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===1997β2004: Meg Lees, Natasha Stott Despoja and Andrew Bartlett=== Under Lees' leadership, in the [[1998 Australian federal election|1998 federal election]], the Democrats' candidate [[John Schumann]] came within 2 per cent of taking Liberal Foreign Minister [[Alexander Downer]]'s seat of [[Division of Mayo|Mayo]] in the Adelaide Hills under Australia's [[Ranked voting systems|preferential voting]] system. The party's representation increased to nine senators, and they regained the balance of power, holding it until the Coalition gained a Senate majority at the [[2004 Australian federal election|2004 election]]. Internal conflict and leadership tensions from 2000 to 2002, blamed on the party's support for the Government's [[Goods and services tax (Australia)|Goods and Services Tax]], was damaging to the Democrats. Opposed by the Labor Party, the [[Australian Greens]] and independent Senator Harradine, the tax required Democrat support to pass. In an election fought on tax, the Democrats publicly stated that they liked neither the Liberal's nor the Labor's tax packages, but pledged to work with whichever party was elected to make theirs better. They campaigned with the slogan "No Goods and Services Tax on Food".<ref>{{cite web|url=http://australianpolitics.com/elections/1998/news3.shtml|title=(Day 21) Democrats Support GST, Want Food Exempt|publisher=AustralianPolitics.com|date=19 September 1998|access-date=22 February 2011|url-status=dead|archive-url=https://web.archive.org/web/20100405091416/http://australianpolitics.com/elections/1998/news3.shtml|archive-date=5 April 2010}}</ref> In 1999, after negotiations with Prime Minister [[John Howard|Howard]], Meg Lees, [[Andrew Murray (Australian politician)|Andrew Murray]] and the party room senators agreed to support the A New Tax System legislation<ref>{{cite web|url=http://www.treasury.gov.au/contentitem.asp?ContentID=167&NavID=|title=Australian Treasury: Tax Reform: Not a New Tax, A New Tax System|publisher=Treasury.gov.au|date=1 August 1998|access-date=1 February 2011|url-status=dead|archive-url=https://web.archive.org/web/20110315151452/https://www.treasury.gov.au/contentitem.asp?ContentID=167&NavID=|archive-date=15 March 2011}}</ref> with exemptions from goods and services tax for most food and some medicines, as well as many environmental and social concessions.<ref>Australian Democrats: [http://www.democrats.org.au/docs/2004/TAXATION_GST.pdf The GST and the New Tax System] Election 2004 Issue Sheet</ref><ref>{{cite web|url=http://australianpolitics.com/parties/democrats/01-01-20lees-speech.pdf|title=Senator Meg Lees's address to the Australian Democrats' National Conference, Brisbane, 20 January 2001y|access-date=2010-05-06|url-status=dead|archive-url=https://web.archive.org/web/20110927184311/http://australianpolitics.com/parties/democrats/01-01-20lees-speech.pdf|archive-date=27 September 2011}}</ref> Five Australian Democrats senators voted in favour.<ref>{{Cite news|publisher=Australian Broadcasting Corporation|first=Alexandra|last=Kirk|title=Democrats make good on GST compromise deal|date=19 June 1999|url=http://www.abc.net.au/pm/stories/s31775.htm|work=ABC PM, Radio National}}</ref> However, two dissident senators on the party's left, [[Natasha Stott Despoja]] and [[Andrew Bartlett]], voted against the GST.<ref>ABC TV: 7.30 Report: 7/6/1999: "[http://www.abc.net.au/7.30/stories/s28235.htm GST deal sparks Democrat crisis]" {{Webarchive|url=https://web.archive.org/web/20121111043021/http://www.abc.net.au/7.30/stories/s28235.htm |date=11 November 2012 }}]</ref><ref>John Kehoe "Lees has no regrets Democrats gave their support" ''[[Australian Financial Review]]'' 30 June 2010.</ref> The decision to pass the GST was opposed by the majority of the Democrats' members, and in 2001 a [[2001 Australian Democrats leadership spill|leadership spill]] saw Lees replaced as leader by Stott Despoja after a very public and bitter leadership battle.<ref>Phillip Coorey "Democrats in Denial" in David Solomon (ed) ''Howard's Race β Winning the Unwinnable Election'', Harper Collins, 2002, p42-44</ref><ref>Alison Rogers, ''The Natasha Factor'', Lothian Books, 2004, pp29ff</ref> Despite criticism of Stott Despoja's youth and lack of experience, the 2001 election saw the Democrats receive similar media coverage to the previous election.<ref>Phillip Coorey "Democrats Opt for Leadership" in David Solomon (ed) ''Howard's Race β Winning the Unwinnable Election'', Harper Collins, 2002, p180</ref> Despite the internal divisions, the Australian Democrats' election result in 2001 was quite good. However, it was not enough to prevent the loss of [[Vicki Bourne]]'s Senate seat in NSW. The [[2002 South Australian state election|2002 South Australian election]] was the last time an Australian Democrat would be elected to an Australian parliament. [[Sandra Kanck]] was re-elected to a second eight-year term from an upper house primary vote of 7.3 percent. Resulting tensions between Stott Despoja and Lees led to Meg Lees leaving the party in 2002, becoming an independent and forming the [[Australian Progressive Alliance]]. Stott Despoja stood down from the leadership following a loss of confidence by her party room colleagues.<ref>[http://www.abc.net.au/7.30/content/2002/s655339.htm Stott Despoja resigns as Democrats leader] {{Webarchive|url=https://web.archive.org/web/20050115013317/http://www.abc.net.au/7.30/content/2002/s655339.htm |date=15 January 2005 }}, ABC 7.30 Report, 21 August 2002</ref> It led to a protracted leadership battle in 2002, which eventually led to the election of Senator [[Andrew Bartlett]] as leader. While the public fighting stopped, the public support for the party remained at record lows. On 6 December 2003, Bartlett stepped aside temporarily as leader of the party, after an incident in which he swore at [[Liberal Party of Australia|Liberal]] Senator [[Jeannie Ferris]] on the floor of [[Parliament of Australia|Parliament]] while intoxicated.<ref>{{Cite news|url=http://www.theage.com.au/articles/2003/12/06/1070625583872.html|title=Disgraced leader steps aside|work=The Age|location=Melbourne|date=7 December 2003|access-date=3 April 2007}}</ref> The party issued a statement stating that deputy leader [[Lyn Allison]] would serve as the acting leader of the party. Bartlett apologised to the Democrats, Jeannie Ferris and the Australian public for his behaviour and assured all concerned that it would never happen again. On 29 January 2004, after seeking medical treatment, Bartlett returned to the Australian Democrats leadership, vowing to abstain from alcohol.
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