The Minister for Revenue and Assistant Treasurer today announced that the Common-wealth will amend the Trade Practices Act to underpin a national approach to professional standards legislation and proportionate liability.
The Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, said today's meeting, in Perth, was the fifth to consider issues relating to the affordability and availability of insurance and continued on from last year's highly successful forums which resulted in a landmark agreement to national negligence law reform.
"All jurisdictions have taken significant steps to implement nationally agreed law reforms."
Senator Coonan, also urged all jurisdictions to implement already agreed law reform as a matter of priority to improve the market for public liability and professional indemnity across Australia.
Senator Coonan said that Ministers had confirmed their on-going support for reform and the need for benefits to flow through to consumers quickly.
A major focus of the meeting was on the difficulties faced by all professionals in obtaining professional indemnity insurance at a reasonable price. Ministers considered the national adoption of proportionate liability and professional standards legislation.
"The Commonwealth and all States and Territories have committed in principle to adopt proportionate liability for economic loss. This will mean that a defendant will only be liable to the extent that they have contributed to the plaintiff's injury."
"The existing system of joint and several liability can result in unfair outcomes for professionals in circumstances where a professional has contributed toward the loss of a plaintiff in only a minor way," Senator Coonan said.
Ministers also agreed to examine as a matter of urgency a framework for the adoption of a national professional standards legislation.
"Although liability would be capped, professional standards legislation has the potential to deliver significant benefits for consumers. Professional standards legislation improves risk management and requires professionals to take out insurance to high levels." Senator Coonan said.
The Meeting also considered the concerns of doctors about `blue sky' claims in excess of indemnity limits. The examination of professional standards legislation will take into account its potential application for medical practitioners.
Treasury officials have been tasked urgently to examine professional standards legislation and the consistency of law reform. (Communique)