Constitutional background Sir John Kerr
Gough Whitlam Malcolm Fraser As established by the Constitution of Australia, the
Parliament of Australia is composed of two houses, the
House of Representatives and the
Senate, together with the
monarch. The monarch is represented through the
governor-general, whom the monarch appoints (and therefore may remove) on the advice of the prime minister. Formally, the governor-general may exercise all of the
Commonwealth's executive power; however, in practice they are generally bound by
convention to act only upon the
advice of the
prime minister and the government. The limited number of powers that may be exercised without advice and according to the governor-general's own discretion are known as the
reserve powers. These powers are also governed by convention. For example, the appointment and dismissal of a prime minister is a reserve power, but convention dictates that ordinarily only somebody who has the confidence of the House of Representatives may be appointed. As in most
Westminster system parliaments, Australia's government is ordinarily formed by the party enjoying the
confidence of the lower house of parliament, the House of Representatives. Australia's Parliament also has a powerful upper house, the Senate, which must pass any bill initiated by the House of Representatives if it is to become law. The composition of the Senate, in which each state has an equal number of senators regardless of that state's population, was originally designed to attract the Australian colonies into one Federation. Some at the time of Federation saw the contradiction in the
Constitution between
responsible government, in which the executive owes its existence to the legislature or one dominant house of the legislature, and,
federations with the houses of bicameral legislatures operating independently and possibly deadlocking. Certain delegates predicted that either responsible government would result in the federation becoming a
unitary state or federalism would result in an executive closer to federal theory. For instance, delegate
Winthrop Hackett stated at the
1891 Convention that as a result of the combination of a strong Senate with responsible government, "there will be one of two alternatives—either responsible government will kill federation, or federation in the form in which we shall, I hope, be prepared to accept it, will kill responsible government". Constitutionally, the Senate is unable to originate or amend a
money bill coming from the House, although it may return the bill to the House with requests for amendment; or, as with any other bill, it may reject the bill entirely. Whether there was nevertheless a convention that the upper house should not reject money bills from the lower house was a key issue in the dispute. During and after the crisis, Whitlam argued for the existence of this convention; however previously as Leader of the Opposition he had supported the blocking of supply, stating of a budget bill: "Let me make it clear at the outset that our opposition to this Budget is no mere formality. We intend to press our opposition by all available means on all related measures in both Houses. If the motion is defeated, we will vote against the Bills here and in the Senate. Our purpose is to destroy this Budget and destroy the Government which has sponsored it." The Senate had never blocked supply before 1975, even when it had been controlled by the opposition. However, the
Parliament of the state of Victoria had done so in 1947, in response to the federal
Chifley government's
attempt to nationalise the banks. The coalition-controlled upper house blocked the state budget in order to force a premature election. Labor premier
John Cain called a
snap election and was defeated. Prior to the 1975 crisis, the governor-general's power to dismiss a prime minister against the incumbent's will under
section 64 of the Constitution had never been exercised. Twice since Federation, conflicts between
state premiers and
state governors, who perform analogous functions to the prime minister and governor-general respectively at the state level, had resulted in the departure of one or the other. In 1916, New South Wales premier
William Holman was expelled from the
Australian Labor Party for supporting conscription. He managed to hold on to power with the aid of opposition parties and consulted the governor,
Sir Gerald Strickland, proposing to pass legislation to extend the term of the
lower house of the state legislature by a year. When Strickland objected, stating that such a course was unfair to Labor, Holman had him replaced.
In 1932 the New South Wales Labor premier,
Jack Lang, refused to pay money owed to the federal government, which froze the state's bank accounts, causing Lang to order that payments to the state government be only in cash. The governor,
Sir Philip Game, wrote to Lang to warn him that this was unlawful. Game further warned Lang that if Lang continued, he would have to sack Lang to obtain ministers who could carry on government within legal bounds. Lang replied that he would not resign, and
Game dismissed his government and commissioned the leader of the opposition,
Bertram Stevens, to form a caretaker government pending a new election, in which Labor was defeated. Among the powers granted to the governor-general is the power to dissolve both houses of Parliament under section 57 of the Constitution in the event that the House of Representatives twice passes a bill at least three months apart and the Senate refuses to pass it. In both instances where those circumstances arose prior to the
Whitlam government, in 1914 and 1951, the governor-general dissolved Parliament for a
double dissolution election on the recommendation of the prime minister.
Political background Gough Whitlam's Labor government was
elected in 1972 after 23 years of rule by a
coalition formed by the
Liberal and
Country parties. The ALP Government enjoyed a nine-seat majority in the House of Representatives, but did not control the Senate, which had been elected in
1967 and
1970 (as Senate elections were then out of synchronisation with House of Representatives elections). In accordance with pre-election promises, it instituted a large number of policy changes, and offered much legislation. The opposition, which still controlled the Senate, allowed some government bills to pass the Senate, and blocked others. In April 1974, faced with attempts by the opposition under
Billy Snedden to block supply (appropriation bills) in the Senate, Whitlam obtained the concurrence of the governor-general,
Sir Paul Hasluck, to a double dissolution. Labor was returned at the
election on 18 May with a reduced House majority of five seats. The Coalition and Labor each had 29 Senate seats, with the balance of power held by two independents. Snedden later told author
Graham Freudenberg when being interviewed for the book
A Certain Grandeur – Gough Whitlam in Politics: "The pressure [to block supply] was on me from Doug Anthony|[Doug] Anthony. We thought you had a chance of getting control of the Senate at the
half-Senate election or at least enough to get a
redistribution through. With a
gerrymander, you'd be in forever." Hasluck had been governor-general since 1969, and his expected term was shortly due to expire. Whitlam wanted him to remain a further two years, but Hasluck declined, citing the refusal of his wife,
Alexandra, to remain at
Yarralumla longer than the originally agreed five years. Finally, Whitlam turned to his fifth choice,
Sir John Kerr, the
chief justice of New South Wales. Kerr was reluctant to give up the chief justiceship, in which he intended to remain another ten years, for the governor-general's post, which traditionally lasted five years. At Kerr's request, Whitlam informally agreed that if both men were still in office in five years, Kerr would remain governor-general for another five years. Whitlam also secured legislation to address Kerr's financial concerns about the position, including authorising a pension for the governor-general or his widow. The leader of the opposition,
Billy Snedden, was enthusiastic about the appointment and also agreed to keep on Kerr in five years, were he prime minister at the time. Kerr then agreed to take the post, was duly appointed by Queen
Elizabeth II, and was sworn in on 11 July 1974. Six of the bills that had been the subject of the double dissolution were introduced in Parliament a third time and, as expected, were again rejected by the Senate. Section 57 of the Constitution provides that, after a
double dissolution election, if bills that had been rejected twice by the Senate in the previous parliament were again passed by the House and again rejected by the Senate, they could then be put to a
joint sitting of both houses. On 30July, Whitlam gained Kerr's agreement for a joint sitting, which was set for 6–7 August 1974.
The joint sitting, the only one in Australia's history under section 57, passed all six bills, including the enabling legislation for
Medibank.
Controversy and vacancies In December 1974, Whitlam was anxious to find new sources of money to finance his development plans. After a meeting at the prime minister's residence,
The Lodge, Whitlam and three of his ministers (
deputy prime minister and
treasurer Jim Cairns,
attorney-general Lionel Murphy, and minister for minerals and energy
Rex Connor) signed a letter of authority for Connor to borrow up to US$4 billion. This letter was described by author and journalist
Alan Reid as the "death warrant of the Whitlam ALP government". Connor and other ministers had made contact with a hitherto obscure Pakistani financier, Tirath Khemlani, as early as November 1974. Khemlani was said to have contacts in the newly enriched Arab oil nations. None of the efforts to secure a loan, whether through Khemlani or by other routes, bore fruit, but, as information about the "
Loans Affair" trickled out, the government lost support. In February 1975, Whitlam decided to appoint Murphy a justice of the
High Court of Australia, even though Murphy's Senate seat would not be up for election if a half-Senate election were held. Under
the Senate's electoral system, Labor could win three of the five New South Wales seats, but if Murphy's seat was also contested, it was most unlikely to win four out of six. Thus, appointing Murphy would almost certainly cost the ALP a Senate seat at the next half-Senate election. Whitlam appointed Murphy anyway. By convention, senators appointed by the state parliaments to fill
casual vacancies were from the same political party as the former senator. The New South Wales premier,
Tom Lewis, a member of the Liberal Party, argued that this convention only applied to vacancies caused by deaths or ill-health, and arranged for the legislature to elect
Cleaver Bunton, former
mayor of Albury and an independent. By March 1975, many Liberal parliamentarians felt that Snedden was doing an inadequate job as leader of the opposition and that Whitlam was dominating him in the House of Representatives. Malcolm Fraser
challenged Snedden for the leadership on 21 March, and defeated him by 37 votes to 27. At a press conference after winning the leadership, Fraser stated: Whitlam's original deputy prime minister,
Lance Barnard, had been challenged and defeated for his post by Cairns in June 1974 shortly after the
May 1974 election. Whitlam then offered Barnard a diplomatic post; in early 1975 Barnard agreed to this. If the appointment went through, Barnard's resignation from the House of Representatives would trigger
a by-election in his Tasmanian electorate of
Bass. ALP officials felt that, given the party's weakened state, Barnard should remain in Parliament and be given no preferment if he resigned; party president and future prime minister
Bob Hawke described the decision to appoint Barnard as "an act of lunacy". Barnard had been losing support over the last several elections, and the Liberals needed only a swing of four percent to take Bass off Labor. The Liberals had a candidate,
Kevin Newman, who had been nursing the electorate; Labor had no candidate selected and a bitter preselection in the offing. Barnard resigned and was appointed the ambassador to Sweden. The
election on 28 June proved a disaster for Labor, with Newman winning the seat on a swing of over 17%. The next week, Whitlam fired Cairns for misleading Parliament regarding the Loans Affair amid innuendo about his relationship with his Principal Private Secretary,
Junie Morosi. He was replaced as deputy by
Frank Crean. At the time of Cairns' dismissal, one Senate seat was vacant, following the death on 30 June of Queensland ALP senator
Bertie Milliner. The state Labor party nominated
Mal Colston, who was the highest unelected candidate on the party's Queensland list in 1974. This resulted in deadlock in Brisbane; the unicameral
Queensland Parliament twice voted against Colston, and the party refused to submit any alternative candidates. Queensland
Country Party Premier
Joh Bjelke-Petersen had evidence that Colston, a school teacher by trade, had set a school on fire during a labour dispute, though the police had refused to prosecute. After the Queensland Parliament voted Colston down a second time, Bjelke-Petersen instructed his majority in the Queensland Parliament to elect a low-level union official,
Albert Field, who had contacted his office and expressed a willingness to serve. In interviews, Field made it clear he would not support Whitlam. Field was expelled from the ALP for standing against Colston, and Labor senators boycotted his swearing-in. Whitlam argued that because of the vacancies being filled as they were, the Senate was "corrupted" and "tainted", with the opposition enjoying a majority they did not win at the ballot box. When Labor learned that Field had not given the required three weeks notice to the
Queensland Department of Education, it challenged his appointment in the High Court, arguing that he was still technically a public servant–and thus ineligible to serve in the Senate. With Field on leave throughout the remainder of the crisis, the Coalition refused to provide a
pair to account for his absence, giving it an effective majority of 30–29 in the Senate. Whitlam remarked that if Milliner had not died or had he been replaced by a pro-Whitlam senator, the crisis would not have happened. == Deadlock ==