Early Political Career
Peterson was first elected as the Liberal Member of Provincial Parliament for London Centre in the 1975 provincial election. Less than one year later, he campaigned for the leadership of the party following Robert Nixon's resignation. Despite his inexperience, Peterson nevertheless came within 45 votes of defeating Stuart Smith on the third and final ballot of a delegated convention held on January 25, 1976. Smith represented the left-wing of the party, while Peterson was seen as representing its right-wing. Some blamed Peterson's loss on the banal delivery of his convention speech.
Peterson was re-elected in the provincial elections of 1977 and 1981, and ran for the Liberal leadership a second time after Smith's resignation in 1982; Smith had managed to maintain the party's standing in the legislature but was unable to make gains in both elections. Again considered to be on the right of the party, he defeated the more left-leaning Sheila Copps on the second ballot of a convention vote, held on February 21, 1982. One of his most prominent organizers during this period was Keith Davey.
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