by Denis O'Brien was handled inappropriately.

Independent TD Catherine Murphy says Denis O'Brien was approached by personnel in IBRC telling him to increase his bid, in order to secure the sale.

The Dáil sat until midnight debating the terms of reference for the inquiry to IBRC and despite their early optimism, opposition TDs were soon picking holes in the plans.

Catherine Murphy brought yet more new claims, saying Denis O’Brien’s firm Island was not the highest bidder for SiteServ.

Meanwhile the Minister for Finance, Michael Noonan, has said concerns raised by Sinn Féín's Pearse Doherty last night will be covered by the inquiry.

Deputy Doherty says IBRC's liquidators rejected three bids by Denis O'Brien to renegotiate loans worth €315 million but then agreed to a fourth proposal after Mr O'Brien threatened legal action.

Deputy Doherty says the terms of reference won't allow the claims to be investigated, but Minister Noonan last night said they would be.

For their part, the special liquidators for IBRC have disputed Pearse Doherty's claims.

They say the information put on the Dail record about the alleged extension of credit facilities was inaccurate and misleading.