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CANBERRA – The Australian Labor party (ALP) has questioned if Prime Minister John Howard has overruled Treasurer Peter Costello on whether the government will allow an A$11 billion ($12.4 billion) takeover bid for Qantas to go ahead.
The Australian Financial Review reported today that Mr Howard had dismissed pressure from his own backbench to block the bid.
Mr Howard was said to be refusing to act, warning there would be a "savage reaction" from the business community if he interfered in the airline's management.
It was not for his government to dictate how shareholders chose to sell their private property, he said.
Airline Partners Australia consortium -- led by major investment bank Macquarie Bank -- has offered A$11.1 billion for the airline.
The bid, backed by the Qantas board, is now being examined by the Foreign Investment Review Board because some of the consortium's members are North American private equity groups.
The board is due to report to Mr Costello by March 7.
"What we would like to know is, has the Prime Minister overruled the Treasurer?" asked Labor treasury spokesman Wayne Swan in Canberra today.
"As far as we were aware, the treasurer was examining this takeover plan from Airline Partners and he was going to report back to the Australian people with his conclusions.
"So it seems strange this morning that the prime minister would be on the front page of the paper declaring the deal a done deal, what's the answer to that? Has he overruled the Treasurer?"
- AAP
