The Irish Hospital Consultants' Association (IHCA), which represents the majority of consultants in the State, has decided to enter negotiations on a new contract.
Following a national council meeting last night in Galway, it was decided to recommend to its annual meeting today to enter contract negotiations with the Department of Health.
Confirming the decision, IHCA general secretary Finbarr Fitzpatrick said that "while there was a majority of the national council who voted in favour, the decision wasn't unanimous".
The move follows an offer on Thursday by Minister for Health Mary Harney to increase the number of specialists eligible for a greater amount of State cover for insurance claims. The Minister has now said she will lower the insurance cap from €1 million to €500,000 for neurosurgeons and orthopaedic surgeons who specialise in spinal surgery.
Consultant obstetricians had previously been eligible for the lower cap, while all other consultants must cover the first €1 million in costs and damages associated with a claim arising from private practice.
The IHCA has been seeking an extension of the lower cap to cover all consultants as a precondition for entering contract negotiations. Ms Harney made her offer following the publication of an independent actuarial report into the effectiveness of the caps on indemnity cover.
The independent review, which was recommended by the Labour Court, was carried out by London-based actuarial consultants Lane, Clark and Peacock.
"We have no reason to believe that the caps on liability that were introduced last year are not adequate to meet the Government's objective of ensuring the cost of such cover remains affordable to the doctors concerned," the reviewers concluded.
However, they recommended adjusting the cap for neurosurgery and spinal orthopaedics as well as suggesting a further review of the scheme in 2007. The actuaries estimated the Government would face an additional cost of €250,000 per annum to extend the lower cap to the two additional specialities.
Welcoming the IHCA's decision Ms Harney said: "I look forward to business-like and efficient talks over a short time-frame.
"The Government is planning several hundred new consultant posts in the coming years and it is vital that we have a consultant contract that supports reform."