Peter Costello
Encyclopedia
Peter Howard Costello AC (born 14 August 1957) is an Australia
n politician
and lawyer
who served as the Treasurer
in the Australian government from 1996 to 2007. He is the longest-serving Treasurer in Australian history. Costello was a Member of the Australian House of Representatives
from 1990 to 2009, representing the Division of Higgins
. He also served as the Deputy Leader of the Liberal Party
from 1994 to 2007.
On 18 September 2008, Costello was appointed to the World Bank
's new Independent Advisory Board (IAB) to provide advice on anti-corruption measures.
, is a prominent Baptist
minister and current CEO of World Vision
Australia. Costello was educated at Carey Baptist Grammar School
and attended Melbourne's Monash University
, where he graduated in arts and law.
During the 1980s, Costello was a solicitor at the law firm Mallesons Stephen Jaques
, then became a barrister and represented employers in some of Australia's best known industrial relations disputes.
In 1983 and 1984, Costello represented the National Farmers' Federation
in a case against the Australasian Meat Industry Employees Union
(AMIEU). The AMIEU was seeking a unit tally system to be set up in abattoirs in the Northern Territory
. The dispute focussed on one abattoir Mudginberri which chose to fight the AMIEU claim. Ultimately the AMIEU claim was unsuccessful.
Costello became counsel to organisations representing small business
and rose to prominence in the 1985 Dollar Sweets
case, as junior counsel assisting Alan Goldberg QC, successfully representing a confectionery company involved in a bitter industrial dispute.
During his student years, Costello was active in student politics as a socially radical Christian. For a time, he was an office-bearer of the Social Democratic Students Association of Victoria, an affiliate of the Balaclava
Branch of Australian Young Labor
. In 1977, Costello was assaulted by a left-wing student politician, receiving mainstream media attention for the first time in his career as a result.
After graduating, Costello became more conservative but retained liberal views on some social issues. In 1984 he was a founding member of the H. R. Nicholls Society
, a think tank
on industrial relations. In the late 1980s, he was identified as part of the New Right
movement, which was organised to some extent in the H. R. Nicholls Society.
in a preselection ballot for the safe Liberal electorate of Higgins
, Costello entered the House of Representatives
at the age of 32. Costello made his maiden speech in May 1990 and mentioned "government should be subservient to the citizen; the Executive accountable to the representative parliament; and the monopoly give way in the face of the individual." He was immediately promoted to the Opposition front bench and proved an effective debater against the Labor government of Bob Hawke
and Paul Keating
. By 1992 he was shadow Attorney-General, and in 1993 he became shadow Finance Minister under Dr John Hewson
.
Hewson's shock defeat at the 1993 election brought Costello into consideration as a leadership contender. When Hewson was deposed as Liberal leader in May 1994, Costello supported Alexander Downer
for the leadership, becoming his Deputy Leader and shadow Treasurer. However, in January 1995, Downer resigned. Costello did not seek the leadership, instead supporting John Howard
. It was revealed in July 2006 that this was due to a December 1994 meeting between Howard, Costello and Ian McLachlan
during which Howard allegedly agreed to stand aside after one and a half terms as Prime Minister in return for Costello's agreement not to challenge for the leadership. Howard denied that this was a formal arrangement.
As Deputy Leader until 2007, he was the longest serving in that role, achieving that status in 2006 after breaking the record of the party's first Deputy Leader Sir Eric Harrison
.
's Paul Keating
, and Costello became Federal Treasurer at age 38. He oversaw the return to and maintenance of federal budget surpluses, which enabled significant reduction in government debt. Inflation, interest rates and unemployment all fell and remained generally low during Costello's term as Treasurer, although average household debt more than doubled. Inflation and interest rates crept up toward the end, with the International Monetary Fund
describing his last budgets as "inflationary".
Tax reform became a major policy focus for Costello. Although John Howard had promised during the 1996 election campaign that he would "never, ever" introduce a GST, it returned as Liberal Party policy for the 1998 election. It was passed through the Senate
with the help of the Australian Democrats
. Until July 2005, Costello's own agenda of labour market deregulation remained blocked by the government's lack of a Senate majority.
In 1998, Costello and his wife Tanya, along with Tony Abbott
and his wife Margaret, successfully sued author Bob Ellis
for false statements he made about them in his book Goodbye Jerusalem.
Costello advocated for change to a republic at the Australian Constitutional Convention 1998
. He rejected any suggestion that Australia was not already an independent nation and said that the Australian Constitution works "remarkably well". It was the institution of monarchy that was the crux of his argument for change:
Costello supported the 1999 referendum
on whether Australia should become a republic
. However, he has also stated, at a Liberal and National Party gathering in 1992 in company with John Sharp MP, that he would support an Australia-based system of constitutional monarchy, in which a member of the House of Windsor would be invited to relocate to Australia and serve as the monarch of Australia, in place of the current system in which the crowns of Australia and the United Kingdom are both held by the same individual.
After the 2001 election, he attracted criticism for not securing funding for a key election promise to extend the Medicare safety net.
In February 2006, Costello caused controversy during a lecture at the Sydney Institute
when questioned about the government's refusal to legally recognise same-sex marriage. He stated, "I think we do recognise the rights of gay and lesbian people in Australia. We do not criminalise [their] conduct or behaviour." He also pointed out that the law was changed in 2004 to recognise same-sex couples with regards to superannuation. He stated that marriage should only be recognised between heterosexual
couples. Also during the same speech, Costello criticised "mushy misguided multiculturalism
," warning immigrants that the acceptance of Australian values was "not optional."
Costello expected to gain the Liberal leadership some time during Howard's second term as Prime Minister, as per Howard's alleged December 1994 offer. When this did not eventuate, he showed signs of frustration and was visibly disappointed when Howard announced, in July 2003, his intention to lead the government into the 2004 election.
During the 2004 election campaign, Howard avoided saying whether he would serve a full term if re-elected, saying only he would remain as long as his party supported him. The government's subsequent success in winning control of the Senate
raised further speculation that Howard would delay his retirement, and the prospect of a Costello leadership succession appeared to recede.
In July 2006, the alleged Costello/Howard succession deal was made public by Ian McLachlan. Costello confirmed the incident had occurred and that he shared McLachlan's interpretation of events. Howard denied the claims repeatedly, stating the continued public drama displayed "hubris and arrogance" and that the leadership was the party room's to decide, not a prize to be handed over by leaders to successors.
Press Gallery columnist Michelle Grattan
described Costello's actions :
Despite tensions between the Prime Minister and the Treasurer, nothing further came of those events. Neither Howard nor Costello took any action to remove the other from office, or resign. However, on 12 September 2007, amid renewed leadership tensions and a series of unfavourable public polls, Howard confirmed he would step aside well into the next term, if re-elected, and that Costello would be his "logical successor".
A federal election was held on 24 November 2007. An exit poll
of 2,787 voters by Auspoll, commissioned by Sky News, included a question on the statement "I don’t want Peter Costello to become Prime Minister". Fifty-nine per cent agreed, while 41 per cent disagreed. The Coalition
lost the election.
However, as former opposition leader Brendan Nelson
struggled, speculation mounted that Costello would change his mind and seek the leadership. In August 2008, he ruled out challenging Nelson, but did not comment on the prospect of Nelson stepping aside in his favour.
Finally in September 2008, just before the release of his memoirs, The Costello Memoirs
, Costello specifically re-confirmed that he would not be seeking leadership of the party and would leave politics at a time that suited him. Media attention immediately shifted to whether Costello's decision cleared the way for a leadership challenge by opposition leader Malcolm Turnbull
(shadow treasurer at the time). Former fellow Minister Tony Abbott
described the decision as a great loss to Australia and to Costello himself, who might continue to have regrets for the rest of his life at what might have been. Media outlets capitalised on Costello's failure to categorically rule out any future leadership challenge. An incumbent-announced leadership spill
on the morning of Costello's book release saw Turnbull defeat Nelson. Costello under Turnbull remains unwilling to rule out ever leading the Liberal Party. Costello remained as an opposition backbencher. On 18 September 2008, Costello was appointed to the World Bank
’s new Independent Advisory Board, (IAB), which will provide advice on anti-corruption measures.
On 15 June 2009, Costello announced that he would retire from Parliament at the next Federal election. However on 7 October 2009, Costello announced he would be resigning from Parliament when it resumed later in the month. He resigned on 19 October 2009, triggering the 2009 Higgins by-election
.
's Board of Guardian, and commenced this role in December 2009. He is also a managing partner of BKK Partners
, a boutique corporate advisory run by former Goldman Sachs JBWere
managers. He also chairs the advisory board of specialist corporate advisory firm ECG Advisory Solutions.
Costello also writes a regular column for Fairfax newspapers.
In October 2010, controversy resurfaced with the publishing of Howard's memoirs, regarding the incident. Former Liberal leader Dr John Hewson
said Costello "never had the balls to challenge Howard."
, Australia's highest civilian honour, on 26 January 2011.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n politician
Politician
A politician, political leader, or political figure is an individual who is involved in influencing public policy and decision making...
and lawyer
Lawyer
A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person who is practicing law." Law is the system of rules of conduct established by the sovereign government of a society to correct wrongs, maintain the stability of political...
who served as the Treasurer
Treasurer of Australia
The Treasurer of Australia is the minister in the Government of Australia responsible for government expenditure and revenue raising. He is the head of the Department of the Treasury. The Treasurer plays a key role in the economic policy of the government...
in the Australian government from 1996 to 2007. He is the longest-serving Treasurer in Australian history. Costello was a Member of the Australian House of Representatives
Australian House of Representatives
The House of Representatives is one of the two houses of the Parliament of Australia; it is the lower house; the upper house is the Senate. Members of Parliament serve for terms of approximately three years....
from 1990 to 2009, representing the Division of Higgins
Division of Higgins
The Division of Higgins is an Australian Electoral Division in Victoria.The division was created in 1949 and is named after Justice H. B. Higgins , who was a Victorian Member of the legislative assembly , president of the Carlton Football Club , Australian Member of Parliament , and justice of the...
. He also served as the Deputy Leader of the Liberal Party
Liberal Party of Australia
The Liberal Party of Australia is an Australian political party.Founded a year after the 1943 federal election to replace the United Australia Party, the centre-right Liberal Party typically competes with the centre-left Australian Labor Party for political office...
from 1994 to 2007.
On 18 September 2008, Costello was appointed to the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
's new Independent Advisory Board (IAB) to provide advice on anti-corruption measures.
Early life
Costello was born in Melbourne into a middle class family of practising Christians. He was the second of three children: his elder brother, Tim CostelloTim Costello
Timothy Ewen Costello AO is a prominent Baptist minister and current CEO of World Vision Australia.He is an "Australian Living Treasure". He is the brother of former treasurer of Australia and Federal Member for Higgins Peter Costello....
, is a prominent Baptist
Baptist
Baptists comprise a group of Christian denominations and churches that subscribe to a doctrine that baptism should be performed only for professing believers , and that it must be done by immersion...
minister and current CEO of World Vision
World Vision
World Vision, founded in the USA in 1950, is an evangelical relief and development organization whose stated goal is "to follow our Lord and Saviour Jesus Christ in working with the poor and oppressed to promote human transformation, seek justice and bear witness to the good news of the Kingdom of...
Australia. Costello was educated at Carey Baptist Grammar School
Carey Baptist Grammar School
Carey Baptist Grammar School is an independent, co-educational, Christian, international, day school consisting of four campuses in Victoria, Australia - Kew , Donvale , the Carey Sports Complex in Bulleen and an outdoor education camp near Paynesville in eastern Gippsland called Carey...
and attended Melbourne's Monash University
Monash University
Monash University is a public university based in Melbourne, Victoria. It was founded in 1958 and is the second oldest university in the state. Monash is a member of Australia's Group of Eight and the ASAIHL....
, where he graduated in arts and law.
During the 1980s, Costello was a solicitor at the law firm Mallesons Stephen Jaques
Mallesons Stephen Jaques
Mallesons Stephen Jaques is a commercial law firm that operates in the Asia-Pacific region. It is one of the 30 largest law firms in Australia, and is widely regarded as one of the top commercial law firms in Australia.-Offices:...
, then became a barrister and represented employers in some of Australia's best known industrial relations disputes.
In 1983 and 1984, Costello represented the National Farmers' Federation
National Farmers' Federation
The National Farmers' Federation is an Australian industry association that represents Australian farmers at a national level, including through lobbying the Australian Government...
in a case against the Australasian Meat Industry Employees Union
Australasian Meat Industry Employees Union
The Australasian Meat Industry Employees Union, better known as the Meatworkers Union, is an Australian trade union, registered with the AIRC and affiliated to the Australian Council of Trade Unions. The AMIEU was formed in 1906 as the Federated Butchers Union, and changed its name to the AMIEU in...
(AMIEU). The AMIEU was seeking a unit tally system to be set up in abattoirs in the Northern Territory
Northern Territory
The Northern Territory is a federal territory of Australia, occupying much of the centre of the mainland continent, as well as the central northern regions...
. The dispute focussed on one abattoir Mudginberri which chose to fight the AMIEU claim. Ultimately the AMIEU claim was unsuccessful.
Costello became counsel to organisations representing small business
Small business
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships...
and rose to prominence in the 1985 Dollar Sweets
Dollar Sweets dispute
The Dollar Sweets dispute in 1985 was a small industrial dispute with major legal ramifications in industrial relations where an employer resorted to a common law verdict and damages in a case in the Supreme Court of Victoria to resolve a dispute after industrial courts proved ineffective...
case, as junior counsel assisting Alan Goldberg QC, successfully representing a confectionery company involved in a bitter industrial dispute.
Political background
Balaclava, Victoria
Balaclava is a suburb of Melbourne, Victoria, in Australia. It is situated in the south-east of the city in the St Kilda East area and is bounded by Inkerman Street to the north, Chapel Street to the west, Hotham Street to the east and Oak Grove and Los Angeles Court to the south. In terms of its...
Branch of Australian Young Labor
Australian Young Labor
Australian Young Labor is the youth wing of the Australian Labor Party. All ALP members aged under 26 are automatically members. Australian Young Labor is the peak youth body within the ALP. It represents about 9500 members in every state and territory in Australia...
. In 1977, Costello was assaulted by a left-wing student politician, receiving mainstream media attention for the first time in his career as a result.
After graduating, Costello became more conservative but retained liberal views on some social issues. In 1984 he was a founding member of the H. R. Nicholls Society
H. R. Nicholls Society
The H.R. Nicholls Society is an Australian think tank of the New Right on industrial relations. It was created in March 1986 after John Stone, Peter Costello, Barrie Purvis, and Ray Evans organised a seminar aimed at discussing the Hancock Report and other industrial matters.The Society is named...
, a think tank
Think tank
A think tank is an organization that conducts research and engages in advocacy in areas such as social policy, political strategy, economics, military, and technology issues. Most think tanks are non-profit organizations, which some countries such as the United States and Canada provide with tax...
on industrial relations. In the late 1980s, he was identified as part of the New Right
New Right
New Right is used in several countries as a descriptive term for various policies or groups that are right-wing. It has also been used to describe the emergence of Eastern European parties after the collapse of communism.-Australia:...
movement, which was organised to some extent in the H. R. Nicholls Society.
Early political career
In 1990, having defeated the sitting Liberal member Roger ShiptonRoger Shipton
Roger Francis Shipton, OAM was an Australian politician. In 1975 he succeeded former Prime Minister Sir John Gorton as the Liberal Party member of the Australian House of Representatives for the Division of Higgins...
in a preselection ballot for the safe Liberal electorate of Higgins
Division of Higgins
The Division of Higgins is an Australian Electoral Division in Victoria.The division was created in 1949 and is named after Justice H. B. Higgins , who was a Victorian Member of the legislative assembly , president of the Carlton Football Club , Australian Member of Parliament , and justice of the...
, Costello entered the House of Representatives
Australian House of Representatives
The House of Representatives is one of the two houses of the Parliament of Australia; it is the lower house; the upper house is the Senate. Members of Parliament serve for terms of approximately three years....
at the age of 32. Costello made his maiden speech in May 1990 and mentioned "government should be subservient to the citizen; the Executive accountable to the representative parliament; and the monopoly give way in the face of the individual." He was immediately promoted to the Opposition front bench and proved an effective debater against the Labor government of Bob Hawke
Bob Hawke
Robert James Lee "Bob" Hawke AC GCL was the 23rd Prime Minister of Australia from March 1983 to December 1991 and therefore longest serving Australian Labor Party Prime Minister....
and Paul Keating
Paul Keating
Paul John Keating was the 24th Prime Minister of Australia, serving from 1991 to 1996. Keating was elected as the federal Labor member for Blaxland in 1969 and came to prominence as the reformist treasurer of the Hawke Labor government, which came to power at the 1983 election...
. By 1992 he was shadow Attorney-General, and in 1993 he became shadow Finance Minister under Dr John Hewson
John Hewson
John Robert Hewson AM is an Australian economist, company director and a former politician. He was federal leader of the Liberal Party of Australia from 1990 to 1994 and led the party to defeat at the 1993 federal election.-Early life:...
.
Hewson's shock defeat at the 1993 election brought Costello into consideration as a leadership contender. When Hewson was deposed as Liberal leader in May 1994, Costello supported Alexander Downer
Alexander Downer
Alexander John Gosse Downer is a former Australian Liberal Party politician who was Foreign Minister of Australia from March 1996 to December 2007, the longest-serving in Australian history...
for the leadership, becoming his Deputy Leader and shadow Treasurer. However, in January 1995, Downer resigned. Costello did not seek the leadership, instead supporting John Howard
John Howard
John Winston Howard AC, SSI, was the 25th Prime Minister of Australia, from 11 March 1996 to 3 December 2007. He was the second-longest serving Australian Prime Minister after Sir Robert Menzies....
. It was revealed in July 2006 that this was due to a December 1994 meeting between Howard, Costello and Ian McLachlan
Ian McLachlan
Ian Murray McLachlan AO is an Australian landowner, former first-class cricketer, and former member of the Australian House of Representatives.-Early life:...
during which Howard allegedly agreed to stand aside after one and a half terms as Prime Minister in return for Costello's agreement not to challenge for the leadership. Howard denied that this was a formal arrangement.
As Deputy Leader until 2007, he was the longest serving in that role, achieving that status in 2006 after breaking the record of the party's first Deputy Leader Sir Eric Harrison
Eric Harrison
Sir Eric John Harrison KCMG KCVO was an Australian politician who became the first Deputy Leader of the Liberal Party of Australia....
.
Federal Treasurer (1996–2007)
The Liberal/National coalition headed by John Howard won the 1996 election, defeating LaborAustralian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...
's Paul Keating
Paul Keating
Paul John Keating was the 24th Prime Minister of Australia, serving from 1991 to 1996. Keating was elected as the federal Labor member for Blaxland in 1969 and came to prominence as the reformist treasurer of the Hawke Labor government, which came to power at the 1983 election...
, and Costello became Federal Treasurer at age 38. He oversaw the return to and maintenance of federal budget surpluses, which enabled significant reduction in government debt. Inflation, interest rates and unemployment all fell and remained generally low during Costello's term as Treasurer, although average household debt more than doubled. Inflation and interest rates crept up toward the end, with the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
describing his last budgets as "inflationary".
Tax reform became a major policy focus for Costello. Although John Howard had promised during the 1996 election campaign that he would "never, ever" introduce a GST, it returned as Liberal Party policy for the 1998 election. It was passed through the Senate
Australian Senate
The Senate is the upper house of the bicameral Parliament of Australia, the lower house being the House of Representatives. Senators are popularly elected under a system of proportional representation. Senators are elected for a term that is usually six years; after a double dissolution, however,...
with the help of the Australian Democrats
Australian Democrats
The Australian Democrats is an Australian political party espousing a socially liberal ideology. It was formed in 1977, by a merger of the Australia Party and the New LM, after principals of those minor parties secured the commitment of former Liberal minister Don Chipp, as a high profile leader...
. Until July 2005, Costello's own agenda of labour market deregulation remained blocked by the government's lack of a Senate majority.
In 1998, Costello and his wife Tanya, along with Tony Abbott
Tony Abbott
Anthony John "Tony" Abbott is the Leader of the Opposition in the Australian House of Representatives and federal leader of the centre-right Liberal Party of Australia. Abbott has represented the seat of Warringah since the 1994 by-election...
and his wife Margaret, successfully sued author Bob Ellis
Bob Ellis
Bob Ellis is an Australian writer, journalist, film-maker and political commentator. He was a student at the University of Sydney at the same time as other notable Australians including Clive James, Germaine Greer, Les Murray, John Bell, Ken Horler, and Mungo McCallum...
for false statements he made about them in his book Goodbye Jerusalem.
Costello advocated for change to a republic at the Australian Constitutional Convention 1998
Australian Constitutional Convention 1998
The Australian Constitutional Convention 1998 was a Constitutional Convention which gathered at Old Parliament House, Canberra from 2–13 February 1998. It was called by the Howard Government to discuss whether Australia should become a republic...
. He rejected any suggestion that Australia was not already an independent nation and said that the Australian Constitution works "remarkably well". It was the institution of monarchy that was the crux of his argument for change:
Costello supported the 1999 referendum
Australian republic referendum, 1999
The Australian republic referendum held on 6 November 1999 was a two-question referendum to amend the Constitution of Australia. The first question asked whether Australia should become a republic with a President appointed by Parliament following a bi-partisan appointment model which had...
on whether Australia should become a republic
Republicanism in Australia
Republicanism in Australia is a movement to change Australia's status as a constitutional monarchy to a republican form of government. Such sentiments have been expressed in Australia from before federation onward to the present...
. However, he has also stated, at a Liberal and National Party gathering in 1992 in company with John Sharp MP, that he would support an Australia-based system of constitutional monarchy, in which a member of the House of Windsor would be invited to relocate to Australia and serve as the monarch of Australia, in place of the current system in which the crowns of Australia and the United Kingdom are both held by the same individual.
After the 2001 election, he attracted criticism for not securing funding for a key election promise to extend the Medicare safety net.
In February 2006, Costello caused controversy during a lecture at the Sydney Institute
Sydney Institute
The Sydney Institute, founded in 1989, is a privately funded, conservative, Australian current affairs forum. The Sydney Institute took over the resources of the Sydney Institute of Public Affairs which ceased activity in the late 1980s...
when questioned about the government's refusal to legally recognise same-sex marriage. He stated, "I think we do recognise the rights of gay and lesbian people in Australia. We do not criminalise [their] conduct or behaviour." He also pointed out that the law was changed in 2004 to recognise same-sex couples with regards to superannuation. He stated that marriage should only be recognised between heterosexual
Heterosexuality
Heterosexuality is romantic or sexual attraction or behavior between members of the opposite sex or gender. As a sexual orientation, heterosexuality refers to "an enduring pattern of or disposition to experience sexual, affectional, physical or romantic attractions to persons of the opposite sex";...
couples. Also during the same speech, Costello criticised "mushy misguided multiculturalism
Multiculturalism
Multiculturalism is the appreciation, acceptance or promotion of multiple cultures, applied to the demographic make-up of a specific place, usually at the organizational level, e.g...
," warning immigrants that the acceptance of Australian values was "not optional."
Under Howard
During the 2004 election campaign, Howard avoided saying whether he would serve a full term if re-elected, saying only he would remain as long as his party supported him. The government's subsequent success in winning control of the Senate
Australian Senate
The Senate is the upper house of the bicameral Parliament of Australia, the lower house being the House of Representatives. Senators are popularly elected under a system of proportional representation. Senators are elected for a term that is usually six years; after a double dissolution, however,...
raised further speculation that Howard would delay his retirement, and the prospect of a Costello leadership succession appeared to recede.
In July 2006, the alleged Costello/Howard succession deal was made public by Ian McLachlan. Costello confirmed the incident had occurred and that he shared McLachlan's interpretation of events. Howard denied the claims repeatedly, stating the continued public drama displayed "hubris and arrogance" and that the leadership was the party room's to decide, not a prize to be handed over by leaders to successors.
Press Gallery columnist Michelle Grattan
Michelle Grattan
Michelle Grattan AO , Australian journalist, was the first woman to become editor of an Australian metropolitan daily newspaper. Specialising in political journalism, Grattan has written and edited for many significant Australian newspapers....
described Costello's actions :
Despite tensions between the Prime Minister and the Treasurer, nothing further came of those events. Neither Howard nor Costello took any action to remove the other from office, or resign. However, on 12 September 2007, amid renewed leadership tensions and a series of unfavourable public polls, Howard confirmed he would step aside well into the next term, if re-elected, and that Costello would be his "logical successor".
A federal election was held on 24 November 2007. An exit poll
Exit poll
An election exit poll is a poll of voters taken immediately after they have exited the polling stations. Unlike an opinion poll, which asks whom the voter plans to vote for or some similar formulation, an exit poll asks whom the voter actually voted for. A similar poll conducted before actual...
of 2,787 voters by Auspoll, commissioned by Sky News, included a question on the statement "I don’t want Peter Costello to become Prime Minister". Fifty-nine per cent agreed, while 41 per cent disagreed. The Coalition
Coalition (Australia)
The Coalition in Australian politics refers to a group of centre-right parties that has existed in the form of a coalition agreement since 1922...
lost the election.
In opposition
Costello was widely expected to assume the Liberal leadership after the 2007 election, but the day after the election, in a surprise announcement, he said that he would not seek or accept the leadership or deputy leadership of the Liberal Party. This was after John Howard, in his concession speech on the night of the election, specifically endorsed Costello as the next leader for the Coalition. A week later, he indicated that he would be unlikely to serve out in full his parliamentary term of three years.However, as former opposition leader Brendan Nelson
Brendan Nelson
Dr Brendan John Nelson is a former Australian politician and former federal Opposition leader. He served as a member of the Australian House of Representatives from the 1996 federal election until 19 October 2009 as the Liberal member for Bradfield, a northern Sydney seat...
struggled, speculation mounted that Costello would change his mind and seek the leadership. In August 2008, he ruled out challenging Nelson, but did not comment on the prospect of Nelson stepping aside in his favour.
Finally in September 2008, just before the release of his memoirs, The Costello Memoirs
The Costello Memoirs
The Costello Memoirs is a collection of writings by Australian politician and long-standing treasurer Peter Costello and co-authored by former politician and Costello's father-in-law, Peter Coleman...
, Costello specifically re-confirmed that he would not be seeking leadership of the party and would leave politics at a time that suited him. Media attention immediately shifted to whether Costello's decision cleared the way for a leadership challenge by opposition leader Malcolm Turnbull
Malcolm Turnbull
Malcolm Bligh Turnbull is an Australian politician. He has been a member of the Australian House of Representatives since 2004, and was Leader of the Opposition and parliamentary leader of the Liberal Party from 16 September 2008 to 1 December 2009.Turnbull has represented the Division...
(shadow treasurer at the time). Former fellow Minister Tony Abbott
Tony Abbott
Anthony John "Tony" Abbott is the Leader of the Opposition in the Australian House of Representatives and federal leader of the centre-right Liberal Party of Australia. Abbott has represented the seat of Warringah since the 1994 by-election...
described the decision as a great loss to Australia and to Costello himself, who might continue to have regrets for the rest of his life at what might have been. Media outlets capitalised on Costello's failure to categorically rule out any future leadership challenge. An incumbent-announced leadership spill
Liberal Party of Australia leadership election, 2008
An election for the leadership of the Liberal Party of Australia was held on 16 September 2008. The successful candidate was Malcolm Turnbull who defeated former leader Brendan Nelson...
on the morning of Costello's book release saw Turnbull defeat Nelson. Costello under Turnbull remains unwilling to rule out ever leading the Liberal Party. Costello remained as an opposition backbencher. On 18 September 2008, Costello was appointed to the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
’s new Independent Advisory Board, (IAB), which will provide advice on anti-corruption measures.
On 15 June 2009, Costello announced that he would retire from Parliament at the next Federal election. However on 7 October 2009, Costello announced he would be resigning from Parliament when it resumed later in the month. He resigned on 19 October 2009, triggering the 2009 Higgins by-election
Higgins by-election, 2009
A by-election was held for the Australian House of Representatives seat of Higgins on 5 December 2009. This was triggered as a result of the resignation of former Treasurer and former Liberal Party deputy leader Peter Costello...
.
Post-political career
Costello has been appointed as a director of the Australian Government Future FundAustralian Government Future Fund
The Australian Government Future Fund is an independently managed investment fund into which the Australian Government deposits its budget surplus. The purpose of the fund is to meet the government's future liabilities for the payment of superannuation to retired civil servants of the Australian...
's Board of Guardian, and commenced this role in December 2009. He is also a managing partner of BKK Partners
BKK Partners
BKK Partners is a boutique investment bank that provides corporate advisory services including mergers and acquisitions, capital markets and strategic consulting. The firm was founded in 2009 by former Goldman Sachs JBWere bankers Alastair Walton, Andrew Stuart and John Anderson...
, a boutique corporate advisory run by former Goldman Sachs JBWere
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
managers. He also chairs the advisory board of specialist corporate advisory firm ECG Advisory Solutions.
Costello also writes a regular column for Fairfax newspapers.
In October 2010, controversy resurfaced with the publishing of Howard's memoirs, regarding the incident. Former Liberal leader Dr John Hewson
John Hewson
John Robert Hewson AM is an Australian economist, company director and a former politician. He was federal leader of the Liberal Party of Australia from 1990 to 1994 and led the party to defeat at the 1993 federal election.-Early life:...
said Costello "never had the balls to challenge Howard."
Honours
Peter Costello was appointed a Companion of the Order of AustraliaOrder of Australia
The Order of Australia is an order of chivalry established on 14 February 1975 by Elizabeth II, Queen of Australia, "for the purpose of according recognition to Australian citizens and other persons for achievement or for meritorious service"...
, Australia's highest civilian honour, on 26 January 2011.
External links
- Parliament Site
- Petter Costello – Official Website (www.petercostello.com.au)
- Biography – Monash UniversityMonash UniversityMonash University is a public university based in Melbourne, Victoria. It was founded in 1958 and is the second oldest university in the state. Monash is a member of Australia's Group of Eight and the ASAIHL....
prominent alumni profile