PETER COSTELLO'S attack on Tony Abbott's parental leave policy has been universally condemned by his former colleagues who suggested the former treasurer had given up his chance to lead the party and should therefore butt out.
The government was buoyed by the attack, claiming it blew a hole in the Coalition's economic credibility.
''He's also saying in effect that Tony Abbott can't be trusted on the economy,'' the Prime Minister, Kevin Rudd, said.
The Treasurer, Wayne Swan, described Mr Abbott as ''a miracle worker''. ''He has united Peter Costello and Paul Keating. Nobody has ever succeeded in doing that before. They both think this is the dumbest idea they have ever seen.''
In his Herald column yesterday, Mr Costello carpeted Mr Abbott's policy promise to increase company tax for the nation's 3200 biggest firms to fund a $2.7 billion annual parental leave scheme that would pay primary carers at their full salary for six months, capped at an annual salary of $150,000.
Mr Costello, echoing the private thoughts of many Liberals, said it was a silly idea that would reduce the global competitiveness of Australian business and one which contravened the Liberal philosophy of low taxes.
He also criticised Labor's proposal for the states to surrender 30 per cent of their GST revenue to fund Mr Rudd's new hospital reform plan. ''It's hard to know which idea is worse,'' he said.
Mr Abbott refused to be drawn into a slanging match with Mr Costello, saying his fight was with Mr Rudd and ''no one else''.
However, his colleagues, both publicly and privately, lined up to have a swing at Mr Costello for what they considered an unprovoked attack designed to cause damage just as the Coalition was unified and disciplined and travelling well in the polls. ''The point is that Peter is no longer a policymaker,'' said Sharman Stone, the opposition spokeswoman responsible for the policy.
The opposition finance spokesman, Barnaby Joyce, said the outburst was a product of frustration. ''Peter is entitled to ventilate his views … And I suppose there's a lot of people once they leave the political environment after a long period of having their views subjugated by the cabinet, or subjugated by other dominant figures close to them … that when they get out they enjoy the cathartic experience of exploding,'' he said.
Another opposition spokesman was mildly defensive, saying Mr Costello ''generally thinks it was just a bad policy''.
''He spent his whole time here trying to reduce taxes and company taxes,'' he said.
However, Liberals were sniping privately that it was Mr Costello who, in 1996, introduced the superannuation surcharge for high-income earners to help balance the budget. This was badged as a temporary ''levy'' but stayed in place until 2005, long after the budget was balanced.
Another MP said the former treasurer was getting square. ''He thinks Abbott should have tapped Howard on the shoulder and he didn't,'' he said.
Whatever the motive, one of Mr Costello's former cabinet colleagues, was angry: ''He would know more than anyone the effect of what he said would have.''
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