Premier of Tasmania
In February 2004 Bacon was diagnosed with lung cancer and stood down as Premier to begin treatment. Lennon was Acting Premier until 21 March, when Bacon resigned and Lennon was sworn in as Tasmania’s 42nd Premier. He was also Treasurer until 2006 when he was succeeded by Michael Aird.
Lennon and Bacon were close friends as well as colleagues and Lennon was emotional as he assumed the premiership with Bacon watching on. "It's hard to describe how you feel when someone who has been that close to you also happens to be your boss", Lennon told an interviewer. "It was a very tough time. A very tough time indeed."
Lennon is known as an active proponent of Tasmania's forestry industry, which is a partnership between its investors, managers, and workers, which has made him very unpopular with the Greens, numerous conservation groups and others on the left. He represents a long tradition of conservative, pro-business Labor leadership in Tasmania. Both Lennon's Labor government and the State Opposition have been criticised for their close ties with the logging company Gunns Limited, most recently over the drafting of new legislation.
In January 2006, Lennon faced criticism in the media over allegations of impropriety when it was revealed that he had received an upgrade from a A$200 per night room in the Crown Casino to a six-star suite worth up to A$4000 per night, complete with a private butler. The Crown Casino is owned by the Packer family's Publishing and Broadcasting Limited, which also owns a 50% stake in Betfair, the company to which Lennon's government days later awarded a A$700 million internet gaming licence.
In the 2006 state election Lennon successfully led the Labor party to a majority government, contrary to many pre-election predictions.
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