However, others simply blamed the bad economic conditions on lack of investment in the state for fear of minority government.
There were numerous proposals including having three multi-member seats in the Tasmanian House of Assembly electing nine members each.
The Labor Party proposal was backed by many business groups and the Legislative Council as it would reduce the chance of a minority government.
One Liberal member, Bob Cheek, crossed the floor to support Labor's proposal; he was later forced to resign from his position as secretary for small business.
Rundle called an election immediately after declaring support for the move, knowing that the Greens would launch a no-confidence vote against him.
After the size of parliament was reduced, Rundle lost the following 1998 state election and became the opposition leader.