Labor demanded that their new leader
John Verran be made Premier. Peake, who had meantime forged a loose alliance between his LDU and the two
independent conservative parties, the
Australasian National League (formerly National Defence League) and the
Farmers and Producers Political Union, refused and was able to form a minority government which lasted for a year. Labor came to power with the state's first
majority government following the
1910 election. Following this, the LDU merged with the two independent conservative parties to form the
Liberal Union with Peake as leader. The parties readily approved the merger, however, the LDU which salvaged the fewest of their principles from the merger were more hesitant. Peake persuaded a party conference that 'the day of the middle party is passed', and approved the merger by just one vote. The Liberal Union was affiliated with the federal
Commonwealth Liberal Party. Verran's government became unpopular as a result of its inability to deal with a rash of industrial disputes, and Peake came to power following
1912 election. == References ==