At the time, the Loan Council was needed to approve of any foreign loans, whose approval the Whitlam Government did not attain. Apart from the sum of the loan being very large, reasons that cast considerable doubt on the loan was its source: the loan was being borrowed from Arab banks instead of the usual European. It so happened that the loan never eventuated. But that wasn’t the end of it: the media broke the news public. This embarrassing event had detrimental effects on favour for the Whitlam Government as questions of misconduct arose. This lead the Whitlam Government to being vulnerable and the Opposition, led by Malcolm Fraser, seized this opportunity to prevent the government’s budget. By using their numbers in the Senate, they were able to stop the passage of supply. The Age echoed Fraser’s stance when it …show more content…
The Government and the Opposition had held an equal amount of seats, as long as the two Independents voted with Labor, but on June 30, Labor Senator Bert Milliner died suddenly. A replacement was appointed who was openly hostile towards the Whitlam government despite being in the Labor Party but his right to sit was challenged. Even without this replacement in the senate, the Government would only be able to muster 29 votes to the Oppositions 30. Gough Whitlam had attempted multiple times to sway the majority in the senate but eventually failed to affect the votes and left him with a