Fianna Fáil is facing heavy losses in many local election constituencies, faltering under a mid-term backlash from voters and a powerful surge in Sinn Féin support.
With just 75 councillors elected this evening Fine Gael has secured 25 seats, Fianna Fáil 20, Sinn Féin 16, Labour six seats while have seven. The Progressive Democrats have one seat.
Sinn Féin has performed particularly well in Dublin where tallies suggest it has increased its share of the vote from 3.5 per cent in 1999 to nearly 10 per cent.
In Monaghan, with 80 per cent of the votes counted, Sinn Féin have secured 44 per cent of the vote. Fianna Fáil, which had a poor performance in the last local elections, look set to sustain futher losses today.
Tallies from Waterford suggest that Sinn Féin will take a seat there for the first time in 80 years. It also looks as though the party will take its first seat ever on Fingal County Council in north Dublin in the Mulhuddart ward.
Support for Fine Gael holding steady and the party is now hopeful of adding to its total of 275 seats. Its councillor Mr Liam Brazil was the first councillor declared elected in the State when he won a seat in the Waterford County area of Kilmacthomas.
In certain parts of the country the Fianna Fáil vote is under severe pressure, particularly in Dublin and also in Limerick, where it is reported to have collapsed.
Commenting on his party's performance this evening, the Minister for Education, Mr Dempsey said: "It could have been worse. I think we were expecting to take a hit. I think we are taking that hit. . . . it is regretable but not a disaster by any means."
Tallies suggest the Fianna Fáil vote may have dropped 6 per cent nationally, and in some counties like Louth where it is reported to be down 10 per cent, even further.
Labour, the Green Party and Independents also look set to make gains.
Little change is predicted in the Fine Gael-dominated council in Longford. The big issue here is whether the party - which has 10 of the 21 seats on Longford County Council - can gain an extra seat to give it outright control.
In Westmeath, Fianna Fail look set to lose ground and Athlone, where Fianna Fáil holds five of the seven seats and Fine Gael has two, is a key battleground with all the sitting councillors seeking re-election.
An exit poll carried out by Lansdowne Market Research for RTÉ confirmed Fianna Fáil is facing substantial losses with Sinn Fein and independent candidates making gains.
Some 3,300 people throughout the State were interviewed after voted yesterday.
The poll indicated 33 per cent support for Fianna Fail, Fine Gael at 26 per cent, Labour on 13 per cent, Sinn Fein on 10 per cent, the Green Party on 4 per cent, Progressive Democrats on 2 per cent and independents on 13 per cent.