Whitlam Government - Constitutional Crisis

Constitutional Crisis

In October 1975, the Opposition, led by Fraser, determined to block supply by deferring consideration of appropriation bills. With Field on leave (his Senate appointment having been challenged), the Coalition had an effective majority of 30–29 in the Senate. The Coalition believed that if Whitlam could not deliver supply, and would not advise new elections, Kerr would have to dismiss him. Supply would run out on 30 November.

The stakes were raised in the conflict on 10 October, when the High Court declared valid the Act granting the territories two senators each. In a half-Senate election, most successful candidates would not take their places until 1 July 1976, but the territorial senators, and those filling Field's and Bunton's seats, would assume their seats at once. This gave Labor an outside chance of controlling the Senate, at least up until 1 July 1976. On 14 October, Labor minister Rex Connor, mastermind of the loans scheme, was forced to resign when Khemlani released documents showing that Connor had made misleading statements. The continuing scandal confirmed the Coalition in their stance that they would not concede supply. Whitlam on the other hand, convinced that he would win the battle, was glad of the distraction from the Loans Affair, and believed that he would "smash" not only the Senate, but Fraser's leadership as well.

Whitlam told the House of Representatives on 21 October,

Whitlam and his ministers repeatedly warned that the Opposition was damaging not only the Constitution, but the economy as well. The Coalition senators tried to remain united, as several became increasingly concerned about the tactic of blocking supply. As the crisis dragged into November, Whitlam attempted to make arrangements for public servants and suppliers to be able to cash cheques at banks. These transactions would be temporary loans which the government would repay once supply was restored.

Governor-General Kerr was following the crisis closely. At a luncheon with Whitlam and several of his ministers on 30 October, Kerr suggested a compromise: if Fraser conceded supply, Whitlam would agree not to call the half-Senate election until May or June 1976, or alternatively would agree not to call the Senate into session until after 1 July. Whitlam rejected the idea, seeking to end the Senate's right to deny supply. On 3 November, after a meeting with Kerr, Fraser proposed that if the government agreed to hold a House of Representatives election at the same time as the half-Senate election, the Coalition would concede supply. Whitlam rejected this offer, stating that he had no intention of advising a House election for at least a year.

With the crisis unresolved, on 6 November, Kerr decided to dismiss Whitlam as Prime Minister. Fearing that Whitlam would go to the Queen and have him removed, Kerr did not give Whitlam any hint of what was coming. He conferred (against Whitlam's advice) with High Court Chief Justice Sir Garfield Barwick, who agreed that he had the power to dismiss Whitlam.

A meeting among the party leaders, including Whitlam and Fraser, to resolve the crisis on the morning of 11 November came to nothing. Kerr and Whitlam met at the Governor-General's office that afternoon at 1.00 pm. Unknown to Whitlam, Fraser was waiting in an ante-room; Whitlam later stated that he would not have set foot in the building if he had known Fraser was there. Whitlam, as he had told Kerr by phone earlier that day, came prepared to advise a half-Senate election, to be held on 13 December. Kerr instead told Whitlam that he had terminated his commission as Prime Minister, and handed him a letter to that effect. After the conversation, Whitlam returned to the Prime Minister's residence, The Lodge, had lunch and conferred with his advisers. Immediately after his meeting with Whitlam, Kerr commissioned Fraser as caretaker Prime Minister, on the assurance he could obtain supply and would then advise Kerr to dissolve both houses for election.

In the confusion, Whitlam and his advisers did not immediately tell any Senate members of the dismissal, with the result that when the Senate convened at 2.00 pm, the appropriation bills were rapidly passed, with the ALP senators assuming the Opposition had given in. The bills were soon sent to Kerr to receive Royal Assent. At 2.34 pm, ten minutes after supply had been secured, Fraser rose in the House and announced he was Prime Minister. He promptly suffered a series of defeats in the House, which instructed the Speaker, Gordon Scholes, to advise Kerr to reinstate Whitlam.

By the time Kerr received Scholes, Parliament had been dissolved by proclamation. Kerr's Official Secretary, David Smith came to Parliament House to proclaim the dissolution from the front steps. A large, angry crowd had gathered, and Smith was nearly drowned out by their noise. He concluded with the traditional "God save the Queen". Former Prime Minister Whitlam, who had been standing behind Smith, then addressed the crowd:

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.