25th Legislative Assembly McDonald was elected in the rural riding of
Mayo as part of the
New Democrat caucus in the
1982 election. Taking more than half the vote, he defeated incumbent
Progressive Conservative MLA Swede Hanson. McDonald had been an underground miner, labour leader, and vice-president of the
Yukon Federation of Labour before his entry into territorial politics. The New Democrats, under the leadership of
Tony Penikett, formed the Official Opposition in the 25th Legislative Assembly. McDonald acted as critic for Rural Development, Labour, Occupational Health and Safety, and Workers' Compensation.
26th Legislative Assembly In the
1985 election, Tony Penikett led the New Democrats to a narrow minority government. McDonald was sworn in as a member of the
Yukon Executive Council as Minister of Education, Minister of Community and Transportation Services, and Minister of the Yukon Housing Corporation. During that time, McDonald oversaw a significant agenda for his portfolios, ushering in the creation of the
Yukon College and the establishment of the Yukon Arts Centre and the Whitehorse Public Library. Other initiatives of his included: the Native Teacher Education Program; the opening and paving of the South Klondike Highway, which provided tidewater access for Yukon mines; the transfer of private-sector municipal airports and the Alaska Highway to the Yukon Government; and the establishment of the first home ownership programs and homesteader policies in the territory.
27th Legislative Assembly McDonald was re-elected in Mayo in the
1989 election, which saw the New Democrats attain majority status in the legislative assembly. He was once again sworn into Cabinet, this time as Government House Leader, Minister of Education, Minister of Government Services, Minister of Economic Development, Mines and Small Business, Minister of the Public Service Commission, and Minister of the Workers’ Compensation Health and Safety Board. During the 27th Legislative Assembly, McDonald oversaw the creation of the Yukon's first
Education Act, as well as a new
Workers’ Compensation Health and Safety Act. He oversaw the signing of an oil and gas accord with the
Government of the Northwest Territories and an economic development agreement with the
Government of Canada. Within the public school system, he also established policies on busing, computers, special needs education, and experiential learning. Yukon's only French First Language school, École Emilie Tremblay, was opened under his mandate.
28th Legislative Assembly In the
1992 election, McDonald ran for election in the newly created
Whitehorse riding of
McIntyre-Takhini. His riding of Mayo had been amalgamated with the neighbouring riding of
Tatchun. He was elected to McIntyre-Takhini that election, but the Penikett government was narrowly defeated by a minority
Yukon Party government led by
John Ostashek and propped up by three independent MLAs. Penikett subsequently resigned as leader of the
Yukon New Democratic Party and McDonald succeeded him as leader. He assumed the critic portfolios of Finance and Economic Development and served as Leader of the Official Opposition.
29th Legislative Assembly McDonald defeated the government of John Ostashek in the election of
September 30, 1996, his government elected with a large level of support in rural Yukon. McDonald's party captured 11/17 seats, then the largest majority in Yukon history, and McDonald was once again re-elected in
McIntyre-Takhini. He became
Premier of the Yukon, then referred to as ‘Government Leader’, and assumed the responsibilities of Minister of Finance and Minister of the Executive Council. During his premiership, McDonald's government oversaw significant restructuring of the Yukon's governance. The
Umbrella Final Agreement, jointly established through the mandates of Penikett and Ostashek, began to usher in final land claims negotiations for many Yukon First Nations. With the federal government, a devolution accord on the Transfer of Lands and Resource Management to the Yukon was negotiated (ultimately implemented in 2003). McDonald also emphasized intergovernmental and circumpolar relations, established new territorial parks and community schools, and created new government strategies for restorative justice, protected areas, trade and investment, forestry, and energy. While his government left a $60 million budget surplus and earned a good reputation for promoting social programs and protecting the environment, the Yukon had suffered from a decline in the territory's economy due to a fall in world metal prices and the closure of several mines. This became a major campaign issue in the
2000 general election, along with a resulting mass exodus of nearly one-in-ten people from the Yukon. Ultimately, these economic hardships fueled the rise of the
Pat Duncan Liberals and in the
2000 general election, McDonald's NDP government was defeated and McDonald himself lost his own seat of
McIntyre-Takhini. NDP support had largely held in rural Yukon, but it was the Liberals' sweep of the territory's Whitehorse ridings that ensured the NDP's defeat. McDonald resigned as party leader on April 27, 2000. ==Post political activities==