National Observer Home > No. 60 - Autumn 2004 > Editorial Comment

Mr. Malcolm Turnbull and Mr. Peter Costello

Mr. Malcolm Turnbull has obtained pre-selection for a safe Liberal Party-held Sydney seat, and will almost certainly be a member of the House of Representatives after the Federal election later this year.

Mr. Turnbull is a highly-motivated merchant banker who was educated at Sydney Grammar School and subsequently at Brasenose College, Oxford. He obtained qualifications in law, and acted as a lawyer before becoming a merchant banker. He became a leader of the Australian republican movement, and was a prominent advocate of the republican case for the referendum which rejected that case decisively in 2001, with our constitutional monarchy thus retained.

Mr. Turnbull obtained pre-selection after a controversial campaign to eliminate the previous sitting member. Extensive machinations were conducted, with the candidates arranging large numbers of new Liberal Party members in the contested seat. The spectacle was not edifying.

After he obtained pre-selection Mr. Turnbull stated publicly that he had passed across his duties in the Australian republican movement to other members of that movement. He stated also that the 2001 referendum should be regarded as closing the issue for some considerable time.

The republic controversy ending with the 2001 referendum was unpleasantly divisive. It is appropriate to recall that the principle reason for retaining our present system is that it is relatively safe. It is difficult for Whitlam, Keating, Latham, Costello or other such politicians to manipulate the present system to their personal advantage. The Queen is fortunately remote, and her personal advisors are objective and not influenced by Australian party-politics. If, however, the Queen were replaced by a president - who would be likely often to be a retired Australian politician with all his party prejudices - improprieties could be expected. The security and safety of our present system would not remain.

It is to be hoped, therefore, that Mr. Turnbull will be true to his word and will not treat his new position as an opportunity to revive this divisive issue.

Mr. Turnbull is intensely ambitious, and it will be necessary for him to demonstrate that he can be trusted and that he is not a mere opportunist. It is certain that he will emerge as a rival to Mr. Peter Costello. In National Observer there has been a consistent view that Mr. John Howard should continue as Prime Minister until a suitable replacement can be found, and that Mr. Peter Costello is entirely unsuitable.¹ Whereas lack of character is a defect of Mr. Costello, Mr. Tony Abbott is principled, and with the passage of time may be seen as an increasingly acceptable alternative to Mr. Howard.

The ambitions and ego-centricity of Messrs. Turnbull and Costello make them natural rivals. Mr. Turnbull is markedly more intelligent than Mr. Costello, but Mr. Costello has considerable parliamentary experience. Mr. Costello might more satisfactorily for everyone have gone into the Australian Labor Party rather than into the Liberal Party. Mr. Costello cannot be relied upon to support core Liberal Party values. But can Mr. Turnbull? The latter's commercial and international experience should lead him to conclude that, for example, the maximum effective tax rate of 48.5 per cent (which is higher than in other comparable countries) should be reduced, and that the level of regulation of business and of interference with choices open to Australians should also be reduced. But if Mr. Turnbull emerges as a self-promoting opportunist there will be reason to regret his entry into the Parliament even more than the entry of Mr. Costello.

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1. See, for example, Andrew Campbell, "John Howard - Leadership and Character; Peter Costello, 'The Hollow Man'", National Observer, 2003, Number 58, pages 12-21.

National Observer No. 60 - Autumn 2004