The Dismissal

**The Dismissal** was a political event in Australia that shook the country to it's foundations as the only time a federal government has been dismissed by the Governor General.

## Background

On December 2, 1972, the Australian Labor Party - led by Gough Whitlam - won the federal election and took control of the lower house of the Australian Parliament for the first time since 1949. As the new Prime Minister, Whitlam proceeded to make wholesale changes to the Australian economy to open it up. In order to back those changes, a budget was handed down in August 1973 and supported by the lower house (the House of Representatives). However, the upper house (the Senate) did not approve it and ended up blocking supply. This caused Whitlam to call what is called a double dissolution election for May 18, 1974, throwing open all the seats in Parliament. The Labor Party was hoping to win a majority of seats in the Senate but they fell two seats short of that. When the budget was rejected again in the Senate, approval was given for a joint sitting of both Houses where the budget was finally approved. But it left the political state of the Parliament in balance.

## The Loans Issues begin

The changes made by Whitlam combined with the international oil crisis and a hike in inflation put the government into debt. In late 1974 the government started seeking help with loans from overseas. The most promising offer came from a little known broker called Tirath Khemlani, who claimed to be able to provide loans from the Middle East. Deputy Prime Minister Jim Cairns had just become Treasurer and with Whitlam co-signed approval of the loan for the Minister of Minerals and Energy, Rex Connor, to pursue as the contact. But a few days later, Cairns was informed by his department that Khemlani was not of good character. Over the Christmas New Year period as Acting Prime Minister with Whitlam away, Cairns reversed the authorisation - only for Whitlam to re-instate it upon his return. However when Cairns brought the details of Khemlani's reputation to Whitlam's attention the authorisation was again revoked - this time for good.

But Cairns then engaged in some loan seeking without Whitlam's knowledge. This was done with a more reputable source in businessman George Harris. In March 1975, Cairns signed a deal in which he would get a percentage based commission.

On May 20, 1975, Whitlam secured a deal with an investment bank in the United States - on the proviso that all other loan efforts were halted. This was passed on to both Cairns and Connor and should have put an end to anything.

## Political issues

In February 1975, Senator Lionel Murphy was appointed to the High Court of Australia and had to vacate his seat. Convention in the Senate stated that casual vacancies were to be filled by a member of the same party and appointed by the government of the state the Senator represented. However New South Wales Premier Tom Lewis, a Liberal Party member, decided that the rule didn't apply to any vacancy that wasn't caused by a death in office or by ill health. With that in mind he appointed an independent instead in Cleaver Bunton. This reduced Labor's numbers in the Senate to 28 - now three short of the majority. The Liberal Party had already gained a member when independent Michael Townley joined the Party in the same month, bringing their numbers to 30.

In March 1975, the leader of the Opposition Billy Sneddon was replaced by Malcolm Fraser in a party room vote.

Former Deputy Prime Minister Lance Barnard resigned from the Parliament to take up a position as Ambassador to Sweden, and a by election was held in the seat of Bass in Tasmania on June 28, 1975. With the economy in turmoil, the voters in Bass resoundingly elected opposition candidate Kevin Newman in a clear message to Whitlam that the people were not happy.

The final straw was just after the by election when Labor Senator Bertie Milliner passed away. This brought Queensland into play and their Parliament refused to endorse Labor's preferred replacement Mal Colston. Queensland Premier Joh Bjelke-Petersen substituted little known union official Albert Field in his place and this was approved on September 3, 1975. But for contesting the seat against Colston, Field was expelled from the Labor Party and became an independent. He didn't occupy his seat taking leave - and the Liberal Party refused to provide a pair for this leave as was the usual procedure, giving the opposition control of the Senate.

In a related development, on October 10, 1975, the High Court ruled that new legislation that gave Australia's two territories - the Australian Capital Territory and the Northern Territory - two Senators each was confirmed. This would allow the government to call a half senate election to fill those vacancies, and this had to be done by June 1976. While those elsewhere could not take their seats until July 1976, the new Senators from the territories could take their seats immediately.

## The Loans Affair peaks

The Opposition were already aware of issues with loans consequent to Whitlam's May 20 statement, especially when Cairns denied a key issue in early June. This situation compounded the voter backlash at the Bass by election. It would be a week later that Whitlam found out what Cairns had actually been doing - and sacked him as Treasurer. He felt that was the end of it this time and on July 9, 1975, he challenged the opposition to bring forward any more material with a one day recall of Parliament. The Opposition didn't do that, instead asking a litany of questions.

In August it was time for another Budget to be handed down. The new Treasurer, Bill Hayden, presented what many regarded was an excellent budget to try and claw back control of the economy in a sensible way. One person however was not happy - Rex Conner. Without the knowledge of anyone outside his office he was continuing to rely on Khemlani, especially as he wanted money for the industry his portfolio represented and didn't get it from the budget.

When the High Court handed down it's decision, the budget was in position to be debated in the Senate. At the same time the Melbourne Herald newspaper had published an interview with Khemlani, exposing the ongoing communications between him and Conner. Conner - from his hospital bed having suffered a heart attack - pronounced that he would be suing the Herald for defamation. But when Khemlani's proof of communications was presented in the Herald on October 13, 1975, Whitlam quickly sacked him.

However the damage had been done.

## The lead up and the dismissal

With this issue front and centre of public news, the Senate started to consider the August budget on October 16, 1975. The Opposition decided to defer it instead of rejecting it, trying to put Whitlam in a position where he could not guarantee supply and in the process allow for the Governor General to invoke section 64 of the Australian Constitution and appoint someone who could.

Whitlam though had confidence that the Governor General, Sir John Kerr, would not invoke the Constitution that way. Nevertheless he sought to pressure the Senate to cease their deferrals and approve the budget. The pressure was intense because all it would take would be for one Liberal Senator to cross the floor and the budget would be passed. The fact that the budget wasn't being rejected kept the issue in the Senate and out of the hands of the House of Representatives.

The political to and fro surrounded legal opinion of both sides. Bob Ellicott, a former Solicitor General, had published an opinion confirming the Governor General's power under section 64 of the Constitution. Whitlam rejected this, causing Kerr to ask his permission to consult with the High Court Chief Justice Sir Garfield Barwick. Whitlam refused, and Kerr in response asked for a response to Ellicott's opinion instead. It took 16 days for that response to be issued, something that would be seen later as a major mistake - given that consequent events revealed that by this time Kerr had the document dismissing Whitlam in his hands. He was however yet to sign it.

On the same day as asking for the Ellicott opinion, Kerr met with Malcolm Fraser - a meeting that Whitlam didn't object to - and Fraser revealed his reasons for his party's actions in the Senate. As time wore on Kerr still refused to sign the paper of dismissal, hoping that a compromise would be reached before money ran out. The Treasurer, Bill Hayden had advised that this would happen on November 27, 1975.

The peak hit on the morning of November 11, 1975. Whitlam and Fraser met to make a final attempt at compromise. Fraser insisted that Whitlam call an election for the House of Representatives if he wanted the budget passed. Whitlam refused, and told Fraser that if he didn't let the budget through he would call for a half senate election to bring in the new Territory Senators. A follow up phone call with Kerr confirmed that the half senate election would be called for and Whitlam made an appointment with the Governor General to formalise this.

It would be after the conclusion of that phone call that Kerr would finally sign the document to dismiss the Whitlam Government.

He then made an appointment with Fraser for after Whitlam's appointment. After a scare when Fraser ran early and Whitlam ran late, Kerr informed Whitlam of his dismissal under section 64 of the Constitution. After Whitlam left, Fraser was appointed caretaker Prime Minister in order to pass the budget before a double dissolution election was called. Fraser contacted the Senate leader who approved the budget on a motion from the Leader of the Government in the Senate (who at that point was not aware of the dismissal), thereby keeping his word.

## The reaction

The reaction was huge. The union movement in particular was outraged. Even in the House of Representatives when the news came through, the uproar all but drowned out Fraser's formal advice of what had occurred. Never had the House lost so much control. It is recorded in Hansard that after Fraser's statement the opposition moved a motion of adjournment. The Labor Party voted that down and then moved the Standing Orders be suspended to allow Whitlam to move a motion without notice. The Speaker ignored an interjection about the prevailing climate at the numbers told again for Labor. Whitlam then moved a motion of confidence in his government and called on the Governor General to reverse his decision in effect. The numbers told again - but it was too late. Fraser had already asked the Governor General to dissolve both houses for an election to be held on December 13, 1975.

Labor party staffers and Australian National University students and staff had assembled outside Parliament House, where Whitlam met them to resounding cheers. After David Smith, Kerr's official secretary, read out the formal declaration (and was nearly drowned out by jeering protestors) - concluding with the obligatory "God Save the Queen", Whitlam stepped up and made a statement that would be etched in Australian political history;

> *Well may we say "God save the Queen", because nothing will save the Governor-General! The Proclamation which you have just heard read by the Governor-General's Official Secretary was countersigned Malcolm Fraser, who will undoubtedly go down in Australian history from Remembrance Day 1975 as Kerr's cur. They won't silence the outskirts of Parliament House, even if the inside has been silenced for a few weeks ... Maintain your rage and enthusiasm for the campaign for the election now to be held and until polling day.*
>
>

Protests were held across Australia, including outside Government House in Melbourne. The consequent election campaign was focussed on the economy by Fraser, while Whitlam concentrated on the dismissal. It would not work and the Labor government was thrown out in a landslide result on December 13. The debt the government was in remained on the books until 2006.

Whitlam never forgave Kerr for his actions. He and those remaining in Parliament after the election boycotted the opening of the new Parliament in early 1976. Whitlam never accepted any invitations to any event run by Kerr - who resigned as Governor General in mid 1977, effective at the end of the year. His ongoing negative reputation was shown when he appeared drunk at the Melbourne Cup that year a month before his formal departure and was roundly jeered by the crowd. It would consequently lead to the political cartoonist from Melbourne's Age newspaper, Ron Tandberg, depict Kerr as a drunk from then on.

Whitlam attempted to win the 1977 election but failed again. He would resign as Labor Party leader not that long afterwards. At that election, constitutional changes were also voted on and one in particular that was approved by the people was that any casual vacancy in the Senate now had to be filled by a member of the same political party as the Senator who had departed. Whilst Whitlam continued to avoid Kerr, he would in later years reconcile with Fraser admitting that Fraser had "not set out to deceive him". The two campaigned together for an Australian Republic in 1999.

## *Opinion*

* This was an important day in my own personal history. It was the first time in my life that I attended a protest rally, and it was the same for my parents - outside Government House in Melbourne. I barely remember it, and we just happened to be in the neighbourhood anyway so it was something of a fluke. We left because things were getting nasty. It was this event that sparked my initial interest in politics. November 11 is a day that holds other meanings - Armistice Day at the end of World War 1, and the day Ned Kelly was hanged. The second sentence of Gough's famous reflection forms part of the introduction of my podcast. **TLPG** 09:51, October 28, 2020 (UTC)