TREASURER Peter Costello has directly contradicted Prime Minister John Howard, saying Mr Howard promised to hand over the Liberal leadership midway through his second term in office.
Mr Costello said today that during a meeting with Mr Howard, witnessed by former defence minister Ian McLachlan, in December 1994, Mr Howard asked him not to stand for the Liberal Party leadership. "... He did not want a vote in the party room," Mr Costello said in Melbourne.
"He told me that he intended to do one-and-a-half terms as prime minister and then would hand over.
"I did not seek that undertaking, he volunteered and I took him at his word.
"Obviously that did not happen."
Advertisement: Mr Costello said today that Mr Howard and Mr McLachlan sought the meeting with him in December 1994.
He said he did not seek the meeting nor did he seek the undertaking given.
But he said Mr McLachlan's account of the meeting was true.
Mr Howard earlier today denied any deal had ever been made.
