Final Term
The Progressive Conservatives were returned with a majority government in the 1981 provincial election, mostly at the expense of the NDP. Soon after the election, Davis announced that John Tory (who would become leader of the PCs 23 years later) had been hired to succeed Hugh Segal as his principal secretary. He also announced that Ontario would purchase a 25% share in the energy corporation Suncor, despite opposition from within his own caucus.
Davis considered moving to federal politics by running to lead the federal Progressive Conservatives in 1983 when Joe Clark only received lukewarm support during a leadership review. Davis decided not to do so when he realized that he would not receive endorsements from western Canada because of his support for the Constitution patriation and the National Energy Program. His candidacy had been strongly opposed by Peter Lougheed, the Premier of Alberta.
He retired a few months before the 1985 election, with him and his government still well ahead in polls against David Peterson's Liberals and Bob Rae's NDP. One of his last major acts as premier was to reverse his 1971 decision against the full funding of Catholic schools, and announce that such funding would be provided to the end of Grade Thirteen. Although the policy was supported by all parties in the legislature, it was unpopular with some in the Conservatives' traditional rural Protestant base, and many would stay home in the upcoming election because of this issue.
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