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Leadership feud 'hurt' Aus govt
11/07/2006 12:39  - (SA)  

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  • Sydney - Australian Prime Minister John Howard admitted on Tuesday that a leadership feud had hurt his government but rejected suggestions that it signalled the end of his decade in power.

    Howard emerged from a cabinet meeting to tell reporters that he and ambitious Treasurer Peter Costello would remain in their jobs despite a public clash on Monday in which Costello came close to calling him a liar.

    But the conservative prime minister refused to address the issue at the heart of the row - whether he will stand down in Costello's favour before the next election due by late 2007.

    "It is the overwhelming desire of the parliamentary Liberal Party that Mr Costello and I in our current positions continue to work for the benefit of the Australian people and for the benefit of the Liberal Party," he said.

    "This has been a bad couple of days for the party. It will hurt it. But I do not believe the professional relationship between Mr Costello and me has broken down."

    In full damage control mode

    The row erupted on Monday when Howard denied promising in the past to stand down in Costello's favour, only for the treasurer to call a news conference to say that he had indeed made such an undertaking.

    Costello said Howard told him in 1994 that if he was given a free run for the Liberal Party leadership he would serve just a term and a half as prime minister before handing over power.

    Howard, who then won the party leadership without a challenge from Costello, went on to lead the Liberals to victory in 1996 - and in three subsequent elections.

    In full damage control mode Tuesday, Howard said: "As far as I'm concerned, the business of the government goes on."

    But the Australian media saw the situation differently, with the Financial Review saying "the destruction of one of the most successful partnerships in the history of Australian politics ... seems to be unfolding before our eyes".

    "It is now vitually impossible to imagine the Howard-Costello team leading the coalition to the next election, which will be held in about 15 months."

    The paper said the row had handed the opposition Labor Party and its leader Kim Beazley "an unimaginable propaganda coup".

    - SAPA



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