The Taoiseach Enda Kenny has denied that he took part in any form of "an illegal scam" as far back as 2013 to hide the car emissions scandal.

Fianna Fáil leader Micheál Martin is quoted a New York Times report that suggests Enda Kenny assisted German Chancellor Angela Merkel to delay and water down new European laws on emissions.

However, Mr Kenny has reacted furiously at suggestions he did anything wrong.

“You seek now to tie this in with the Volkswagen scandal in the United States and you want to lump Ireland in with being a party of that,” said the Taoiseach.

“That’s beneath you Deputy Martin. You’re now suggesting that the German Chancellor, in a phone call about normal business to myself, that we were subsequently involved in some sort of illegal scam.

“That's beneath you too Deputy Martin.”