howard costello implode, page-55

I've been posting about Howard losing the plot and frequently being contradicted by his ministers and here we go again;

Prime Minister John Howard is continuing to deny that a deal was made to hand the leadership to Treasurer Peter Costello, despite Mr Costello's recollection of a 1994 meeting.

Mr Costello says Mr Howard gave him an "undertaking" 12 years ago that he would hand over the top job midway through his second term.

"I did not seek that undertaking, he volunteered it," Mr Costello said.

The Treasurer's comments confirm an account of the meeting given by former defence minister Ian McLachlan.

However, Mr Howard says nothing in Mr Costello's comments alter his position that no deal was made about a leadership transition.

Mr Howard, who has issued a statement on the issue, also says he and Mr Costello have always maintained that view.

"But Mr Costello and I on a number of occasions, over the years, have denied the existence of a deal," he said.

Mr Costello says he is not accusing Mr Howard of lying.

"I'm not making any allegations against anybody," he said.

Mr Costello says he has spoken out because the public is entitled to know the truth.

Row 'unprecedented'

Federal Opposition frontbencher Kevin Rudd says the Federal Government is in "disarray".

Mr Rudd says the internal row is unprecedented in the Howard Government.

"I can't recall in the history of the Howard Government the Prime Minister and the Treasurer saying to each other that neither of them is telling the truth," he said.

"You can't have a prime minister saying of his treasurer, 'you're not telling the truth'," he said.

"You can't have a treasurer saying to the Prime Minister, 'you're not telling the truth'."

But Federal Liberal MP Bronwyn Bishop has strongly backed Mr Howard after Mr Costello's revelations.

"The way we have leaders to lead the country - it's not a gift to give, people have to earn the leadership and then they have to be voted into it," she said.

"So what we are talking about here is what is good for the country and in my view the Prime Minister must stay."

Dave R.