O'Connell was then elected as Ceann Comhairle of Dáil Éireann, and resigned from the European Parliament, to which he had been elected as an MEP for the Dublin constituency in the first direct elections in 1979. (His election to the first directly-elected European Parliament in 1979, along with running-mate Michael O'Leary, was an extraordinary achievement for the Labour Party.) He remained as Ceann Comhairle until December 1982, being returned automatically in the two elections of 1982. In 1983 he became a member of Fianna Fáil, representing the party until he lost his Dáil seat at the 1987 general election. That year he was one of those nominated by the Taoiseach Charles Haughey to the 18th Seanad Éireann, serving until he regained his Dáil seat at the 1989 general election.