Premier and Opposition Leader
Philp was a prolific speculator and in 1893 he was forced by debt to resign from the board of directors of Burns, Philp. In May of the same year McIlwraith, now governing in coalition with Griffith in what was known as the "Continuous Ministry", appointed Philp as Minister for Mines. He held several other ministerial posts, such as Public Instruction, Railways, Public Works and Treasurer until 1899. when the Continuous Ministry was briefly unseated by the Labor government of Anderson Dawson. Philp was an able administrator. He codified mining regulations and encouraged the private development of railways throughout the colony. The railway construction process was alleged to be corrupt by the Labor members, and after narrowly winning a vote of confidence in November 1899 James Dickson resigned as Premier. Dawson's government lasted a week before losing Parliamentary support and Philp, despite his protestations in support of Dickson, was chosen as Premier by his colleagues.
The Australian colonies federated in 1901 and the new Prime Minister Edmund Barton immediately ended the trade in Kanakas. By this stage Queensland was severely depleted in revenue, and Federation exacerbated this situation by depriving Queensland of excise and customs funds. Despite a severe drought and the dire state of the state's finances, Philp was re-elected in 1902. Discontent brewed among Ministerialists who were bitter at missing out on Cabinet positions, and in August 1903 Digby Denham crossed the floor with supporters to bring down the government and form a coalition led by Arthur Morgan.
Philp, with his genial nature, was ill-suited to the position of Opposition Leader, and showed little enthusiasm in attacking the new government. Morgan briefly lost control of the Legislative Assembly in 1904 and Philp was called upon by Governor Sir Herbert Chermside to form a ministry, but could not secure sufficient support from among his colleagues. The end result was a dissolution of Parliament and a solid defeat of the Opposition. Philp resumed his position as Leader and his conciliatory treatment of the government continued when fellow Scot William Kidston became Premier. Philp cultivated good relations with Kidston and helped foster the increasing gap between Kidston and the Labor movement.
Philp's party was again unsuccessful in the elections of 1907. Kidston was encountering difficulties in securing the passage of his legislation through the intransigent Legislative Council and after Lord Chelmsford as Governor refused Kidston's request to appoint sufficient new councillors so as to give Kidston a majority, he resigned in November. Lord Chelmsford commissioned Philp as Premier, but, unable to entice any of Kidston's supporters to his cause, he remained without a majority in the Legislative Assembly, which promptly blocked supply. Over Kidston's protests, Lord Chelmsford guaranteed supply through the issuing of writs and then dissolved the Assembly, but Philp failed to win the subsequent election.
In 1908 Kidston, alienated from the Labor party, relied on Philp's support to pass legislation approving construction of private railways. By October the two leaders had sufficient in common that they negotiated a merger of their two parties, ending Philp's career as Opposition Leader.
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