The premier of Western Australia, Brian Burke, who had been in power since 1983, was replaced by Peter Dowding in February 1988 in an amicable transition.
[1][2][3] During the District Court trial of Western Colleries Limited[a] director Tony Lloyd, his defence lawyers argued that Premier Dowding and Acting Energy Minister Julian Grill had ordered Lloyd to pay off a Rothwells debt using a $15 million cheque.
In January 1990, Lloyd was found guilty of acting improperly, making him the first person convicted for an offence relating to WA Inc.[b] This made the Dowding Labor Government even more unpopular,[2][5][4] with opinion polls showing support was as low as 32%.
[2][3][6] State Secretary Stephen Smith, FMWU Secretary Jim McGinty, and seven Labor politicians – Carmen Lawrence, David Parker, Ian Taylor, Kay Hallahan, Keith Wilson, Geoff Gallop and Pam Beggs – met together to discuss Peter Dowding's leadership.
[7] On 8 February 1990, Dowding returned early from the World Economic Forum in Switzerland in order to shore up his leadership, spending the next several days speaking to party members in an attempt to ensure their support.
[2][4][12] An opinion poll showed that support for the federal Labor Party in Western Australia increased following the leadership change.