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By January 1995, internal Liberal Party polling showed that with Downer as leader, the Coalition had a slim chance of holding its marginal seats in the next election, let alone of winning government. In mid-January Downer began negotiating in with former leader now back-bencher John Hewson, but this resulted in Hewson publicly declaring he wanted the shadow Treasury portfolio which meant Downer would have to sack deputy leader Peter Costello from the position. On 30 January 1995, he resigned as Liberal Leader.