Breaking News: GST Talks `Productive'

Well, I take it back. ABC News is reporting that the Treasurers Meeting about GST revenue has just broken up and, to my astonishment, there has apparently been a breakthrough in the disagreement between the Commonwealth and NSW. NSW Treasurer Michael Costa, sounding cautiously optimistic, confirmed that discussions were `productive', but did not wish to expand, as a deal has not yet conclusively been reached. This is far more than I expected, obviously. As much as I hate those leering, line-up-and-kiss-Howard-rear COAG meetings, it's good to see a modicum of co-operation between the two levels of government. More on this development as soon as it zooms through the airwaves.

UPDATE: Smiling Peter Costello must be a genuinely scary person. The little birds who hover around Governor Macquarie Tower say that Michael Costa isn't exactly the most un-daunting gentleman in the world, and yet today's Sydney Morning Herald is reporting the deal as a `backdown' on NSW's part. It's difficult to say, given the scant details available so far, whether this is the case. Significantly, it still appears that the Commonwealth Grants Scheme has not been adjusted.