McGauran set to quit, Costello tipped to linger

FORMER agriculture minister Peter McGauran is expected to quit parliament within a week or two to take up a top position in Australia's multi-billion-dollar bloodstock industry.

But Peter Costello is expected to delay his departure for several months, denying Opposition Leader Brendan Nelson his preferred "Super Saturday" of synchronised by-elections.

Whispers that Mr Costello's departure might be imminent circulated yesterday when it became known he would address his local electorate council in Melbourne on Thursday. But while Mr Costello will give his analysis of the party's federal defeat at the meeting, he is not expected to announce his resignation.

However, his close friend Mr McGauran is believed to have decided not to delay, and is tipped to become chief executive of Thoroughbred Breeders Australia, which represents racehorse breeders including some of the nation's most prestigious studs.

A keen racing fan and one-time racetrack steward, Mr McGauran liaised closely with the thoroughbred industry, including TBA president and Arrowfield Stud boss John Messara, during last year's equine flu crisis.

Mr Messara, whose stud stands star stallion Redoute's Choice, would not comment on the prospects of Mr McGauran taking the chief executive's role.

And Mr McGauran, 52, refused to confirm he was considering the job. "I have strong links with the horse industry but no position," he said.

But the long-time Nationals MP effectively flagged his departure in a largely unnoticed speech in federal parliament this month in which he somewhat unusually used a response to a government transport bill to thank his wife and parents and pay tribute to his local constituents.

"Nobody represents a large rural electorate, with the same intensity and demands of a geographically smaller metropolitan area, without the support of parents, family and extended family. I will be eternally grateful for the confidence and support vested in me by the people of Gippsland," he said.

The speech effectively confirmed he would not be returning to parliament when it resumes in May for the federal budget.

Mr McGauran, who spent about 10 years in the ministry, will leave parliament with a pension of $235,000 a year or a lump sum of $2.35 million and an annual pension of $117,000.

Mr Costello is believed to be staying on for now. There has been speculation that he may reverse his decision to quit, but sources say he will leave later in the year.

His office appeared to play down a resignation at this week's meeting, saying: "He will report on the recent election and the result in Higgins, where the swing to Labor was 1.7 per cent compared with a national swing of 5.44 per cent."

The staggered by-elections pose yet another problem for Dr Nelson, who made it clear his preference was for the polls to be held simultaneously.

Retaining Gippsland in conservative hands - the Liberals plan to stand a candidate too - will not be easy given the 6 per cent margin and the fact it includes tracts of the staunchly blue-collar Latrobe Valley. Higgins, which contains Toorak and Malvern, is strong Liberal territory although there has been an influx of younger voters.

Mr McGauran and Mr Costello kept the swing against them at last year's poll to 1.7 per cent, probably because of their personal following.