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$5m GPs deal doomed
By ROSS PEAKE, Political CorrespondentPolitical Correspondent

The controversial deal to hand $5 million from health programs to a lobby group now appears doomed.

Fatal cracks appeared in the contract yesterday when the Howard Government raised the possibility of cancelling the contract if reports found any wrongdoing.

However, the death knell was sounded when prospective tenants for the controversial GP House project in Canberra began backing away.

The Opposition attacked the Government in Question Time over the contract to divert the money from asthma and rural specialist programs to the commercial venture for the Royal College of General Practitioners. The college would use the money to help construct and outfit the building in Forrest, although construction has not yet begun.

The grant was approved just before the election by outgoing health minister Michael Wooldridge, who is now working as a consultant for the college.

The Labor Party said the issue left the perception of a conflict of interest and reinforced the need for a cooling-off period before retired ministers could take up consultancies.

On Sunday, Health Minister Kay Patterson defended the contract and said it was intended to bring together under one roof three groups dealing with GPs.

She said it was not unusual to divert unspent money from programs rather than return it to consolidated revenue.

But Prime Minister John Howard said he did not rule out withdrawing the offer to give taxpayers' money to the project.

Mr Howard said he was not told of the grant when it was approved.

He ordered reports from all departments involved in the diversion of the $5 million and gave an assurance the health programs would not suffer.

"The Government intends to support these programs in full," he told Parliament yesterday.

"I do not rule out withdrawing the Commonwealth's offer to the Royal Australian College of General Practitioners. I do not intend to say anything further about this matter until I have had the benefit of getting a full report from all relevant departments."

Prospective tenants for GP House contacted yesterday were unwilling to join the venture.

The board of the Australian Divisions of General Practice decided to reject the college's offer, received on Friday, to rent space in GP House.

ADGP chairwoman Julie Thompson said the rent being asked was 50 per cent higher than its current office in Belconnen.

In a twist, Dr Thompson suggested the college could rent space next to her organisation, which represents 18,000 GPs.

Rural Doctors Association president Ken Mackey said it was staying put in its Macquarie Street office.

Speaking from his practice in Lockhart, he said there was no advantage in co-locating the GPs' organisations.

"The Department of Health and the Minister felt GPs should be speaking with one voice and should have a more unified view. That is not necessarily for the better," he said.

The Brisbane-based Australian College of Rural and Remote Medicine said it had not been approached to take a lease at GP House.

Labor's Chris Evans said the Royal College of General Practitioners planned to occupy only 200 sq m of the 4000 sq m building, with the remaining space to be rented out.

Opposition Leader Simon Crean said the row highlighted the need for a 12-month cooling-off period before retired ministers could take up work in areas related to their portfolios.

"I think the relationship between government and the private sector has become greatly more enmeshed over recent years," he said.

In the Senate tomorrow, Democrat Leader Natasha Stott Despoja will call for Labor Party support for legislation to ban ministers from taking work in their portfolio area for two years after leaving politics.

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