Harold Edward Holt (5 August 1908) was an Australian politician who served as the 17th prime minister of Australia from 1966 until his disappearance and presumed death in 1967. He held office as leader of the Liberal Party of Australia and held various ministerial positions from 1949 to 1966 in the governments of Robert Menzies and Arthur Fadden.

Holt was born in Sydney and moved to Melbourne in childhood, studying law at the University of Melbourne. Before entering politics, he practised law and was a lobbyist for cinema operators. He was first elected to the House of Representatives at the 1935 Fawkner by-election, aged 27, as a member of the United Australia Party (UAP). Holt was made a minister without portfolio in 1939, when his mentor Robert Menzies became prime minister. His tenure in the ministry was interrupted by a brief stint in the Australian Army, which ended when he was recalled to cabinet following the deaths of three ministers in the 1940 Canberra air disaster. The government was defeated in 1941, sending the UAP into opposition, and he joined the new Liberal Party upon its creation in 1945.

When the Liberals came to office in 1949, Holt became a senior figure in the new government. As Minister for Immigration (1949–1956), he expanded the post-war immigration scheme and relaxed the White Australia policy for the first time. He was also influential as Minister for Labour and National Service (1949–1958), where he handled several industrial relations disputes. Holt was elected deputy leader of the Liberal Party in 1956, and after the 1958 election replaced Arthur Fadden as Treasurer. He oversaw the creation of the Reserve Bank of Australia and the decimal Australian dollar, but he was blamed for a credit crunch that almost cost the Coalition the 1961 election. However, the economy soon rebounded, and Holt retained his place as Menzies' heir apparent.

Holt became prime minister in January 1966, elected unopposed as Liberal leader following Menzies' retirement. He fought a general election later that year, winning a landslide victory. The Holt government continued the dismantling of the White Australia policy, amended the constitution to give the federal government responsibility for indigenous affairs, and took Australia out of the sterling area. Holt promoted greater engagement with Asia and the Pacific, and made visits to a number of East Asian countries. His government expanded Australia's involvement in the Vietnam War, and maintained close ties with the United States under President Lyndon B. Johnson. While visiting the White House, Holt proclaimed that he was "all the way with LBJ", a remark which was poorly received at home.

In December 1967, Holt disappeared while swimming in rough conditions at Cheviot Beach, Victoria. He was presumed dead, although his body was never recovered; his disappearance spawned a number of conspiracy theories. Holt was the third Australian prime minister to die in office. He was succeeded by Country Party leader John McEwen on an interim basis and then by John Gorton. His death was commemorated in a number of ways, among them by the establishment of the Harold Holt Memorial Swimming Centre in Melbourne, and the Harold E. Holt Naval Communication Station in Exmouth, Western Australia.

Early life

Birth and family background

Harold Edward Holt was born on 5 August 1908 at his parents' home in Stanmore, New South Wales, a suburb of Sydney. He was the first of two sons born to Olive May (née Williams; formerly Pearce) and Thomas James Holt; his younger brother Clifford was born in 1910. His parents had married seven months before his birth, in January 1908.

Holt's mother was born in Eudunda, South Australia, and had Cornish, English, German, and Irish ancestry; her sister was the actress Vera Pearce. Holt's father had trained as a schoolteacher in Sydney and was working as a physical education teacher at the Cleveland Street School in Surry Hills at the time of his son's birth. His paternal grandfather Thomas Holt Sr. owned a large farming property in Nubba, and was twice elected mayor of nearby Wallendbeen. He was more distantly descended from James Holt, a cobbler from Birmingham, England, who arrived in New South Wales in 1829.

Education

thumb|Holt as a young man in the 1930s|left|195x195px

In 1914, Holt's parents moved to Adelaide, where his father became the licensee of a hotel in Payneham. He and his brother stayed behind in Sydney, living with an uncle and attending Randwick Public School. In late 1916, Holt was sent to live with grandparents in the country, where he briefly attended the Nubba State School. He returned to Sydney the following year, and for three years was enrolled at Abbotsholme College, a private school in Killara; his parents separated around that time. In 1920, Holt began boarding at Wesley College, Melbourne. He was a popular and talented student, winning a scholarship in his final year and graduating second in his class. Holt generally spent school holidays with his relatives in Nubba or with schoolmates, rather than with his parents – his father had begun working as a talent agent, touring the country on the Tivoli circuit, while his mother died in 1925. He was 16 at the time, and was unable to attend the funeral.

In 1927, Holt began studying law at the University of Melbourne, living at Queen's College on a scholarship. He represented the university in cricket and football, and was also active in various student organisations, serving as president of the Law Students' Society and of the Queen's College social club. Holt won prizes for oratory and essay-writing, and was a member of the inter-university debating team. He graduated with a Bachelor of Laws degree in 1930. Holt's father – living in London – invited him to continue his studies in England, but he declined the offer.

Holt served his articles of clerkship with the firm of Fink, Best & Miller. He was admitted to the Victorian Bar in late 1932, and opened his own legal practice the following year. However, clients during the Depression were scarce and frequently underpaid, so Holt lived in a boardinghouse and often relied upon the hospitality of friends. Drawing on his family connections in show business, he eventually accepted an offer to become secretary of the Victorian Cinematograph Exhibitors' Association, a film industry lobby group. In this capacity he appeared several times before the Commonwealth Court of Conciliation and Arbitration. This had a positive effect on his own practice, and he eventually took on two partners, first Jack Graham and later James Newman. The firm of Holt, Graham, & Newman was dissolved in 1963, following a financial dispute and subsequently reconstituted as Holt, Newman, & Holt, with Holt's son Sam as the new addition. Holt's involvement in the practice declined once he entered politics and ceased altogether in 1949, although he did not formally retire until assuming the prime ministership.

Early political career

thumb|Holt with [[Robert Menzies on 26 April 1939, the day Menzies first became prime minister|left|217x217px]]

In 1933, Holt joined the Young Nationalists, the youth wing of the United Australia Party. He cultivated a friendship with Mabel Brookes, and through Brookes became acquainted with senior members of the influential Australian Women's National League (AWNL). He also secured the patronage of Robert Menzies, with whom he shared a similar background and political views. At the 1934 federal election, Holt stood for the UAP in the Division of Yarra. It was a safe seat for the Labor Party, held by the party's leader (and former prime minister) James Scullin. Holt lost heavily, as was expected, but was praised for his campaigning. Early the following year, he contested Clifton Hill – another safe Labor seat – at the Victorian state election, losing to Bert Cremean. Holt was eventually elected to parliament on his third attempt, winning a federal by-election for the seat of Fawkner in August 1935; his predecessor, George Maxwell, had died in office. He won UAP preselection against five other candidates, a victory which Smith's Weekly attributed to his "political godmothers" in the AWNL. His new seat was centred on Melbourne's wealthy inner-eastern suburbs.

Holt was twenty-seven years old when he entered parliament, making him its youngest member. He kept a relatively low profile in his first few years, but spoke on a wide range of topics. When Robert Menzies became prime minister in April 1939, he made Holt one of four ministers without portfolio. His inclusion was made possible by the collapse of the coalition with the Country Party – previously a certain number of positions had been reserved for Country MPs, but the new ministry was composed solely of UAP members. Although Holt officially had no portfolio, he effectively was an assistant minister to Richard Casey, who headed the Department of Supply & Development. He was given responsibility for the Council for Scientific and Industrial Research (CSIR), and also acted for periods as Minister for Trade and Customs and Minister for Civil Aviation and Air while the incumbents were overseas. Holt's first stint as a government minister came to an end in March 1940, when the coalition with the Country Party was reinstituted. His replacement was Arthur Fadden, another future prime minister.

World War II

Military service

Holt enlisted in the Militia in February 1939, joining a part-time artillery unit for businessmen and professionals. He was given indefinite leave during his ministerial service. In May 1940, without resigning his seat, Holt enlisted in the Australian Imperial Force with the intent of becoming a full-time soldier. Several of his parliamentary colleagues did likewise at various points in the war. Holt was posted to the 2/4th Field Regiment, holding the rank of gunner. He had been offered a commission as an officer in the Royal Australian Air Force, but declined due to his lack of experience. In a press statement, Holt said "as the youngest member of the House, I could not feel happy in my position if I were not prepared to make some sacrifice and take an active part". He was sent to Puckapunyal for training, and expected to be posted to North Africa or Palestine.

Return to the ministry, 1940–1941

thumb|upright|Holt in 1940

Holt's brief military career came to an end as a result of the Canberra air disaster on 13 August, which killed three senior government ministers. Menzies called an early general election for 21 September, which resulted in a hung parliament and a UAP–Country minority government. Holt was given leave from the army to campaign, and won re-election with a large majority. Menzies subsequently asked him to return to cabinet, to which he agreed. Holt was sworn in as Minister for Labour and National Service on 28 October, and formally resigned from the army the same day. He was placed in charge of the new Department of Labour and National Service, which took over most of the responsibilities of the previous Department of Industry. He also became a member of the bipartisan Advisory War Council, although he personally favoured the establishment of a national unity government with the Labor Party.

As labour minister, Holt's foremost task was to prevent industrial disputes from disrupting the war effort. He met with union leaders and employer groups, and secured their agreement to a streamlining of the arbitration process while the war was underway. When leadership troubles hit the Coalition later in the year, Holt initially supported Menzies. However, he and five cabinet colleagues eventually transferred their allegiance to Arthur Fadden, the leader of the Country Party, believing this way the only to ensure stable government. Menzies felt he had been betrayed, but forgave Holt and accepted his assurances that he had been acting in the best interests of the country. He retained his portfolios in the Fadden government, which lasted only 40 days before being defeated on a confidence motion in October 1941.

Opposition, 1941–1949

After going into opposition, Holt kept a reasonably low profile for the remainder of the war, except for his membership of the Joint Committee on War Expenditure. He was criticised by some for not re-joining the army, and at the 1943 election was opposed by Brigadier William Cremor, whose campaign was funded by Sydney businessmen (including Keith Murdoch). He lost a significant portion of his primary vote, but suffered only a small swing on the two-party-preferred count. Menzies returned as leader of the UAP in September 1943, and Holt was initially a candidate for the deputy leadership; he withdrew once former prime minister Billy Hughes entered the race. Holt was in favour of the creation of the Liberal Party as a successor to the UAP, but played little role in the practical aspects of its establishment. He became an official member of the new party in February 1945.

Menzies government, 1949–1966

thumb|upright|Holt in 1953

Holt transferred to the newly created seat of Higgins at the 1949 federal election, which saw the ALP government defeated in a landslide. In the new government he was re-appointed to his former post of Minister for Labour and National Service and was also made Minister for Immigration, with Menzies returning as prime minister at the head of a coalition between the Liberal Party and Country Party. In 1955, Holt publicly welcomed Australia's one millionth post-war migrant and said he was "looking forward to our second million". The following year, following the Soviet invasion of Hungary, he secured cabinet approval for 10,000 Hungarian refugees to settle in Australia. As opposition spokesman for immigration, Holt had been critical of previous immigration minister Arthur Calwell's treatment of Lorenzo Gamboa, a Filipino man with an Australian wife and children who had been denied entry by Calwell due to his race. One of his first acts as minister was to allow Gamboa to enter Australia and reunite with his family.

Labour and national service minister, 1949–1958

As labour minister, Holt was credited with reducing industrial conflict, with working hours lost to strikes reducing significantly during his tenure. He had a close relationship with Albert Monk, the president of the Australian Council of Trade Unions (ACTU), which led to criticism from Monk's colleagues in the labour movement and led Calwell to speak of a "Holt-Monk axis". In 1950, at Monk's suggestion, Holt commissioned the first national inquiry into vocational education and training, with a particular focus on apprenticeship schemes. He also had a good working relationship with Jim Healy, the general secretary of the Waterside Workers' Federation which had been the source of several industrial disputes.

Holt introduced legislation in 1951 to mandate the use of secret ballots in union elections. After the High Court's ruling in the Boilermakers' case in 1956, he also oversaw the replacement of the Commonwealth Court of Conciliation and Arbitration with a separate Commonwealth Industrial Court, "thus establishing the modern form of the federal arbitration system". As Treasurer, Holt relied strongly on the advice of Treasury secretary Roland Wilson. His achievements included major reforms to the banking system (originated by Fadden)including the establishment of the Reserve Bank of Australiaand the planning and preparation for the introduction of decimal currency. It was Holt who convinced Cabinet to call the new currency the "dollar" rather than the "royal".

The economy Holt inherited was growing strongly, aided by the opening of new iron ore mines. However, in 1959, inflation was running at 4.5% and Treasury was alarmed. Holt was reluctant to act, but in November 1960 introduced a deflationary package of tax changes. He also reluctantly agreed to an interest rate rise by the Reserve Bank. The credit squeeze was nicknamed the "Holt jolt". The economy went into recession, and unemployment rose to three percent, which was considered high for the time and contrary to the government's policy of full employment.

The credit squeeze brought the Coalition dangerously close to losing the 1961 election, with the Coalition being returned with a precarious one-seat majority. There were calls for Holt to be sacked, but he retained Menzies' support. He later described 1960–61 as "my most difficult year in public life". Most of the deflationary measures were reversed in 1962, In later budgets, Holt retreated to his Queensland holiday home while it was being prepared. He said that the 1965 budget "has had the best reception yet of any in the series I have presented".

Prime Minister (1966–1967)

thumb|left|Holt (right) moments after being sworn in as Prime Minister on 26 January 1966

Holt was sworn in as prime minister on 26 January 1966, following the retirement of Robert Menzies six days earlier. He won the leadership election unopposed, with William McMahon elected as his deputy. His swearing in was delayed by the death of Defence Minister Shane Paltridge; he and Menzies were both pallbearers at Paltridge's state funeral on 25 January. Holt was the first Australian prime minister born in the 20th century and the first born after federation. He was almost fourteen years younger than his predecessor, but, at the age of 57, was still the fourth-oldest man to assume the office.

He had been an MP for over 30 years before becoming prime minister, still the longest wait for any non-caretaker Prime Minister. The only person who had a longer wait was his caretaker successor John McEwen, who had served 33 years before ascending to the post. Stylistically, Holt was more informal and contemporary than Menzies, and his wife accompanied him into the political spotlight.

thumb|250px|left|Holt (2nd from left) with other world leaders at the [[Manila Summit Conference in October 1966]]

Holt's initial cabinet was virtually unchanged from that of his predecessor. John Gorton and Les Bury were promoted to replace Menzies and Paltridge, but there were no other changes in composition. There were also no major changes in portfolio, outside of McMahon's promotion to Treasurer in place of Holt. A notable addition to the outer ministry was Senator Annabelle Rankin as Minister for Housing – the first woman to hold a ministerial portfolio. A minor reshuffle occurred after the 1966 election, with Doug Anthony and Ian Sinclair added to cabinet and Charles Barnes demoted to the outer ministry. The only new government department created during Holt's tenure was the Department of Education and Science, established in December 1966, which was the first federal department specific to either of those areas.

Holt received little credit for the Coalition's election victory, even from within his own party. It was generally held that the Labor Party's poor campaign had been the major factor in its defeat. Arthur Calwell, the Leader of the Opposition, was 70 years old and had limited personal popularity – a Gallup poll before the election placed his personal approval rating at 24 percent, compared with Holt's 60 percent. Calwell had suffered a damaging rift with his deputy Gough Whitlam earlier in the year, and the general public still perceived the party as divided. In an election where the Vietnam War was a major campaign issue, he and Whitlam publicly contradicted each other on major policy decisions. Labor ran on an anti-war platform, but struggled to appeal to voters concerned about national security; combined with Calwell's dedication to the White Australia policy, this allowed the party to be portrayed as isolationist and naive about external affairs.