With Victoria reeling under billions of dollars of debt, Kennett was seen as "Premier-in-waiting" from the moment he retook the leadership. Cain had resigned a year earlier in favour of Deputy Premier Joan Kirner, who was unable to regain the upper hand despite being personally more popular than Kennett. The Liberals' advantage was strengthened by an important decision taken during Brown's brief tenure as leader—negotiating a Coalition agreement with the National Party. The Liberals and Nationals have historically had a strained relationship in Victoria; they had sat separately for most of the second half of the 20th century. It had been believed that Kennett had been denied victory in 1988 due to a large number of three-cornered contests in rural seats.