Michael Costa
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- For the Italian-English conductor, see Michael Costa (conductor)
Michael Costa (born 15 July 1956) is an Australian politician. He currently represents the Australian Labor Party in the New South Wales Legislative Council. Living in rural NSW and commuting to his office and parliament he is a country member.
Costa was born in Newcastle to Greek Cypriot migrants who came to Australia in the 1950s. During the 1970s Costa was an active Trotskyist during his later High School years and whilst studying at the University of Wollongong, being a member of the Socialist Workers Party.
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[edit] Early career
In 1979 Costa dropped out of politics and began work as a rigger at the Garden Island naval dockyard. It was there where he was first involved with the Australian labour movement becoming a Delegate for the Federated Ironworkers' Association (now Australian Workers' Union). During this period he also studied at night at the University of Sydney.
In 1983 Costa started work as a trainee engineman and became active in the Australian Federated Union of Locomotive Enginees AFULE (now the Rail, Tram and Bus Union). At the time the AFULE had a militant leadership who began a series of strikes over petty differences with the Australian Railways Union. This led to Costa running against the incumbent leadership of the union in the AFULE's elections which Costa won convincingly.
In 1989 Costa was elected as an Organiser with the Labor Council of New South Wales. In 1998 he was elected as Secretary of the Labor Council.
[edit] Police Minister
He shifted to a political career in 2001, when he was elected to the Legislative Council, and was immediately made Minister for Police. His term was marked by clashes with Police Commissioner Peter Ryan - who acrimoniously quit soon after, as well as with the police union.
Costa served as Police Minister from November 21, 2001, the day he entered the Legislative Council until April 2, 2003.
[edit] Transport Services Minister
In April 2003, Costa was promoted by Premier Bob Carr, and was appointed Minister for Transport Services, Minister for the Hunter, Minister Assisting the Minister for Natural Resources and Minister Assisting the Minister for State Development. His term as Transport Minister was to be more controversial again, as he presided over a public transport system with chronic problems, trains often running late and decreasing services. Furthermore, his closure of several rail lines, most notably the Murwillumbah line and the near-closure of the Newcastle were controversial among the citizens of the respective cities.
Costa served in the newly-created, and since scrapped, post of Transport Services Minister from April 2, 2003 until January 21, 2005.
[edit] Treasurer
Though Costa was popular within the party hierarchy, by 2004, he was widely unpopular among both the general public and sections of the party membership. Public transport was also emerging as a crucial issue for the election due to be held in 2007. When Treasurer Michael Egan abruptly resigned in January 2005, Premier Carr took the opportunity for a major reshuffle. Costa had still been tipped as a potential replacement for Egan, and was open about his ambition for the position. However, Costa was subsequently shifted sideways to the portfolios of Roads, Ports and Economic Reform and replaced with popular Police Minister John Watkins. This was widely seen as a direct response to his handling of the public transport crisis, which was described by multiple journalists as "abrasive". Despite this, he was once again promoted after Morris Iemma replaced Bob Carr as premier, receiving the treasury portfolio, which he had been known to be aiming at for some time.
Costa was appointed Treasurer on February 17, 2006.
In late 2006, the state's economy began to contract, raising the spectre of a recession being declared close to the 2007 election campaign. Costa, as treasurer, sought to blame the monetary policy of the Reserve Bank of Australia on December 5. He called for the federal treasurer to invoke a never-before-used power under the Reserve Bank Act to override the bank's independence should interest rates rise further. Central bank independence has long been part of the bipartisan consensus, not just in Australia but across much of the developed world: Costa's federal counterpart, Peter Costello, Labor treasury spokesman Wayne Swan and the media were scathing in their response.
"Mr Costa wants the public to blame the bank, not the Iemma Government and its economic management," an editorial in the Sydney Morning Herald ran. "Mr Costello has rightly dismissed this call with contempt. It is irresponsible to call for such a move: it would only undermine the bank's successful fight against inflation, which has underpinned Australia's economic wellbeing."
The Herald added that Costa's foray into monetary policy "calls into question the claim to economic responsibility which Labor has been painfully attempting to re-establish since the last election."
Business lobby group ABL State Chamber was more scathing. "Mr Costa's proposal is straight forward madness," a spokesman told AAP, "An independent Reserve Bank board is one of the crucial foundations of a modern economy."
Costa, along with Frank Sartor and Joe Tripodi, was considered one of the government's least popular ministers and was attacked in Liberal party campaign ads at the 2007 election. After accusing the Liberals of targetting "a bunch of people with Italian sounding names", Costa was forced to play a low-key role in the ALP campaign.
