His main drawback was his close association with the Melbourne horse-racing, boxing and gambling identity John Wren, who was widely suspected of corruption.

However, the alliance broke down in 1928 in the face of a prolonged and violent industrial dispute on the Melbourne waterfront, and in November his government was defeated in a confidence vote and he resigned, being succeeded by the Nationalist William Murray McPherson, who had the support of the Victorian Country Party.

The Depression had a particularly devastating effect on Victoria's economy and society, because the state was still more heavily dependent than the rest of Australia on agricultural exports, mainly wheat and wool, for its income; those industries collapsed almost completely as demand in Britain dried up.

Even if it had been innately inclined to attempt radical solutions (which it was not), it depended on Country Progressive support in the Assembly, and had only six members in the Legislative Council.

Unlike New South Wales ALP Premier Jack Lang, Hogan adopted the orthodox economic view that governments must balance their budgets.

On the advice of Sir Otto Niemeyer, a senior official of the Bank of England (which controlled most of Victoria's access to credit in the City of London), they agreed to radical cuts to government spending and borrowing.

This provoked a storm of protest in the trade unions and among many sections of the Labor Party, which regarded Scullin and Hogan as traitors.

During June 1931, a second conference produced the Premiers' Plan, which entailed further cuts in government spending, accompanied by increases in taxation on the wealthy.

The Labor Party executive expelled everyone who had supported the Premiers' Plan, including Hogan, although it did not run a candidate against him in Warrenheip and Grenville.

Hogan was appointed Minister for Agriculture and Mines, and held those posts through Dunstan's record term as Premier, which lasted until September 1943.