The director of the Limerick Institute of Technology (LIT) is set to resign after a Fianna Fáil councillor and current staff member was appointed chairman of the college's governing body.
The Minister for Education, Mr Dempsey, appointed Mr John Gallahue as chairman last week. But the appointment has unleashed a storm of protest across the institute of technology sector.
Senior sources in the sector said the appointment of Mr Gallahue, a serving member of staff at the institute, undermined the authority of the director.
The college's director, Mr Pat MacDonagh, is said to be furious about the appointment which, he claims, limits his ability to make decisions. Both men have clashed on personnel issues in the past.
It is expected Mr MacDonagh will formally resign his €120,000-a-year post when the college's governing body meets next Tuesday. A spokeswoman for Mr Dempsey said no letter of resignation had been received from Mr MacDonagh, but she would make no further comment.
Fianna Fáil sources say Mr Gallahue, a construction lecturer at LIT, is a dynamic figure whose "tough-minded" approach is needed at the college.
In recent years LIT has been beset by personnel and other problems. One college lecturer has been suspended on full pay amid allegations of exam cheating by his son. Senior sources in the sector yesterday expressed unease about the appointment. One said: "It is vital that governing body chairpersons are detached from day-to-day decision-making and management.
"The appointment of a current staff member in Limerick makes a nonsense of this."
Mr Gallahue is a well-known figure in the Limerick area. A one- time poll-topper as an independent councillor, he is now a key backroom Fianna Fáil figure. He was central in the campaign which allowed the party to secure two seats in the Limerick West constituency in the last election.
The directors in the 13 institutes across the State direct policy on a day-to-day basis. They are answerable to the chairman of the governing body, which is an honorary unpaid post.
Mr Gallahue's appointment brings the number of serving staff members on the governing authority to five.
One third-level source said it would be "virtually impossible" for any director to run the college effectively in such circumstances.
Mr MacDonagh was not at his desk yesterday and was unavailable for comment.
It is understood that the registrar is acting director of the college until Mr MacDonagh makes his intentions known at next Tuesday's meeting.
It is expected that some effort will be made to resolve the dispute before the meeting. But it is thought that Mr MacDonagh will press ahead with his resignation unless Mr Gallahue vacates his position.
Mr Gallahue was unavailable for comment yesterday.
A senior source in the sector pointed out how universities can only appoint chairpersons of governing bodies from their own membership or from outside the college.
"A precedent has been set which could have very serious implications for the sector", he said.