Dibbs was Colonial Secretary in the ministry of Sir Patrick Jennings from February 1886 to January 1887. Dibbs was a free tradeer, however the government introduced an ad valorem tax of 5%, which Dibbs denied was a protective tariff. Parkes formed the Free Trade Party and fought the 1887 election on the fiscal question of free trade or protection. While Dibbs supported free trade, he opposed Parkes, and stood as an independent free trade candidate. Dibbs was politically isolated and in July 1887 joined the Protectionist Party.