He was elected to
Ross Smith in the
South Australian House of Assembly at the
1977 election and promoted to cabinet within a year. Following the resignation of Premier
Don Dunstan and Labor's loss in the
1979 election, Bannon was elected to the Labor leadership. Despite factional struggles within Labor, the
Tonkin Liberal government oversaw the economy suffer through the
early 1980s recession. After just one term, Bannon managed to return Labor to government at the
1982 election with a 5.9 percent two-party swing but only a one-seat majority. for bushfire relief While there had been a stream of social reform during Don Dunstan's 1970-79 premiership, Bannon's priorities were oriented in economics. Bannon government achievements include the
Olympic Dam copper and uranium mine, the submarine project, the defence industry, the
Hyatt and
Adelaide Casino complex, conversion of part of the
Adelaide railway station into the
Adelaide Convention Centre, construction of the
O-Bahn Busway from 1983 to the 1986 to 1989 planning and construction of the
Tea Tree Gully O-Bahn extension, and the
Formula One Grand Prix. The government also sold land reserved for freeways under the
MATS plan. Other measures were introduced such as action to prevent destruction of vegetation and urban renewal programmes to invigorate some of the declining inner suburbs in Adelaide. The economic situation, very difficult in the early 80s, improved substantially in 1983–84. Bannon's government was easily re-elected at the
1985 election, achieving a 2.2 percent two-party swing towards them from the Liberal opposition and a four-seat majority. However, the economy experienced another downturn in the
late 80s/early 90s recession, and Bannon paid the price at the
1989 election, when the ALP won only 48 percent of the two-party vote: a swing of 5.2 percent against it. Both major parties won 22 seats each in the
hung parliament, two short of a majority. Labor was able to form
minority government with the
confidence and supply support of the two Labor
independent MPs,
Martyn Evans and
Norm Peterson. Peterson became
Speaker of the South Australian House of Assembly following the election. Shortly thereafter, electoral legislation was passed with the objective that the party which receives over 50 percent of the statewide
two-party vote at the forthcoming election should win the two-party vote in a majority of seats, through a compulsory strategic redrawing of electoral boundaries before each election, making South Australia the only state to do so. One element of the
Playmander remains to this day which contributes to the above: the change from
multi-member to
single-member seats. It was only the second time that a Labor government in South Australia had been re-elected for a third term (the first time was when Dunstan won in 1977). In April 1988, Bannon was elected Federal President of the Labor Party. He held that position until June 1991.
State Bank and resignation Bad lending decisions made by the
State Bank of South Australia's board and managing director Tim Marcus Clark were exposed. As the bank's owner, the government was the guarantor of $3 billion worth of loans. Bannon remained as Premier during three inquiries, the last two of which cleared him of any deliberate wrongdoing. Upon resigning as head of government, he announced that he would not contest his seat of
Ross Smith in the coming election.
Lynn Arnold replaced Bannon as Premier but was unable to stave off a landslide defeat at the
1993 election. Labor achieved just 39.1 percent of the two-party vote, and suffered a swing of 8.9 percent against it. As a result, it retained only 10 seats in a house of 47. Ross Smith was among the seats Labor retained despite suffering a 16% swing against it in its primary vote and an almost 11% swing against it in the two-party preferred vote. ==Later life==