Fed: Drs allowed to apologise under =2 Canberra
The government is still looking at how much restructuring the industry will cost.
"It may be there is no further outlay by the Commonwealth and the $35 million we providedwas really only a guarantee," Senator Coonan told journalists.
Senators Coonan and Patterson would not comment on whether the government would furtherprop up AMIL.
However in a leaked letter from Prime Minister John Howard to United Medical Protection,which owns AMIL, the prime minister said it would be inappropriate for the governmentto provide further assistance.
Senator Patterson said the government would not allow medical services in the communityto be disrupted.
Doctors have warned of a potential hike in prices and their exit from the professionas they struggled to pay skyrocketing insurance premiums.
Their insurers are contending with massive payouts, increasing claims, as well as problemswithin the insurance industry arising from September 11 and the HIH collapse.
Senator Coonan said there was no guarantee premiums would not rise further under the proposals.
"The whole purpose of the public liability forum and this forum has been to put a platformunder spiralling costs," she said.
"The medium term aim of all this is to try to make sure that premiums not only willbe stabilised but that there can be some cost effective way that premiums can be written."
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KEYWORD: INDEMNITY FORUM 2 CANBERRA
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