This paper presents a critical analysis of the representation of physical education (PE) in the 1992 Senate inquiry into 'Physical and Sport Education' in Australia. Analysis focuses specifically upon how and why a new professional discourse, fundamental motor skills (FMS), gained a privileged position in the inquiry, the inquiry report and in subsequent PE policy and practice across Australia. This paper examines the complex policy processes and power-relations underpinning the progressive legitimisation of the FMS discourse, and identifies subtleties and variations in the expression of the discourse. Attention is drawn to the strategic appropriation of established professional discourses and utilisation of crisis discourses in establishing and gaining support for the FMS discourse. The analysis reaffirms policy arenas as sites of contestation but highlights that they are simultaneously sites of possibility for PE professionals who are prepared and able to use discursive resources in strategic ways. The contemporary relevance of the discourses privileged in 1992 and lessons to be learned from events surrounding the Senate inquiry are discussed.