MULTIMEDIA: Annabel Crabb on Peter Costello's life and times. --------------------------------------------- But his decision will be a relief to Malcolm Turnbull, whose leadership has been dogged by constant rumour that Mr Costello was stalking him. Mr Costello will serve out the remainder of the term on the backbench, where he moved after declining the leadership at the last election. "I will continue to be involved in public policy - particularly at the international level - through my engagement on the International Advisory Board of the World Bank,'' he said.

"I would like to thank my constituents and the electors of Higgins for the privilege of representing them in seven Commonwealth Parliaments. Three of those terms have been in Opposition and four in Government.'' Mr Costello said many of his constituents and other Australians had urged him to continue in federal politics. "Nevertheless my view is that it is time to pursue other interests,'' he said, adding that was his view after the coalition lost the 2007 federal election. That loss brought to an end Mr Costello's 11 year reign as the nation's treasurer. Mr Costello wished federal Liberal leader Malcolm Turnbull and his deputy Julie Bishop well and "every success'' at the next election.

He also paid tribute to former leader Brendan Nelson. Mr Costello, considered heir apparent to former prime minister John Howard, opted not to seek the party leadership after the 2007 election. Mr Turnbull used parliament to praise Mr Costello's contribution to the nation, saying he stood on the side of freedom and enterprise. "Peter Costello for his years in this parliament - 20 years - has stood on the side freedom and enterprise," Mr Turnbull told parliament on Monday. "He has served our nation well, we salute him and thank him for service."

Prime Minister Kevin Rudd said it was an important day for Mr Costello. "It should be marked appropriately,'' he told parliament, praising the former treasurer for his significant role in the formation of the G20 finance ministers group. He also acknowledged Mr Costello's role in addressing the Asian financial crisis, adding it had helped Australia's relationships with its neighbours. "They were correct decisions in the national interest.'' Mr Rudd described Mr Costello's career in public life as "quite extraordinary'' and wished he and his family well for the future.

Mr Costello thanked both Mr Turnbull and Mr Rudd for their thoughts, saying he didn't think he would see the day when both sides of the parliament would say nice things about him. "It is just possible both sides of the dispatch box are happy with the announcement I've made,'' he said. "It is a very nice thing to actually come here and not be quite departed and hear the kind of speeches one hears as eulogies. In fact, I might come back tomorrow, I'm enjoying it so much.''

with AAP

