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I am not surprised that Howard made such a comment in order to secure a peaceful return to the leadership. Times do change, and Howard turned from a weak Prime Minister to one of Australia's most successful and popular politicians. At the start of his leadership, Costello very much was in a position of power, threating to Howard with his ambition and heir-apparant status. Two terms later, Howard ruled the Coalition with an iron fist, while Costello had been reduced, his standing much weakened due to Howard's success.
The interesting element to this story is not that a deal was made, but that Costello has undercut Howard today. Howard now looks to be dishonest, and the Costello camp finally seems to be regaining momentum. I do not believe for a moment that Howard will step aside or be challenged before the next election, but believe Costello is seeking to guaruntee a swift hand over of power shortly after the election.
Establishing an alternate agenda for the future, becoming more Prime Ministerial and less Treasurer - Costello is definetly building the foundation to his platform for the leadership.
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