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Labor's support was not sufficient to keep the Daglish government in power, and it was dependent for its majority on a group of five independents.
Because of this, the Daglish government put forward no distinctively Labor policies, and worked for consolidation rather than rapid development ; in the press it was sometimes derisively referred to as the Mark Time Government.
After twelve difficult months, Daglish was finally defeated over the government's plans to buy out the Midland Railway Company for £ 1. 5 million, which was thought to be too large a sum.
The Daglish government was such a disappointment to Labor voters that when Cornthwaite Rason took over as premier and was granted an early dissolution, Labor lost seven of its 22 seats.
Ultimately, Daglish's ministry achieved little, and its main significance was that having Labor in government encouraged the various opposition groups to coalesce into a Liberal party, thus resulting in a two-party system for the first time.

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