The Government faces a further possible delay in the appointment of the former Supreme Court judge, Mr Hugh O'Flaherty, as vice-president of the European Investment Bank, with the threat of further court action by Limerick lecturer Mr Denis Riordan.
Mr Riordan said yesterday that he would be appealing the High Court ruling that the Government was free to go ahead with the controversial appointment of Mr O'Flaherty to the position, which has a salary of £147,000 a year.
If this fails, he said he would consider bringing the case to the European Court of Justice.
Although it is free to proceed, the Government was last night seeking clarification on the matter. A spokesperson for the Minister for Finance said it was examining the decision and was consulting the EIB.
Government sources were insisting that the EIB would have no objections to the nomination going ahead and that the Supreme Court appeal would not slow up the nomination process.
However, sources said the Government did not want to be seen to disregard the judicial process and wanted to consult other member-states to get their views on what action to take in the event of further legal action.
There was speculation last night that it would be very difficult for the Government to proceed with the nomination if a Supreme Court appeal was pending.
Mr O'Flaherty's would not comment last night. His wife, Mrs Kay O'Flaherty, said her husband would not be making any comment until he had read the judgment in full.
The Taoiseach will face questions on the controversy in the Dail today when Fine Gael raises the matter on the Order of Business. The party's spokesman on justice, Mr Jim Higgins, said the party would attempt to table a special notice question on the issue if the Taoiseach did not give a satisfactory answer.
The High Court yesterday ruled that it had no function to intervene in the Government's nomination of Mr O'Flaherty for the appointment as vice-president of the EIB.
Mr Justice Morris rejected the claim of college lecturer Mr Riordan, of Clonconane, Redgate, Limerick that the procedure adopted to nominate Mr O'Flaherty was a failure on the part of the Government to hold all citizens equal before the law.
In a reserved judgment, Mr Justice Morris said he was satisfied that the Government made an executive decision when it nominated Mr O'Flaherty and he did not accept Mr Riordan's submission that this was a mere administrative procedure.
Both Fine Gael and Labour last night called on the Government to withdraw Mr O'Flaherty's nomination.
Mr Higgins said yesterday's High Court decision should in no way deflect attention from the fact that Mr O'Flaherty's appointment by the Government was an "indefensible example of blatant political patronage and a major abuse of office"
He said "it is Fine Gael's intention, if returned to government, to have all of the circumstances surrounding the Sheedy case thoroughly examined".
A Labour Party spokesman said even at this late stage the Government should not nominate Mr O'Flaherty. By withdrawing the appointment the Government had an opportunity to repair some of the damage it had inflicted on the body politic.
The decision last month to give Mr O'Flaherty the plum Eurojob was "the action of an out-of-touch and arrogant Government which has only served to deepen public cynicism and the political process," the spokesman added.
News of the appointment sparked a storm of protest. Mr O'Flaherty and High Court judge Mr Cyril Kelly resigned their positions following the controversy after Philip Sheedy's sentence was reduced.