Peter Costello's to blame for the leadership crisis tearing the party apart

The federal Liberal Party is in an unprecedented crisis.

At no time in the 65-year history of the Liberals or any of their predecessors has a leader been confronted with such a walkout of his own front bench as occurred last week with Malcolm Turnbull.

Never before has a Liberal leader gone so public to attack members of his own party rather than his Labor opponents. And never has a Liberal leader sounded so much like a Labor ideologue staking his claim by appealing to a principle of policy, in this case the emissions trading scheme, rather than the need to secure a compromised policy outcome based on political and, most importantly, practical considerations of implementation.

First, the wrong people have been appointed to the Liberal leadership too early in their careers. When that happens in any political party the results are disastrous. When it happens in a leader-centric party such as the Liberals it is catastrophic. We saw this when John Hewson became leader after the 1990 election. His ideologically based Fightback program resulted in the Liberals losing the "unlosable" 1993 federal election.

Second, the Liberal Party is on the verge of selecting its third federal parliamentary leader in less than two years because the person who should have taken the baton from John Howard after the 2007 election defeat, Peter Costello, declined to do so.

Howard had groomed a range of younger members into cabinet who had future leadership potential. Brendan Nelson had defence; Tony Abbott, health; and Joe Hockey, industrial relations. Howard appreciated these individuals might be ready for leadership in a couple of elections hence. They needed political maturing.

The immediate successor was to be Costello. He was firmly anointed as such by Howard on election night 2007.

Costello, as deputy leader and treasurer, was not just the heir apparent by default but one who was young, experienced and a proven performer. Moreover, in private comment and public outburst, Costello had indicated he had wanted the leadership. Or was it only the prime ministership?

Importantly, Howard observed on election night that "the future of our party is very tied up with Peter Costello". How prophetic this comment was because it has been Costello's behaviour since then that has been the source of the Liberals' problems.

Costello's unwillingness to take up the leadership caused problems as it resulted in the initial move to Nelson as leader.

Costello's ambivalent attitude to whether he would stay in parliament caused further leadership instability for Nelson.

It also possibly tempted Malcolm Turnbull to destabilise Nelson and take on the leadership earlier than expected.

Turnbull wanted to pre-empt Costello in case the party turned to him on the eve of the next election as Nelson faltered.

Nor did Costello's unwillingness to serve in any shadow portfolio help the Liberal cause in terms of policy renewal, attacking the Rudd government or providing advice on tactics and strategy.

What a contrast Costello was to Howard who, having been dumped as leader in 1989 for Andrew Peacock, stuck it out. After having been bypassed later by his former staff member, Hewson, stuck it out. With having been shunned in favour of Alexander Downer, kept serving the party.

Costello's unwillingness to take on the role of leader after the 2007 election has left the Liberal Party with a power vacuum that no one has been able to fill since. Nor will any of the present contenders be able to fill the yawning Liberal leadership gulf. It is as much about having real stature and political skills to bring together the disparate parts of the Liberal Party as it is about having new policy ideas.

Even Peacock was willing to take on the leadership after the 1983 election and hold together the Liberal Party so that it came close to defeating Bob Hawke in 1984. But, then again, Peacock at least had the steel to have challenged Malcolm Fraser previously for the top job.

Costello never challenged Howard and his behaviour since the 2007 election suggests that Howard was right not to step aside for his unimpeded rise to the top.