Dr Kerryn Phelps, AMA President, with Steve Leibmann, Channel Nine, 'Today'

AMA President Dr Kerryn Phelps is saying doctors will stop work, maybe today, if the problem is not fixed quickly. She's in our studios in Canberra.

Dr Phelps, good morning to you.

PHELPS: Good morning, Steve.

LEIBMANN: You're serious? All doctors will stop work again unless they get this government guarantee?

PHELPS: It's not going to be a coordinated or orchestrated campaign for doctors to stop work. But what I can say is that individual doctors all over the country are having to make a very very difficult decision about whether they continue work, because they are desperately worried about their futures.

We were all sent, everyone who is insured with UMP, last Friday was sent a letter by the Provisional Liquidator saying that while they would cover legal costs, they would not cover the settlement of any claims.

Now, there's one doctor in Queensland who has a $5 million claim against him right now. Now, can you imagine going to work every day and thinking if there is one little thing that goes wrong then it could mean that I lose everything.

LEIBMANN: But the government has guaranteed indemnity till June 30th, and it has now written this, quote, 'Letter of Comfort'. I don't know what that is. Maybe you can explain that. But it's written this Letter of Comfort to the Liquidator. Is that not good enough?

PHELPS: The government guarantee wasn't good enough for the UMP Liquidator, and they were not satisfied with the wording. The government then said that they would write a Letter of Comfort, so called, which is supposed to enable the Liquidator to be able to settle claims on behalf of doctors. That then had to go to the courts. The matter was heard yesterday. It has been adjourned. There has been no hearing.

Unless there is a positive response to this, and unless we get a clear and unequivocal signal from the Liquidator and from the government today about the direction this is going, then I believe many doctors, as they already are, are making decisions about their futures. Whether they will retire early, whether they will take a long break, whether they will work overseas until this matter is sorted out.

LEIBMANN: So are you saying at this point in time the situation is out of control and it's the government's fault?

PHELPS: I'm saying we're on the brink of chaos. I believe the government is working as rapidly as it can behind the scenes to find a solution. But what we need is a signal from the government as to what direction they are taking to solve this crisis in the long term, but also what is the short term solution that will keep doctors able to continue working.

LEIBMANN: Well, let me ask you this then: is Assistant Treasurer Helen Coonan across all of this? Or is she out of her depth?

PHELPS: I'll be expecting to speak to Senator Coonan and Senator Patterson today to find out exactly when they are going to be able to give an answer to the profession. We hit a brick wall early next week because next week the notices will go out from UMP as to whether or not they will be able to renew policies.

Now, if they can't renew policies because they're not satisfied that they'll be able to meet claims, then we are going to have, within weeks, 8,000 uninsured doctors in Queensland.

LEIBMANN: Let me ask you the question again, though, is Senator Helen Coonan, the Assistant Treasurer, is this beyond her? Is this matter now too big for her?

PHELPS: I think we have to make the point that this issue crosses five Federal Government portfolios. It also crosses eight State and Territory borders. It's very complex. But because it's complex, is no excuse for leaving doctors and patients in the dark. This is a major threat to doctors and patients. And unless we get some clear answers we are on the brink of chaos and we must get answers within the next day or two.

LEIBMANN: Okay. One quick last question, you're facing a leadership challenge this weekend. Have you got the numbers? Are you going to win?

PHELPS: I wouldn't be prepared to call the result of an election like this on Sunday. The members will be deciding on Sunday. I believe that they will vote based on record.

LEIBMANN: Okay. Kerryn Phelps, thanks for your time.

PHELPS: Thanks, Steve.

Ends