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The New Zealand Liberal leadership election, 1889 was held on 6 July 1889 to choose who would lead New Zealand's parliamentary opposition and, ultimately, decide the inaugural leader of the New Zealand Liberal Party. The election was won by Wanganui MP John Ballance.
After the Stout–Vogel Ministry had been defeated in the polls at the 1887 election parliament's liberal wing was in disarray. The MPs had lost their leader Sir Robert Stout, and were overwhelmingly tasked with defeating the sitting ministry headed by Harry Atkinson at the next general election. Sir Julius Vogel became the leader of the opposition with Stout out of Parliament, however he too decided to retire in early 1889. Parliament continued and the opposition politicians were in limbo with little real leadership. To address these concerns a caucus was organised to select a new leader from amongst them to rival Atkinson and win back power in 1890.
Ballance had been a leading figure in parliament's liberal faction for years and was a prominent critic of Atkinson. He had been a minister in the two previous liberal ministries of Sir George Grey and Sir Robert Stout. After Stout lost his seat in 1887, Ballance had been urging him to return and once again lead the liberal cause in parliament. Stout declined, and after his retirement from politics was known to Ballance, he took the initiative to stake his own claim to the leadership.
Walker had been in Parliament from 1884 representing the Ashburton electorate. Like Ballance, he had progressive views and was a personal friend of both him and Stout. Prior to entering parliament he had involved in provincial politics as a member of the Canterbury Provincial Council.
The election was conducted through a members' ballot by the opposition caucus upon which Ballance was successful. Walker made known his support for Ballance and a second vote entailed at his request, the vote unanimous.