The government became embroiled in a war of words with the CJC, and Sheldon's first budget as Treasurer reduced funding for the body. In October 1996 the government announced an inquiry into the CJC itself. This had a dramatic sequel when after the new inquiry, led by retired Queensland Supreme Court judges Peter Connolly and Kevin Ryan, requested that Carruthers hand over all records from his inquiry, he resigned without completing his inquiry, alleging interference. The Carruthers Inquiry was completed by Bob Gotterson and Brendan Butler, who ultimately exonerated all the participants from facing potential criminal charges.