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.[3] On 30 January 1995, he resigned as Liberal Leader.