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===Grey Ministry=== In 1877, Ballance entered the cabinet of Sir [[George Grey]], a former [[Governor-General of New Zealand|Governor]] who was then Premier. Grey's policies were not closely aligned with those of Ballance, but Ballance believed that he could nevertheless accomplish something worthwhile. He was Minister of Customs, [[Minister of Education (New Zealand)|Minister of Education]], and later [[Minister of Finance (New Zealand)|Colonial Treasurer]]. His appointment to head the treasury was a surprise to most, giving a high office to a relative newcomer on the political stage.<ref name="Ballance DNZB" /> On 6 August 1878, Ballance delivered a financial statement, which was seen as the most significant since the public works announcement by Julius Vogel in 1870.<ref name="Ballance DNZB" /> Ballance set about reforming the tariff system by removing duties on basic necessities and introducing a modest though somewhat symbolic land tax, an idea he later revisited. His alliance with Grey ended with a notorious and very painful quarrel. Ballance found Grey far too controlling and authoritarian, resigning his portfolios yet still gave him confidence in the house.<ref name="Ballance DNZB" /> From [[1879 New Zealand general election|1879]] Ballance represented [[Whanganui (New Zealand electorate)|Wanganui]], but in [[1881 New Zealand general election|1881]] he lost by just four votes (393 to 397), and it was reported that seven of his supporters were too late to vote as their carriage broke down.{{sfn|McIvor|1989|p=105}} He returned to Parliament for Wanganui in [[1884 New Zealand general election|1884]].
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