[2] Watkins resigned as Deputy Premier and Minister for Transport and retired from parliament on 8 September 2008, prompting a Cabinet reshuffle.

This was a marked turnaround to the result at the 2007 state election, when Watkins was reelected with 60.09% of the two-party preferred vote.

Additionally, Watkins' resignation had touched off a domino effect that ultimately resulted in Premier Morris Iemma leaving politics as well.

Combined with Labor's declining poll numbers, commentators thought it was vulnerable to being taken by the Liberals.

The loss of Ryde significantly weakened the standing of Iemma's successor, Nathan Rees, who would himself be ousted in a party room coup a year later.