he often sparred. When Don Chipp resigned from the federal Liberal Party, and stated his intention to create a centrist and progressive "third force" in Australian politics, Millhouse's New LM responded. Chipp's Australian Democrats was created, and negotiations began for a merger between the two parties. The New LM candidates at the 1977 state election stood under a joint New LM-Australian Democrats ticket, winning 12.3 per cent of the vote in the 12 electorates they contested, and Millhouse defeated the Liberal candidate in the lower house seat of Mitcham, which he would hold until resigning from parliament in 1982. The merger was finalised on 3 October 1977 and the New LM was absorbed into the Democrats. Meanwhile, the interstate branches of the LM, which had been in existence for only six months, either disbanded in 1976, or eventually evolved and merged into state components of the Democrats. The Western Australian division of the LM was the strongest interstate branch and renamed itself the Centre Line Party before becoming the state branch of the Democrats. David Tonkin, an LM member before it split and became a separate party, had gained the Liberal party leadership in 1975, succeeding Eastick. He worked swiftly to heal the internal party wounds, and to re-establish the non-Labor forces and provide an effective opposition. The 1977 state election saw a decline in Liberal support, but the party gained power soon after the resignation of Premier Dunstan, with an 11 per cent swing at the 1979 state election, receiving 55 per cent of the two-party-preferred vote, though losing office after one term at the 1982 state election. The first Democrats MLC was also elected in 1979 on a first preference vote of 6.5 per cent. The Democrats continued to attract support, and held the balance of power in the Legislative Council for most of the time from the 1979 state election until the 1997 state election. Parliamentarians Steele Hall Robin Millhouse Martin Cameron John Carnie David Boundy All went back into the fold of the LCL successor, the South Australian Division of the Liberal Party of Australia, except for Millhouse who joined the New Liberal Movement (New LM), one of the predecessor parties that would form the Australian Democrats. Notes References 1973 establishments in Australia 1976 disestablishments in Australia Defunct liberal political parties Defunct political parties in South Australia Liberal Party of Australia Political parties disestablished in 1976