Shortly before the 2001 election, he faced a crisis when a CJC inquiry - the Shepherdson inquiry - revealed that a number of MPs and party activists, including Deputy Premier Jim Elder, had been engaged in breaches of the Electoral Act by falsely enrolling people to boost their faction's strength in internal party ballots. As well a former State Secretary and newly elected MP Mike Kaiser, and a senior adviser to Wayne Goss had been falsely enrolled some 16 years earlier as part of a factional battle. Beattie acted swiftly, forcing a number of MPs to quit politics and forcing Elder to resign as Deputy Premier. In the ensuing campaign, Beattie claimed a Labor win would ensure stable government. He argued the only alternative was a Coalition government propped up by One Nation and former One Nation MPs—an argument that gained particular resonance when Borbidge's own party room reneged on Borbidge's promise not to preference One Nation. Beattie was rewarded with a smashing victory, winning 66 seats out of 89—the biggest majority Labor has ever won in an election. It also took all but one seat in Brisbane.