Nevertheless, on Palmerston's return to power, he, on 26 July 1861, made Peel Chief Secretary for Ireland and a privy councillor. In this position his careless good humour pleased the Irish and the prime minister, and he almost thought he had solved the Irish question when he made excursions incognito through the country on a jaunting-car and interviewed the peasants. His speeches were very optimistic; but, before his connection with the castle ended, fenianism came to a head. Irish debates became more embittered, and his replies and speeches in parliament lacked discretion and were not calculated to promote peace. In February 1862 he received a challenge from the O'Donoghue, but the matter was brought before the commons on 25 February and was adjusted. Although he took a warm interest in some Irish questions, especially higher education, which he had aided by a handsome contribution to the Queen's Colleges founded by his father, his career in Ireland was a failure. When the Liberal government was reconstituted, after the death of Lord Palmerston, by Lord John Russell, to whom Peel's failings were peculiarly obnoxious his post was filled by Chichester Fortescue and he did not again hold office. On 5 January 1866 he was created G.C.B..