Minister of The Crown
At the March 1938 election, Mair was returned with a slightly reduced margin of 57.76%. On this occasion, however, Mair was appointed to Premier Steven's new cabinet as an Assistant Minister on 13 April 1938. He served in this capacity for ten weeks until 1 June 1938, when he was promoted as the Minister for Labour and Industry, which had been vacated by the death of his predecessor, John Dunningham. Despite serving only a brief time in this portfolio, Mair was largely successful, gaining a reputation as understanding and sympathetic to worker's views, leading to the resolution of several industrial disputes.
He served until 13 October, when Premier Stevens promoted him as Colonial Treasurer. Upon taking office, Mair immediately proposed drastic cuts in expenditure to bring the budget back into balance, and to find new sources of taxation income. As part of this, he issued a circular to all government Ministers to declare any expenditure over £3000 to Treasury for approval. All complied except Deputy Leader and Minister for Public Works and Local Government, Eric Spooner, who sought to undermine confidence in Steven's leadership. In July 1939, Stevens and Mair attempted to prevent Spooner's disruptive tactics by creating a committee of four, consisting of Mair, Stevens, Spooner and Country Party Leader, Michael Bruxner, to approve all expenditure. Furious at this gesture, Spooner resigned on 21 July 1939 as Minister and Deputy Leader, citing a 'disagreement in government policy on relief works' as the reason.
On 1 August 1939, Spooner carried a motion of no confidence in Stevens in the house, which unexpectedly passed by two votes, owing to the absence of several ministers. On 3 August Stevens tendered his resignation to the Governor, Lord Wakehurst, but was granted several days to remain until his successor was chosen. Upon the resignation, Spooner was touted as Stevens' possible successor until Deputy Premier Bruxner refused to form a coalition government with Spooner, who was opposed to Country Party influence, while Stevens attempted to gather support for Mair. At a party meeting on 5 August, Spooner chose not to nominate and Mair defeated Athol Richardson 18 votes to 6, becoming Leader of the United Australia Party and was sworn in as Premier by Lord Wakehurst on the same day.
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