In Retirement
Davis was succeeded by Frank Miller, who was elected leader at a January 1985 leadership convention over Larry Grossman and was widely considered the successor to Davis and his Big Blue Machine. Although Miller was more conservative, the Progressive Conservatives still held a significant lead over the opposition when the election was called. However, after a poor campaign and controversy over Catholic school funding, they were reduced to minority government and lost the popular vote to the Liberal Party in the 1985 provincial election and were soon defeated by a motion of non-confidence by a Liberal-NDP accord, ending the party's 42 year period of rule over the province.
Davis was made a Companion of the Order of Canada in 1985, and has served on numerous corporate boards since his retirement from politics.
Davis's reputation within the Ontario Progressive Conservatives was compromised during the 1990s by the party's shift to the right under Mike Harris. Many Conservatives parliamentarians were openly dismissive of Davis-era spending policies, and frequently highlighted the differences between Davis and Harris on policy issues. Davis remained a supporter of the party, but seldom appeared at official events. In a National Post editorial, on the tenth anniversary of Harris' 1995 electoral victory, Harris' chief of staff described the difference in their policies, saying that Davis retained power with a careful balancing act, while Harris used a bold platform to unexpectedly catapult the party from third place to first.
More recently, Davis has returned to an honoured position within the party. He was a keynote speaker at the 2004 Progressive Conservative leadership convention, and was singled out for praise in speeches by outgoing party leader Ernie Eves and new leader John Tory. Davis was also present for Tory's first session in the Ontario legislature, following the latter's victory in a 2005 by-election.
In 2003, Davis played a role in the successful negotiations to merge the federal Progressive Conservatives with the Canadian Alliance, and create the new Conservative Party of Canada. In the 2006 federal campaign, he campaigned for Conservative Leader Stephen Harper and endorsed former provincial minister Jim Flaherty. Harper spoke favourably of Davis during the campaign, and said that he learned much from Davis's style of governing. The Conservatives were able to defeat the Liberals to form the government.
Throughout his political career, Davis often remarked upon the lasting influence of his hometown of Brampton, Ontario. He is known, primarily by Bramptonians, as "Brampton Billy".
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