This whole thing is ridiculous
The media are playing it soooooo hard.
For one there has been internal tension regarding the leadership for the last few years, not as of the day Glenn Milne reported it. Their professional relationship realistically will remain unchanged. Costello is a bit annoyed, and anxious about the whole thing, as he has been for a long time now. Just because the pair (Howard and Costello) were forced to comment on the leak, does not mean all that much. Of course their conflicting views on the nature of the agreement has come up many times before now and it is ridiculous to think that just because it has become public, that suddenly their working relationship has changed.
The only problem with this whole situation is that it has put their tension into the public spotlight. The rather regular statements of "no comment" were effective. They got the media off their back, and the issue which was purely an internal one, was dealt with behind closed doors.
Costello has not handled this issue professionally. He should have simply said something along the lines of "any talks or agreements made regarding the leadership are a matter of the prime minister and myself". Costello is niave to think that he has some kind of right to the leadership simply because of a discussion made before Howard was leader, and before he was even Prime Minister. Not only is John Howard the most successfull Liberal prime minister since Robert Menzies (and some say even more successful) but he is by far the best man for the job from the perspective of the Liberal Party. He is experienced, has a repore with the leaders of the world, and most importantly is one of the most popular prime ministers we have ever had.
Howard has it right to say that the leader of the party is a decision that needs to be made by his 100 parliamentary colleagues. Whilst realistically Howard would be handing over the leadership by resigning; where he is still willing to be leader, and where he has overwhelming support by the nation and those 100 colleagues - Howard is under no obligation to resign to the bequest of a so so, barely there agreement made in a totally different context.
I hope John Howard fights a 5th term, and makes sure that the IR laws are secure. Whilst I feel that Costello is entitled to his day; where he is not the best candidate for the job, and where John Howard is still passionate about his job, he should remain leader.