Premier
Shortly after taking office as premier, Davis announced that his government would not permit continuing construction of the rest of the Spadina Expressway into downtown Toronto (an initiative that had been unpopular with many of the area's residents). The "Davis ditch", the section of Allen Road south of Lawrence Avenue was nicknamed in his honour. He also rejected a proposal to grant full funding to Ontario's Catholic high schools, which some regarded as an appeal to the Progressive Conservative Party's rural Protestant base. Davis's team ran a professional campaign in the 1971 provincial election, and was rewarded with an increased majority government.
Davis's first full term as premier was by most accounts his least successful, with public confidence in his government weakened by a series of scandals. There were allegations that the Fidinam company had received special consideration for a Toronto development program in return for donations to the Progressive Conservative Party. In 1973, it was revealed that Davis' friend Gerhard Moog had received a valuable untendered contract for the construction of Ontario Hydro's new head office and related projects. Attorney General Dalton Bales, Solicitor General John Yaremko and Treasurer McKeough were all accused of conflicts-of-interest relating to government approval for developments on properties they owned. The government was cleared of impropriety in all cases, but its popular support nonetheless declined. The Conservatives lost four key by-elections in 1973 and 1974.
On the policy front, the Davis administration introduced regional governments for Durham, Hamilton-Wentworth, Haldimand-Norfolk, and Waterloo but shelved further plans in response to popular protests. The government was also forced to cancel a planned 7% energy tax in 1973 following protests from the Progressive Conservative backbench. In the buildup to the 1975 provincial election, Davis imposed a ninety-day freeze on energy prices, temporarily reduced the provincial sales tax from 7% to 5%, and announced rent controls for the province.
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