In 1992, he ran for the leadership of the Nova Scotia Liberal Party,[4] losing on the second ballot to John Savage.[5][6]
In the 1993 election, Downe defeated Progressive Conservative cabinet minister Marie Dechman by almost 3,400 votes in Lunenburg West.[7][8] On June 11, 1993, Downe was appointed to the Executive Council of Nova Scotia as Minister of Natural Resources.[9] In March 1996, Downe was moved to Minister of Business and Consumer Services,[10][11] but was shuffled again in June 1996, when he was named Minister of Transportation and Public Works.[12] When Russell MacLellan was sworn-in as premier in July 1997, Downe remained as Minister of Transportation and Public Works.[13][14]
Downe was re-elected in the 1998 election.[15][16] On April 8, 1998, he was named Minister of Finance, Minister of Environment, Minister responsible for Aboriginal Affairs, and Deputy Premier.[17][18] In December 1998, the Environment portfolio was transferred to Michel Samson.[19] The Liberals lost government in the 1999 election, but Downe was re-elected by almost 1,000 votes in his riding.[20] Considered a possible leadership candidate following MacLellan's resignation as leader, Downe declined to enter the race.[6] On November 21, 2002, Downe announced that he would be not be running in the next provincial election,[21][22] and officially resigned as MLA on February 18, 2003.[23][24]
In 2008, Downe returned to politics and was elected the first mayor of the Municipality of the District of Lunenburg.[25][26] He was re-elected in 2012.[2] Downe did not for re-election in the 2016 municipal election.[3]