 He resigned from the Labor Party while still an elected member for the seat of Normanby and joined the Country Party because he was disillusioned with Labor's socialist policies.In his resignation speech he blamed the government for maladministration, the crippling of industry, the restriction of development and the creation of financial stringency and unemployment because of legislative measures.Petersen's defection came at a crucial time for the Government as at the time there was a serious outbreak of influenza leaving the Government with a one-seat majority.