TRANSCRIPT
of
HON. PETER COSTELLO MP
Treasurer

Doorstop

Launch of HMAS Ballarat

Williamstown

Saturday, 25 May 2002
1.45 am

SUBJECTS: United Medical Protection; ABC

JOURNALIST:

Mr Costello any reaction to the Supreme Court ruling yesterday regarding United

Medical Protection? Was it a good ruling?

TREASURER:

Well, the Government welcomes the ruling. What it does is it underwrites the

Government guarantee in respect of claims during the period when the Government

has offered to stand behind doctors, and it gives doctors the confidence to

go out and to continue operating and working in their normal practices in the

normal way. So, we welcome the ruling, and it’s an indication of the measures

that have been put in place and doctors should have every confidence to continue

on with their practice.

JOURNALIST:

Kerryn Phelps has cautiously welcomed the ruling but is still calling on the

Prime Minister to intervene. What’s your reaction to that?

TREASURER:

Well, you’ve got to understand that the Government has now given a guarantee

while further discussions transpire about a long term solution. And the long

term solution is going to be involving all of the parties, probably limitation

on future verdicts, it will require doctors paying premiums, and it will involve

the taxpayer contribution which has already been given in respect of current

payments. But at the end of the day what we need to do to ensure that we have

a sustainable medical indemnity insurance position, we need to get a grip on

the escalating costs. And it’s going to be very important for the states to

legislate in this area so that premiums don’t blow-out as a consequence of verdicts

blowing-out. And the Government stands ready to co-operate with the states to

get that fundamental change.

JOURNALIST:

So the onus is more on the states than the Federal Government?

TREASURER:

No, the Federal Government has already stepped in. The Federal Government has

stepped in with a guarantee between now and the 30th of June. That was endorsed

by the New South Wales Supreme Court. Between now and then we want to work on

a long term sustainable solution. The long term sustainable solution will involve

states, I believe, having to address the question of liability and verdicts.

It will involve insurers, if we can get them back in to the industry, and it

will involve doctors because at the end of the day doctors will have to continue

to pay premiums.

JOURNALIST:

Do you think that Jonathan Shier should have been paid half a million dollars

to leave the ABC early, quickly and quietly?

TREASURER:

Well, that’s a matter for the Board. You will have to speak to the Board. The

Board made the decision and the Board has to appoint a replacement.

JOURNALIST:

(inaudible) about the long term solution that you were just talking about then

for the doctors?

TREASURER:

Look, the Commonwealth Government has stepped in, and has given a guarantee

until the 30th of June which has just been endorsed by the New South Wales Supreme

Court. Now in order to go forward from there we will need the co-operation,

one, from state governments to limit verdicts and liability. Two, if we can

get insurers to come back into the market. Thirdly, if the doctors themselves

will have to pay premiums to continue their insurance, and we will have to set

this up on a long term and sustainable basis. What we have done, is we have

given the guarantee for doctors to be able to go back and to continue their

operations, that has been endorsed by the New South Wales Supreme Court and

discussions will continue to get a long term solution in place.

Thank you.