The Minister for Finance, Mr Cowen, is prepared to approve a five-year contract extension for the president of University College Cork (UCC), Prof Gerry Wrixon, in a move which could provoke legal action by senior academics.
The Department of Finance is understood to have been concerned that the contract extension for 64-year-old Prof Wrixon could have a knock-on effect on the wider public service, but it is now ready to agree to the extension. Under the Universities Act, a president can hold office for 10 years, but not if he reaches the age of 65 first.
There is concern that an extension of the president's contract might intensify divisions at UCC. Prof Wrixon is credited by some in the university as being the driving force behind its success, but his "pro-business" approach is opposed by others. Fears have also been raised that a decision to allow him to stay on past the age of 65 could set a precedent for senior academics in UCC and other universities.
Last month Mr Cowen referred the matter back to the Minister for Education and Science, Ms Hanafin, for clarification of certain "technical difficulties" arising from amendments to UCC's statutes, which the extension requires. He is still awaiting a formal response before agreeing to the move.
The Department of Finance said that the substantive issue of whether Prof Wrixon could be granted an extension did not concern it; but, insofar as it involved changes to the pension scheme at the college, these had to be passed by the Minister.
"Earlier this year, a proposal was put to the Minister for Finance which involved an amendment to the pension scheme," it said in a statement. "Having considered the proposal, the Minister concluded that there were technical difficulties with the mechanism proposed and referred the matter back to the Minister for Education and Science for further consideration."
Mr Cowen's concerns are understood to revolve around the original proposals relating to pensions, which have since been superseded by changes in superannuation legislation.
Mr Brian Dunnion, director of marketing and communications at UCC, reiterated that Mr Cowen had confirmed that, once changes were made to the original proposals, he would be approving the contract extension. He added that new amendments to the college's statutes had been passed by the college's governing body last week. These had taken into account the recommendations of the Attorney General and the Department of Finance.
However, the Department of Finance has said that it has yet to receive details of the proposed amendments to UCC's statutes.
Prof Patricia Coughlan, a governor of UCC, who was present at last week's meeting of the governing body, doubts whether the new amendments would survive a legal challenge. She and other senior academics at the college would, she said, be willing to launch a challenge, if necessary.
"I'm not a legal expert. But I don't see any such change as being possible. The difficulties may be insurmountable. Depending on the advice of our lawyers, we will consider mounting a legal challenge."
A Department of Education and Science spokeswoman acknowledged that it had received a request for clarification from Mr Cowen on draft amendments to UCC's statutes.