Premier
On October 1, 1990, Rae was sworn in as the first NDP premier of Ontario. He also took the Intergovernmental Affairs portfolio, giving himself a direct voice in future constitutional negotiations.
He was very popular for his first six months as Premier, with a poll from March 1991 showing the NDP at 52% support. The federal NDP also received 56% support in Ontario in a January 1991 poll.
The government was unable to sustain its popularity, however, and by late 1992 had fallen to third place in public opinion polls. The party's popularity continued to ebb throughout 1993, followed by only a modest recovery in the next two years. This, among other factors, partially contributed to a significant decline in support for the federal NDP.
There are many reasons for the Rae government's loss of popularity between 1991 and 1993. The NDP had never governed Ontario before, and Ontario was experiencing its worst recession since the Great Depression. The government backtracked on several campaign promises, most notably the introduction of public auto insurance, which caused disagreements among the party and supporters, especially left-wingers such as cabinet ministers Howard Hampton and Shelley Martel. A number of scandals in cabinet and caucus also cut into the government's popularity.
In the 1993 federal election, the NDP fell to a historic low of 6% support in Ontario. All 10 New Democrat MPs from Ontario lost their seats to Liberal challengers as the Liberals won all but one seat in the province. Besides many NDP supporters nationwide voting Liberal to ensure that the Conservatives would be defeated (to avoid the vote-splitting of the 1988 election), the Rae government's unpopularity was a major factor in the federal NDP's losses. On the day after the election, defeated MP Steven Langdon called on Rae to resign. Langdon had openly campaigned against Rae's austerity measures. Although he lost by 13,000 votes to the Liberal candidate, he received a higher percentage of votes than any other NDP candidate in the province.
Notwithstanding its setbacks, the Rae government achieved some positive accomplishments during its time in office. It saved many jobs in northern Ontario through its bailout of Algoma Steel, and negotiated a similar contract for workers in Kapuskasing. Other popular initiatives included the TTC Eglinton West subway line in Toronto (even though the official transit plan only recommended a busway for current needs), support for public housing, and the Jobs Ontario job creation program. Rae's decision to approve casino gambling for the province was also opposed by many in the party but it provided a steady source of revenue.
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