Kelly, like most of his former Liberal colleagues, opposed Confederation. Even though the Tories were seen as less hostile to Confederation, Kelly and Pope (a delegate at the Charlottetown Conference) both voted for the 1866 "no terms" resolution in response to the Quebec Conference. Both politicians also voted for the "better terms" resolution in 1873, by which time Confederation had come to be viewed both as an economic necessity, and as a benefit for Prince Edward Island's Catholics. Pope and Kelly won their better terms, as the government in Ottawa increased their annual subsidy offer by $25 000. Prince Edward Island joined Confederation July 1 of that year.