McMahon government

Then-Prime Minister John Gorton with William McMahon shortly after the unsuccessful leadership challenge in 1969.

John Gorton became Prime Minister of Australia on 10 January 1968. He was chosen to lead the Liberal Party in place of Harold Holt, who had drowned in rough surf off the Victorian coast. William McMahon was then serving as Deputy Leader of the Liberal Party, but Country Party leader John McEwen ruled out maintaining the Coalition if McMahon became Prime Minister. McMahon as Treasurer had resisted McEwen's support for high levels of protection for manufacturing.[1] Defence and Australia's commitment to the Vietnam War was a prominent issue during the term of the Gorton government; funding for the arts was expanded, rates of pay were standardised between the men and women and the mining industry grew during the period. A policy of economic centralisation led to friction with State leaders and difficulties within the coalition. Gorton departed the office of Prime Minister on 10 March 1971 after a tied Liberal party room vote of confidence in his leadership.[2]

The Liberal-Country Party Coalition had been in office continually since 1949. In April 1967, Gough Whitlam replaced Arthur Calwell as leader of the Labor Party and Leader of the Opposition. Labor reduced the Gorton government's majority and came within four seats of government at the 1969 election; McEwen dropped his veto against McMahon, and McMahon subsequently and unsuccessfully challenged Gorton for the leadership. The government also performed poorly in the 1970 half-Senate election, adding to pressures on Gorton's leadership. Defence minister Malcolm Fraser developed an uneasy relationship with Gorton and in early 1971, Fraser accused Gorton of being disloyal to him in a conflict with Army officials over progress in South Vietnam.[3] On 8 March 1971, Fraser resigned and announced in parliament the following day that Gorton was "not fit to hold the great office of Prime Minister".[2]

On 10 March, the Liberal party room moved to debate and vote on a motion of confidence in Gorton as party leader, resulting in a 33–33 tie. In response Gorton said ‘that is not a vote of confidence’ and resigned as leader. McMahon replaced Gorton as Prime Minister. Gorton was elected deputy leader. His relations with Fraser did not recover.[4]

William McMahon had joined the Parliament in 1949 and by 1951 had been promoted to Minister for the Navy and for the Air. He had served as a major during the Second World War, and worked on home defence.[1] He served as Minister for Primary Industry (1956–58) and Minister for Labour and National Service (1958–66) in the Menzies government, then as Treasurer (1966–69) in the Holt government and Gorton government, and finally as Minister for External Affairs (1969–71) in the Gorton government. He was married to Sonia McMahon, who maintained a high public profile.[4]

Deputy Prime Minister and Leader of the Country Party, Doug Anthony.

William "Bill" McMahon became Prime Minister of Australia on 10 March 1971, at the age of 63. The McMahon Ministry was sworn in by Governor-General Paul Hasluck with Country Party leader Doug Anthony as Deputy Prime Minister. McMahon moved Gorton's Treasurer, Leslie Bury to the Ministry for External Affairs and installed Billy Snedden as Treasurer.[4]

After taking office, McMahon told the press in March 1971:[1]

I am a party man. I believe in the Liberal Party and I believe it is the organ by which the national will and conscience will be put into effect.

United States President Richard Nixon with Prime Minister McMahon at the White House in 1971.

Disunity continued to affect the government, following the replacement of Gorton. Gorton had taken the senior Cabinet position of Minister for Defence but was forced to resign from Cabinet in August 1971, after McMahon accused him of breaching Cabinet solidarity.

Economy

McMahon with Treasurer Billy Snedden in April 1971.

As the 1972 election approached, inflation and unemployment were increasing and the world economy was entering the 1970s decline.[1][4] In 1971, the government delivered a deflationary budget in response to economic conditions - but in 1972, faced with the challenge of Gough Whitlam's vast program of expenditure, Treasurer Snedden delivered a more election-friendly high spending budget.[1]

McMahon did not recontest the leadership of the Liberal Party and became a backbencher. Several candidates ran for the party leadership, including John Gorton, but the party settled on Billy Snedden with Phillip Lynch as Deputy.[1] McMahon remained in the parliament as a backbencher for 10 years after losing office as Prime Minister. He retired in 1982.[7] Snedden led the Coalition to the 1974 Election. Malcolm Fraser became leader of the Liberals and led the Coalition to a landslide victory against Gough Whitlam's Labor Party, following the 1975 Dismissal of the Whitlam government.

• History of Australia
• History of Australia since 1945
• McMahon Ministry