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Costello caught out on leadership comments

By Michael Brissenden for the 7.30 Report

Federal Treasurer Peter Costello continues to deny he said he would destroy Prime Minister John Howard's leadership if he was not prepared to step aside, despite telling journalists at a dinner of his challenge plans.

The Treasurer today started his 50th birthday with a breakfast television interview on the Nine network where he was asked directly about comments he had reportedly made to supporters back in 2005 declaring that he could win the next election but Mr Howard could not.

Mr Costello denied the quote, point blank.

In another television interview later in the day, the question was repeated, this time with an assertion that several people had been present when Mr Costello had declared that Mr Howard could not win the next election, and again Mr Costello denied it categorically.

In fact, there was a dinner back in early 2005 in Canberra with Mr Costello and three senior Canberra gallery journalists, one of whom was ABC political editor Michael Brissenden.

The notes of that dinner conversation record Mr Costello saying he would destroy Mr Howard's leadership if he was not prepared to step aside within a year.