How did Menzies lead the newly formed Liberal Party of Australia?The eleven years that passed between the 1943 and the 1954 elections were arguably some of the most pivotal in Australian history. This was a period of intense political, policy and strategic transition, which saw a popular Labor Government and its state-led vision for post-war reconstruction toppled by Robert Menzies and his newly formed political machine, the Liberal Party of Australia. Meanwhile, a backdrop of rising Cold War tensions came to dominate domestic and international policymaking, ushering in a divisive communist party ban, the ANZUS treaty, the Colombo Plan, and Australia’s own agency of international espionage, ASIS.But what was the difference in practical terms between Menzies and his predecessors? What role was the state to play under a centre-right government, and would Menzies be able to live up to the liberal ideals with which he had won over the Australian public? All these issues are explored in the second of a four-volume history of Menzies and his world, based on conferences convened by the Robert Menzies Institute at the University of Melbourne.Contributors include Christopher Beer, Andrew Blyth, Troy Bramston, Lorraine Finlay, Nicolle Flint, David Furse-Roberts, Anne Henderson, David Lee, Lucas McLennan, Lyndon Megarrity, Charles Richardson, William Stoltz and Tom Switzer.
That Menzies would achieve that title was far from clear in the 1943-1954 period covered by this book. Menzies first term as prime minister (1939-1941) ended in his resignation amid disarray on the political centre-right. Menzies returned to power in 1949, and although he retained power in the 1954 election, based on the number of seats won, the Labor opposition received more votes.
An essential element of Menzies' return to power was the formation of the Liberal Party in 1944-45, discussed in a chapter by Nicolle Flint. The Liberal Party brought a range of centre-right organisations together into a more unified and better organised political force. Flint discusses the debate about whether Menzies was the Liberal Party's 'founder', arguing that although there were many other significant individuals Menzies played a critical role.
Troy Bramston discusses how political management, including of internal government processes, contributed to Menzies' success. (One interesting aside: Menzies was not a morning person, usually not arriving at his office until 10am, but regularly working until 11pm - not a chronotype that would work in the era of morning radio and TV.)
Other chapters discuss the political debates of the era. Although both the Liberal and Labor parties accepted that government would play a larger role in the economy after World War II, they disagreed strongly about the level of government control.
Anne Henderson's chapter discusses the Chifley Labor government's attempts, in the late 1940s, to nationalise banks. This was an overreach by Chifley, triggering significant opposition that mobilised the anti-Labor forces in Australian politics and contributed to his defeat, and the coming to power of Menzies, in 1949.
In his chapter Andrew Blyth discusses the early think-tanks influencing Menzies, including the Institute of Public Affairs and (stretching the think-tank concept) the role of independent reviews of government policy.
Locally and internationally, communism was seen as a significant threat. This led to Menzies overreaching, in first legislating to ban the Communist Party and then, when that ban was overturned by the High Court, trying unsuccessfully to change the Australian Constitution. These events are described in Lorraine Finlay's chapter.
The issue of communism, however, remained important to Menzies' political longevity. On the Labor side, anti-communist Catholics led by BA Santamaria were working against communist influences in the unions. Labor leader HV Evatt blamed them for the loss of the 1954 election, triggering a series of events that led to the breakaway Democratic Labour Party. DLP preferences subsequently helped keep Menzies in power. Lucas McLennan's chapter examines the beliefs of Santamaria's 'Movement'. Despite significant differences with Liberal beliefs, the two political groups shared an opposition to the greater evil of communism.
Anti-communism was also important to foreign policy in the Menzies era. This included the ANZUS treaty, explained in David Furse-Roberts' chapter on external affairs minister Percy Spender, and the establishment of the ASIS spy agency, which is covered by Will Stoltz.
Foreign policy considerations also influenced the Colombo Plan, which brought Asian students to Australia. Lyndon Megarrity shows that education was a long-standing exception to the White Australia policy that began in the early 1900s. The students contributed to diminished support for excluding Asian migrants, but the White Australia policy was not lifted until after Menzies left office.
Although Menzies was - with the significant exception of the attempted Communist Party ban - more liberal than the Labor Party of 1943-1954, by the standards of later times he presided over an illiberal economic policy. David Lee's chapter describes policies that would be near unthinkable today, such as import licensing (and also the reasons for it). Tom Switzer notes many more exceptions to what would now be seen as the more liberal approach, including significant increases in public spending as a percentage of GDP.
Charles Richardson discusses Menzies, Evatt and constitutional government, especially the role of the governor-general. He makes the interesting observation that Australia demonstrated that parliamentary government could work effectively without a hereditary monarch or an elected head of state.
A chapter by Christopher Beer takes a local perspective, of the Menzies era on the NSW Central Coast, represented in federal parliament by Liberal MP Roger Dean from 1949 to 1964.
The Menzies Watershed is not a comprehensive political history of the 1943 to 1954 period, but all its chapters are clearly written and interesting accounts of aspects of an era that, in hindsight, was a turning point in Australian politics. Since 1946 every election has principally been a contest between the Labor and Liberal parties, which survive, albeit in severely diminished states, in 2023.
Book review of The Menzies Watershed edited by historian Zachary Gorman
The second volume in the Robert Menzies Institute’s four-part historical series, The Menzies Watershed: Liberalism, Anti-communism, Continuities 1943–1954, examines one of the most pivotal decades in modern Australian political history. The book brings together a wide range of scholars and commentators to explore the period in which Sir Robert Menzies returned from political defeat to build the political movement that would dominate Australian politics for a generation.
This “watershed” period spans the years between the 1943 and 1954 federal elections, a time of dramatic political and strategic transition. During these years, Menzies founded the Liberal Party of Australia, defeated the long-standing Labor government in 1949, and began shaping the institutions, alliances, and policy directions that would influence Australia throughout the Cold War. Key national developments of the era included debates over the Communist Party ban, the creation of the ANZUS alliance, the Colombo Plan, and the emergence of Australian intelligence institutions such as ASIS.
The volume is a collection of essays written by a distinguished group of contributors including Christopher Beer, Andrew Blyth, Troy Bramston, Lorraine Finlay, Nicolle Flint, David Furse-Roberts, Anne Henderson, David Lee, Lucas McLennan, Lyndon Megarrity, Charles Richardson, William Stoltz, and Tom Switzer. Each author examines a different dimension of the period: Menzies’ political philosophy, the creation of the Liberal Party, post-war economic policy, foreign policy, the challenge of communism, and the practical exercise of leadership and cabinet government.
What makes this book particularly compelling is how it illuminates the political craftsmanship behind Menzies’ success. Rather than portraying him simply as an ideologue, the essays reveal a pragmatic leader who blended liberal ideals (free enterprise, individual freedom, and democratic institutions) with a willingness to preserve workable elements of existing policy. The result was a political coalition broad enough to appeal to what Menzies famously called the “forgotten people”: ordinary Australians whose aspirations for stability, prosperity, and opportunity became central to post-war politics.
For contemporary readers, this history is surprisingly relevant. The book reminds us that many of the debates shaping Australia today (about the role of government, national security, economic policy, alliances, and political leadership) were already being contested in the early Cold War era. Understanding how earlier leaders navigated those questions provides valuable perspective on our own moment...
Overall assessment: The Menzies Watershed is a thoughtful and scholarly contribution to Australian political history. As the second volume in this series, it successfully captures the turning point when Menzies moved from political exile to shaping the long era that followed. It's an insightful read for historians, policymakers, and anyone interested in how ideas, institutions, and leadership can influence the course of a nation.
Very interesting story of how Menzies used nationalisation of banks by Labor to win 1949 election. That led to 4 election wins and standing down of his own free will in 1966. Quite a remarkable leader. He is folklore in Australia (Bob's your uncle) so to read his life story is intriguing. He reinvented himself and kept improving all through his career which is quite inspirational. Not many pull that off successfully.