the MATS plan. Poker machines were introduced in South Australia, a decision Bannon would come to regret decades later. Other measures were introduced such as action to prevent destruction of vegetation and urban renewal programmes to invigorate some of the declining inner suburbs in Adelaide. The economic situation, very difficult in the early 80s, improved substantially in 1983-84. Bannon's government was easily re-elected at the 1985 election, achieving a 2.2 percent two-party swing towards them from the Liberal opposition and a four-seat majority. However, the economy experienced another downturn in the late 80s/early 90s recession, and Bannon paid the price at the 1989 election, when the ALP won only 48 percent of the two-party vote: a swing of 5.2 percent against it. Both major parties won 22 seats each in the hung parliament, two short of a majority. Labor was able to form minority government with the confidence and supply support of the two Labor independent MPs, Martyn Evans and Norm Peterson. Peterson became Speaker of the South Australian House of Assembly following the election. Shortly thereafter, electoral legislation was passed with the objective that the party which receives over 50 percent of the statewide two-party vote at the forthcoming election should win the two-party vote in a majority of seats, through a compulsory strategic redrawing of electoral boundaries before each election, making South Australia the only state to do so. One element of the Playmander remains to this day which contributes to the above: the change from multi-member to single-member seats. It was only the second time that a Labor government in South Australia had been re-elected for a third term (the first time was when Dunstan won in 1977). In April 1988, Bannon was elected Federal President of the Labor Party. He held that position until June 1991. State Bank and resignation Bad lending decisions made by the State Bank of South Australia's board and managing director Tim Marcus Clark were exposed. As the bank's owner, the government was the guarantor of $3 billion worth of loans. Bannon remained as Premier during three inquiries, the last two of which cleared him of any deliberate wrongdoing. Upon resigning as head of government, he announced that he would not contest his seat of Ross Smith in the coming election. Lynn Arnold replaced Bannon as Premier but was unable to stave off a landslide defeat at the 1993 election. Labor achieved