Liberal Leader
Peterson was not initially regarded as a strong challenger to the Progressive Conservative government of Bill Davis. The Liberals lost two seats to the NDP in late 1984 by-elections, and another caucus member defected to the Progressive Conservatives that same year, claiming that Peterson was an ineffective leader. Polling in late 1984 showed Peterson's Liberals in third place, behind the Progressive Conservatives and Bob Rae's New Democratic Party.
Peterson's fortunes improved when Davis retired as leader of the Progressive Conservative Party in early 1985. His successor, Frank Miller, took the party further to the right, and was unable to convince the electorate of his leadership abilities.
Though Miller's Tories began the election in 1985 with a significant lead, Peterson's Liberals gradually increased their support throughout the campaign. To the surprise of many, Peterson won a narrow plurality of the popular vote. However, at the time rural areas were still slightly overrepresented in the Legislative Assembly. As a result, the Liberals won 48 seats, while the Progressive Conservatives 52 which was enough for a minority government.
The Ontario New Democratic Party, with 25 seats, held the balance of power. Following the election, NDP leader Bob Rae entered negotiations with both the Liberals and Progressive Conservatives, seeking a formal accord in which the NDP would pledge not to defeat the government in return for the passage of certain progressive legislation. Miller's Tories attempted to win the NDP's support, but were unable to agree to Rae's terms. Negotiations with the Liberals were more fruitiful, and the two parties signed an accord allowing the Liberals to govern for a two-year period. This accord was not a formal coalition, as the NDP did not receive any cabinet seats, something that Peterson was not willing to consider during discussions with Rae.
Read more about this topic: David Peterson
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