The Ministry was reconstituted on 28 February 1989 following the 1989 election, due in part to the defeat of one minister, Barry Hodge (MLA for Melville), and the Parliamentary Secretary of the Cabinet, John Read (MLA for Mandurah), by opposition Liberal candidates.
The second term of the Ministry was a particularly difficult one due to ongoing revelations relating to the government's past dealings with relation to WA Inc, and with a federal election approaching, considerable pressure was being exerted on the State Government.
On 7 February 1990, a majority of the 47-member Labor caucus signed an open letter calling on Dowding to step down, and in a caucus meeting on 12 February 1990, Dowding and Parker resigned[citation needed].
He designated 17 principal executive offices of the Government and appointed the following ministers to the positions, who served until the Lawrence Ministry was established on 19 February 1990.
On 12 February 1990, Premier Peter Dowding resigned all of his ministerial portfolios, being replaced in them temporarily by Carmen Lawrence, who retained Education and Aboriginal Affairs.