was starting to surface. The stock market crashed in October 1987, which spelled trouble for some of the government's private investments. The Rothwells merchant bank went into liquidation in November 1988. Dowding said the government could lose up to $100 million from the bank's collapse, however opposition frontbencher Bill Hassell said it would cost the government $400 million. The opposition ruled out blocking supply though. In November, the Labor Party paid for a two-minute prime time television commercial where Dowding made a speech promising that no more taxpayer money would be spent on Rothwells. Additionally, the government was under fire after the Teachers' Credit Society donated $5,000 to the Labor Party in April 1987 after receiving an extension on a loan from the R & I Bank, a state-owned bank. The donation was given back soon afterwards. In the 1988–89 state budget, there was 23% more spending on education and 26% more spending on police. This meant 1000 more police officers within three years, as well as 500 more teachers and 250 support staff for schools. This was in response to a 1988 national survey which showed that Western Australia had the largest classes in Australia. 66% of junior secondary classes had more than 25 students, and 36% had more than 30 students. The budget also included the release of 2000 state housing homes for sale, and the promise to build an electric railway line to Joondalup at a cost of $124 million. At the 1989 state election, the Labor Party had a primary vote swing of 10.5% against it, and a two-party-preferred swing of 6.5% against it. Despite this, the party only lost one net seat in the Legislative Assembly, as the largest swings occurred in safe Labor seats and marginal seats generally had smaller swings. Labor's 31 seats out of 57 were enough for a majority. Following the election, Dowding reshuffled his cabinet, removing himself from being the treasurer and the minister for productivity. Downfall Within six months of the 1989 election, some Labor MPs were dissatisfied with Dowding, finding him arrogant, rude, and difficult to work with. His popularity was also hurt by the District Court trial of Western Colleries Limited director Tony Lloyd. His defence lawyers had argued that Dowding and Acting Energy Minister Grill had ordered Lloyd to pay off a Rothwells debt using a $15 million cheque. In January 1990, Lloyd was found guilty