State Politics
In 1962 Holding was elected to the Victorian Legislative Assembly for the seat of Richmond, which had previously been held for many years by mostly conservative Catholic Labor Party members, although his immediate predecessor, Frank Crean, was a Presbyterian. Clive Stoneham, who had been ALP leader from 1958 onwards, was no match for the dominant Liberal Premier, Sir Henry Bolte. After Labor suffered its fifth consecutive defeat at the 1967 election, Holding took over from Stoneham as party leader.
Although Holding was in some ways a social radical, he was opposed to the left-wing faction which had taken control of the Victorian Labor Party following the 1955 split, which had seen many right-wing members expelled. In particular, he supported government aid for non-government, including Catholic, schools, which the left bitterly opposed. He was a supporter of the reforming federal Labor leader, Gough Whitlam, who was determined to reform the Victorian branch as a precondition of winning a federal election. He was also a close ally of the ACTU president, Bob Hawke.
During the 1970 state election campaign, which some commentators suggested Labor could win as a result of voter fatigue with the Liberals after their 15 years in power, Holding campaigned on the new federal policy of supporting state aid to non-government schools. The week before the election, the left-wing state president, George Crawford and state secretary, Bill Hartley, issued a statement saying that a Victorian Labor government would not support state aid. As a result Whitlam refused to campaign for Labor in Victoria, and Holding was forced to repudiate his own policy. Faced with evidence of Labor disunity, the voters re-elected the Bolte government.
This episode led directly to federal intervention in the Victorian branch of the Labor Party. In 1971 the left-wing leadership was overturned by the National Executive and allies of Whitlam, Hawke and Holding took control. The left then formed an organised faction, the Socialist Left, to agitate for socialist policies, supported by some unions. This continuing conflict in the party made it difficult for Holding to oppose the Liberal government effectively. The surge in support for federal Labor which saw Whitlam elected Prime Minister in 1972 was not reflected in Victorian state politics. Bolte retired in 1972, and his successor, Dick Hamer, comfortably won the 1973 and 1976 state elections.
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