In January 1993, Callbeck returned to provincial politics to successfully run for the leadership of the
Prince Edward Island Liberal Party and was appointed Premier on 25 January. Under her leadership the Liberals won the
1993 provincial election, making her the first female leader of a political party in Canada to lead her party to victory in a general election while winning her own seat. Callbeck was premier at the same time as the other three most important public offices in the province were also held by women:
Elizabeth II was
Sovereign in Prince Edward Island,
Marion Reid was the
Lieutenant Governor, and
Patricia Mella was the
Leader of the Official Opposition. In addition, the two most elected senior roles within the
Legislative Assembly of Prince Edward Island were held by women during Callbeck's time in office:
Nancy Guptill was
Speaker of the Legislative Assembly of Prince Edward Island and
Elizabeth Hubley as Deputy Speaker. Callbeck's time in office was marked by significant progress. Spurred by new investments in food processing, manufacturing, aerospace and information technology, the rate of economic growth between 1993 and 1996 was the second highest in Canada. The number of people working in the province reached a record high. The unemployment rate dropped by a whopping seven per cent, the largest reduction of any province in Canada. Coming into office, the Callbeck government pledged to bring the high budget deficit under control. Under her predecessor, the deficit had risen to an all-time high of $89 million. Through a combination of rising revenues due to the stronger economy, and what a national accounting firm called one of the most aggressive deficit-cutting strategies in the country, the Callbeck government brought in a surplus budget in 1995–96. it was the first budget surplus in a decade. Reaching a surplus budget, however, did not come without a political cost. Public service salary rollbacks were widely opposed by public service unions - but no jobs were cut. There were other accomplishments. A new agreement on electricity with New Brunswick resulted in lower electrical costs. A new waste management project put Prince Edward Island as a leader in Canada in reducing the amount of waste going into landfills. In keeping with Callbeck's commitment to strengthen social programs, new investments were made in health and education. There were significant reforms. Municipal amalgamation reduced duplication and overlap in the province's larger municipalities. The number of government departments, agencies and crown corporations was reduced. A new electoral system replaced the previous 16 dual-member ridings with 27 single-member ridings. It was the first significant electoral reform in more than a century. Callbeck's time in office saw the beginning of construction of the
Confederation Bridge linking Prince Edward Island to New Brunswick. When Callbeck came into office, the project was stalled because of an impasse between federal and provincial officials. She worked closely with the federal public works minister to resolve the issues, and the resulting constitutional change paved the way for the largest capital project in the history of the province.
Resignation Callbeck resigned in October 1996 after only three and a half years as PEI's premier. The Liberal party lost the provincial election in
November 1996 as well as the next two general elections, only returning to power in the
2007 election. ==Senator==