State Politics
In 1909 Lyons was elected to the Tasmanian House of Assembly. From 1914 to 1916 he was Treasurer (finance minister) and Minister for Education and Railways in John Earle's state Labor government. As Education Minister he oversaw a number of reforms, including abolition of fees for state schools, improving teachers' pay and conditions, and founding Tasmania's first state high schools.
In 1913, a participant in the Labor discussion groups, Eliza Burnell, introduced him to her 15 year-old daughter, Enid Burnell, a trainee teacher and they were married two years later. She was a strong-minded woman who exercised great influence over Lyons, while raising their eleven children.
When the ALP split over conscription during the First World War in 1916, Earle, a pro-conscriptionist, followed Prime Minister Billy Hughes out of the Labor party. Like most Australians of Irish Catholic background, Lyons was an anti-conscriptionist and stayed in the Labor Party, becoming its new leader in Tasmania.
He led the Labor opposition in the Tasmanian Parliament until 1923 when he became Premier, leading a minority ALP government. He held office until 1928, also serving as Treasurer during the whole period of his premiership. Lyons' government was cautious and pragmatic, establishing good relations with business and the conservative government in Canberra, but attracting some criticism from unionists within his own party. Labor narrowly lost the 1928 state election to the Nationalist Party.
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