The Progressive Conservatives were reduced to a minority government in the 1975 provincial election, but remained in power due to divisions among the opposition parties. Welch was re-elected for the newly created Brock constituency, while the redistributed division of Lincoln was won by the Liberal Party. Welch was appointed Government House Leader after the election, giving him the responsibility for working with opposition parties to ensure the passage of government legislation. He was also retained as Culture and Recreation Minister, and served as Commissioner of the Board of Internal Economy from November 4, 1975 to April 29, 1977.
