Governor-General
In 1947 Chifley gained formal agreement from King George VI for McKell's appointment as Governor-General. This occurred only after very considerable opposition from the King and a detailed correspondence between them, also involving the incumbent governor-general (George's brother the Duke of Gloucester) and the British Foreign Office, the details of which did not come to light till over 50 years later. The objection was not personal (George VI had never met McKell) but centered on his being closely associated with a particular political party, and with a particular state. There was no precedent for a serving politician, let alone a party leader and head of government, to be named Australian governor-general, although there was a South African precedent. In the end, George VI had no option but accept Chifley's assurances of McKell's personal integrity and that the Crown would not be exposed to any political controversy.
The official announcement was made on 31 January 1947, and McKell resigned from parliament and from the ministry on 6 February, but not before participating in the caucus vote to elect his own successor (5 February); he had favoured Bob Heffron, but James McGirr had the numbers.
Chifley was determined that the Duke of Gloucester's successor should be an Australian, and he seems to have deliberately chosen a Labor man with a working-class background to make a political point. There was an outcry from the Liberal opposition and the conservative press: Robert Menzies called the appointment "shocking and humiliating". In a debate on a censure motion on 20 February, Menzies said the fact that McKell was actively engaged in politics when the appointment was announced (even though he had since vacated the political stage) was "a grave disqualification" which "strikes at the very foundation of the office of the Governor-Generalship, because that office in Australia should be as far removed from party politics as is the Crown itself in Great Britain". Chifley, in response, accepted full responsibility for the appointment, said that he offered no apologies, and "I am completely confident that as time goes on I shall have no reason to regret my action". McKell kept a dignified silence on the matter of his appointment, rather than conducting a public defence of it. Nevertheless, Chifley publicly argued that any suitable Australian should be capable of being chosen as governor-general.
Once McKell took office on 11 March, however, the continuing respect for the Crown and its representative meant that there was no further criticism. McKell carried out the usual round of his formal duties with dignity, and succeeded in winning over all but the most inflexible anglophiles. When Menzies succeeded Chifley as Prime Minister in December 1949, his relations with McKell were initially cordial, but they later became firm friends and Menzies even extended his term by 14 months from its initial five years.
The most controversial moment in McKell's career came in March 1951, when Menzies asked him for a double dissolution election. Labor had retained control of the Senate after the 1949 election, and the Senate had referred the government's banking bill to a committee. Menzies argued that this constituted "failure to pass" in terms of Section 57 of the Australian Constitution.
Many in the Labor Party, though not Chifley, thought that McKell should and would refuse Menzies a double dissolution, but the Governor-General agreed (with little hesitation) to provide one. McKell took the view that it was for the voters, not the Governor-General, to determine whether the Senate or Menzies was right: he saw it as his duty to act on the advice of his Prime Minister.
On 13 November 1951, McKell accepted a knighthood (Knight Grand Cross of the Order of St Michael and St George) from King George VI, who personally invested him at Buckingham Palace while McKell was on an official visit to the United Kingdom. This caused considerable controversy in the Labor Party, as it was Labor policy to have nothing to do with knighthoods (a policy confirmed by the case of Queensland union leader Jack Egerton a generation afterwards); but there was nothing Labor could do about it, since McKell had severed all connections with the party on assuming office. Also it was unprecedented, and was still considered somewhat inappropriate, for a governor-general not to be at least a knight (if not a peer). McKell was the only Australian governor-general to be knighted during his term.
His Official Secretary for the first few weeks was Sir Leighton Bracegirdle, whose retirement was overdue after serving McKell's three predecessors over 16 years. He was succeeded by Murray Tyrrell.
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