Later Life
Returning to civilian life, Dougherty contested the seat of East Sydney as a Liberal candidate in the 1946 election. The seat was a blue ribbon Labor seat held by Eddie Ward, and Dougherty lost.
Dougherty returned to teaching, accepting a post as headmaster of Enmore Activity School in 1946. In 1948, he became Inspector of Schools in the Bega District. He left the New South Wales Education Department in 1955 to become the first Director of the New South Wales Defence Organisation and State Emergency Services, a position he held until retirement in 1972. He was knighted on 7 June 1968 for "services to ex-servicemen and the community".
Dougherty remained in the Army as a reservist. He assumed command of the 8th Infantry Brigade in 1948. He was promoted to major general in 1952 on taking command of the 2nd Division. In 1954, he became the CMF member of the Military Board, which he held until his retirement from the Army in 1957. Dougherty again clashed with Sir Henry Wells, now Chief of the General Staff. Dougherty felt that he should be Chairman of the Military Board when Wells was absent, being the next most senior member. Wells denounced "the impertinence of a part-time soldier wanting to be the chairman of a board of regular soldiers!" Dougherty replied, "No we are all the same, we are all soldiers." In 1960, the Minister for the Army, John Cramer, attempted to appoint Dougherty as Chief of the General Staff in succession to Lieutenant General Sir Ragnar Garrett. The proposal got as far as cabinet, where it was defeated.
Dougherty was a fellow of the Senate of the University of Sydney from 1954 to 1974, and served as Deputy Chancellor from 1958 to 1966. The University awarded him an honorary degree of Doctor of Laws in 1976. It also named the Ivan Dougherty Gallery in his honour. As a result, his name is today widely associated with fine art.
After a long illness, Dougherty died on 4 March 1998, survived by Lady Phyllis and his four remaining children. More than 500 people, including an estimated 200 men who had served under him in World War II, gathered at St. Andrew's Cathedral, Sydney to pay tribute to him. He was cremated at Sutherland Cemetery.
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