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New South Wales Legislative Council

Why Nations Fail: The Origins of Power, Prosperity, and Poverty

The New South Wales Legislative Council marked a transitional stage in the colony’s movement from rule by a governor toward representative political institutions. Created first as an appointed body in 1823 and reconstituted in 1842 with two-thirds of its members elected, it embodied a widening contest over who could participate in government and whose interests colonial institutions would serve.

Creation and Early Composition

Until 1823, the governor of New South Wales ruled more or less on his own. That year, the British government limited his powers by creating a council, but initially appointed members from the Squatters and the nonconvict elite, including John Macarthur. The arrangement introduced a council without making political power broadly representative: its composition gave established interests an early place in the body while the governor’s authority was constrained.

Pressure for Broader Representation

The council’s restricted beginnings could not contain demands for political participation. Ex-convicts and many newly arrived free settlers also opposed continued transportation of convicts from Britain, which increased competition in the labor market and depressed wages. The Squatters favored low wages, but they lost this contest: transportation to New South Wales ended in 1840.

In 1842, a legislative council was established with two-thirds of its members elected and the remaining third appointed. Ex-convicts could vote and stand for office if they held sufficient property, and many met that qualification. The change did not eliminate property-based limits, but it moved the council beyond appointment by the colonial authorities and opened formal political participation to some former convicts.

From Council Government to Wider Inclusion

By the 1850s, adult white men in Australia had gained suffrage, and the demands of citizens, ex-convicts, and their families had gone further than the political vision John Macarthur’s ally William Wentworth had once entertained. Wentworth had shifted to the conservative position of insisting on an unelected Legislative Council, but, like Macarthur, could not stop the movement toward more inclusive institutions.

The account places the council’s development within a broader contrast between New South Wales and colonies built on the exploitation of Indigenous populations, precious metals, or plantation crops. Those conditions, it argues, were absent in New South Wales, where neither an extractive labor system nor an elite monopoly on political representation could simply be imposed and sustained. Pressure from settlers instead helped produce economic and political institutions that became more inclusive together. The council’s changing composition was one part of that larger institutional evolution, rather than its endpoint.