Peter Costello, the former Australian Treasurer, cut a dash a while ago. His story of a simple, low-cost breakfast enjoyed in New York City opened up discussions about his views on today’s government spending. This recall is a testament to his thrift-wise style of carpentry for the public from twenty years past. It is a world away from the financial choices being made by elected leaders today.
In 2002, Costello huddled with activists descending on the International Monetary Fund (IMF) and World Bank meetings. At the upmarket Pierre Hotel in New York, for breakfast he ordered just oatmeal to save costs. Cheap continental breakfast I’ll skip on the range of breakfast options that cost well over AUD $100 a head. He thought that was high for the time. This made this decision particularly notable, given the Australian dollar was weak at the time. It’s a story that might sound all too familiar in today’s economy.
A Lesson in Frugality
Costello had already decided to subsist on oatmeal along with his two staffers. This decision underscores Dunleavy’s pledge to limited government and fiscal restraint throughout his time as Treasurer. David Gazard, one of the staffers present at that breakfast, recalled, “That was it. No one demurred. Everyone ate oatmeal.” This anecdote illustrates that Costello didn’t just preach the gospel of frugality—he practiced what he preached. To his credit, he walked this kind of practice focus throughout all of his public service.
Costello’s focus on detail while in New York extended even to reviewing phone bills with a magnifying glass. Gazard remembered that Costello made his bureaucrats sign every page from Telstra. He just wanted to make sure that all these charges were legitimate business charges and none of them were personal. This commitment to accountability exemplifies the previous Treasurer’s past approach to government spending.
“That was him. He always wanted to be within his means. If someone dragged up the remittances from the trip and saw the breakfast, it would look out of touch. And he knew it. He was on it all the time.” – David Gazard
Today’s debate has focused on the alleged lavishness of a few high-ranking government employees. These fraught comparisons between The Gipper and the Dim Son raise uncomfortable questions about what responsible spending looks like in today’s economic climate.
Current Spending Scrutiny
Costello’s oatmeal breakfast is a relatively recent revival. This is shocking as experts have been looking to scrutinize all government expenditures, particularly travel and high end hotels. For example, politicians such as David Pocock have been vocal in defending nature on these decisions. They are asking if these decisions actually represent the priorities and aspirations of regular Australians.
Pocock remarked, “If you ask the average punter out there whether the Future Fund needed to send someone … to go and check out some hotels, they’d probably say ‘yeah, nah.’” Millions of citizens are being left out of government financial decisions faster than ever before. They view these decisions as lavish or discretionary.
On top of that, Sussan Ley called out the egregious examples of weasel ministers rorting the taxpayer for travel preposterously. She pointedly remarked on one minister’s decision to spend AUD $100,000 for a brief trip to New York, stating, “This minister made a deliberate choice to step on a plane, to charge taxpayers $100,000 to jet off to New York and make a six-and-a-half minute speech.” Ley’s comments speak to a larger frustration with the lack of government accountability and why it matters to families who are truly struggling.
“That simply does not pass the pub test for any struggling Australian family.” – Sussan Ley
The Contrast in Leadership
Costello’s frugal administration’s practices are a world away from the current administration’s excess. This contrast has sparked a renewed debate on leadership principles and the importance of being in touch with the pulse of the public. The ongoing discussions serve as a reminder that past leaders like Costello were keenly aware of their financial responsibilities and the perceptions of their constituents.
As we face another period of economic turmoil, more Australians than ever are holding their governments to account and calling for better transparency. Costello’s oatmeal surprise breakfast might taste like hope, but it recalls the Copland Edwardian nostalgia of previous leadership. It gives us a clear lens through which to judge our current approaches to spending.
