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Legislative Assembly for the ACT: 2003 Week 5 Hansard (8 May) . . Page.. 1771 ..

MR QUINLAN (continuing):

problems. The number of companies offering professional indemnity products has shrunk significantly over the past year or two-on some estimates, from 37 companies down to two. This is due to the reduction in underwriting capacity, to which I have referred in previous reports to the Assembly.

In addition, the public liability market continues to be flat when it comes to availability, and volatile when it comes to affordability. However, I am very pleased to report that the group scheme I announced in December last year has been embraced by the ACT community sector. While the crisis is still very serious, nearly 20 policies have been issued since the end of the year-and there is a healthy quota of offers and proposals going through the system.

Mr Speaker, the government is not going to relax in the light of these small steps forward. While this government has done more for the ACT community sector than any other Australian government, it is clear to me-as I have outlined before in this place-that there is much work still to be done by all Australian governments before this situation plays out. It is for these reasons that the government continues to be an active participant in ministerial and intergovernmental committees.

I have tabled the joint communiqué for the fifth ministerial summit, held on 4 April. Members will note that the joint communiqué contains a strong theme of national consistency, and it is this theme on which I want to focus today. I will start with medical indemnity and recommendations of the Australian Health Ministers Advisory Council-in the Neave report, which is referred to on page 2 of the joint communique.

I have been critical of the process in the past because there were two major reviews underway in relation to medical indemnity, with inconsistencies in their recommendations. Ministers agreed, at the ACT's urging, to examine these reviews, with a view to achieving national consistency in the ultimate response formula. Members will see that there was a significant general consensus on a number of areas.

Regarding proportionate liability, ministers agreed to task the Heads of Treasuries Insurance Issues Working Group to work urgently towards developing a nationally consistent model for proportionate liability for economic loss. Members will note the Chief Minister's press release on 11 April 2003 relating to the introduction of proportionate liability in the territory.

On the professional standards legislation, a decision was taken to have the working group investigate the feasibility of nationally consistent professional standards legislation. Ministers instructed the working group to report promptly on implications and mechanisms for developing a nationally consistent approach to the professional standards legislation.

As to the latter, I do not favour professional standards legislation. No other country has this. Several, including the UK, Canada and the US, have specifically rejected it. However, such was the concern of a number of my interstate colleagues, in response to the issues faced by professionals in the light of the insurance crisis, that we have all agreed to at least consider it.

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