Telstra is trying to leave two-thirds of its workforce on Australian Workplace Agreements indefinitely. If successful, thousands of the telco’s employees will be employed under John Howard’s individual contract regime well into a second term of the Rudd government - and beyond.

Senior Liberals said the schedule for an announcement from the former treasurer in September, after the release of his memoirs, was too far off and must be changed. By staying silent, Mr Costello was allowing speculation to build and create its own political momentum.

It has been reported that Peter Costello, the former treasurer, is waiting to be drafted to the leadership to avoid a tussle between current Opposition Leader Brendan Nelson and Opposition treasury spokesman Malcolm Turnbull.