However, Cllr Shortt said just because this was a period of cutbacks, didn't mean we should abandon visionary ideas.

Funded by private philanthropic donations, for this specific purpose, Cllr Shortt said the residence will provide inspiration for the university's architecture students, as it has been designed by the award-winning Irish architect Shelley McNamara of Grafton Architects.

"Our university has not been standing still, and that it a very good thing. It will be an inspiration to young architects studying there.

"I think the money is being well spent, and we need a bit of vision at the moment. Maybe we could take a leaf out of their book in the city.

"UL is terribly important to the image of Limerick city itself. If UL proved to be prestigious internationally then that benefits Limerick," said Cllr Shortt.

He said the house possessed a number of attributes, including its architectural design, environmentally friendly features such as geothermal heating whereby "it could pay for itself in time", and the fact that its president will reduce commuting and congestion by "literally living on the job."

He agreed that third level fees were being "brought in by the back door", but said the "small sum of money" being spent on this project was "good value."

Peadar Cremin, president of Mary Immaculate College and a member of UL's Governing Authority, did not express any criticism of the project.

Instead, he said, he wished "that the foundation at Mary Immaculate College could find as generous a donor to support the many ways in which we make a difference to our community."

His comments followed those of Mayor Kevin Kiely, who earlier this week called for Prof Don Barry's residence at UL to be "scrapped".

Mayor Kiely, who also sits on the Governing Authority, believes the multimillion euro property, "should be sold and funds reinvested in education".

"I totally agree that a residence like that is too lavish. There is no need for it. The money should be invested in educational purposes. I am totally opposed to it. It should be scrapped straight away. It's sending out the wrong message," he said.

Prof Barry is due to move into the property at Garraun, Clonlara, next month.

The Limerick Leader first reported that the university president was to have his own residence on campus in May 2007, following Prof Barry's appointment.

But just last week, Minister O'Keeffe called for a report into the five-bedroom, three-storey residence.