1989 Merthyr state by-election

Lane, who had been a member of the Liberal Party until shortly after the 1983 election, had admitted that he had misappropriated funds during his time as a minister in Sir Joh Bjelke-Petersen's government, which was being investigated by the Fitzgerald Inquiry.

The media, led by The Courier-Mail newspaper, questioned the morality of a confessed dishonest politician continuing a Parliamentary career at the expense of taxpayers.

Upon his resignation, despite the Labor Party's opposition to any further entitlements, he collected a superannuation payout of A$535,000 and awaited charges from the inquiry's special prosecutor, Doug Drummond QC.

A local car salesperson, Betty Byrne Henderson, won National Party preselection and campaigned on the slogan "Send a Message to Canberra".

However, as a cross-bench party in the position of attacking an unpopular government while trying to avoid voters switching to the Labor opposition, and in some key seats dependent upon preference flows from National voters, some analysts suggested that if the government's support was to collapse completely in South East Queensland, Labor rather than the Liberals could become the key beneficiaries of the changing political tide.