The Government was defeated in the Dáil by 81 votes to 58 in a motion on the controversy surrounding the National Asset Management Agency sale of its Northern Ireland loan book portfolio, Project Eagle.

A Fianna Fáil amendment to allow for the establishment of a commission of investigation if necessary once the outstanding criminal investigations have been concluded, was accepted by 105 votes to 38.

The Government voted with Fianna Fáil once its own amendment was lost.

The Government amendment, proposed by Minister for Finance Michael Noonan, did not allow for a commission of investigation but instead resolved to "respect the integrity of the ongoing UK National Crime Agency criminal investigation" and to allow the Committee of Public Accounts to exercise its oversight.

Independents 4 Change sought the immediate establishment of a commission of investigation into the sale by the State agency of the 850 properties for €1.6 billion to US investment firm Cerberus. Its proposal included a deadline for the commission to report.

The UK’s National Crime Agency had arrested Ronnie Hanna, Nama’s asset recovery manager at the time of the controversial sale, and Frank Cushnahan a former member of Nama’s Northern Ireland advisory board, during the investigation of an alleged fixer’s fee of €15 million in the sale.

Independents 4 Change TDs Mick Wallace and Clare Daly raised the issue a number of times in the Dáil. They claimed during the two-hour debate in the Dáil on Wednesday that the commission of investigation would have no impact on the investigations in other jurisdictions because they were not investigating Nama.

Fianna Fáil finance spokesman Michael McGrath said in the debate a commission would run into the sand very quickly because of arrests being made in Northern Ireland.

Opposition TDs said it would take up to three years for the criminal investigation to be completed.