On Monday the dollar reached US51.95 cents, an eight-week high. At the press conference, a clearly uncomfortable Costello took pains to insist that he had made his decision on the basis of economic considerations alone, with the sole aim of guaranteeing the maximum return to Australia. Capitulation to political pressure was simply not a factor, and Howard had wielded no influence. Costello emphasised that the government remained firmly pro-foreign investment. Australia has a very liberal foreign investment regime.
International investors know that.
Since the announcement, both Howard and Costello have continued to insist that the Prime Minister played no role in the decision-making process. Legal questions are involved, because if Shell could demonstrate that he influenced the outcome, it would provide them with grounds to sue. Labor Party divided The sharp divisions within the Liberal Party, expressed in at least one fiery party-room conflict before the decision was taken, were mirrored in the opposition Labor Party. Labor's shadow Treasurer, Simon Crean, on the other hand, refused to indicate either way, while WA's new Labor Premier Geoff Gallop was delighted, even trying to take some of the credit for Costello's decision. Reactions in the press were also divided.