Howard in power struggle

A DRAMATIC public confrontation erupted between Australia’s prime minister and his ambitious treasurer yesterday over an alleged promise to hand over power.

Just hours after Prime Minister John Howard, 66, denied making such a promise, Treasurer Peter Costello, 48, called a news conference to say that he had.

“There was no deal made,” Mr Howard said, denying a reported account of a meeting with Mr Costello in December 1994 as the two men haggled over the leadership of the Liberal Party.

Mr Costello, apparently deciding to take the gloves off after years of sparring over the premiership and ahead of national elections due in 2007, said, however, that Mr Howard had asked him at the meeting not to stand for the party leadership.