Following the loss of the Thirteen Colonies, Sydney, as Home Secretary in the Pitt Government, was given responsibility for devising a plan to settle convicts at Botany Bay. His choice of Arthur Phillip as Governor was inspired, and Phillip's leadership was instrumental in ensuring the penal colony survived the early years of struggle and famine. On 26 January 1788, Phillip named Sydney Cove in honour of Sydney and the settlement became known as Sydney Town. In 1789 Townshend was created Viscount Sydney.