By Rob Taylor

CANBERRA, Oct 31 (Reuters) - A German doctor refused permission to live permanently in Australia because his son has Down Syndrome on Friday promised to fight the decision as an immigration row erupted about his future.

Bernhard Moeller came to Australia two years ago with wife Isabella and son Lukas to work at the Wimmera Base Hospital in rural Victoria state, and was given a temporary visa to help plug a critical doctor shortage in Australia.

But immigration officials refused permission for the Moellers to settle permanently because Lukas, 13, failed health tests and was judged by officials as likely to be a permanent drain on taxpayer funding due to his condition.

"It's the worst thing that happened to me, worse even than when they told me Lukas had Down Syndrome," Isabella Lukas told local media. "We fought for years against discrimination in Germany against Lukas," she said.

Moeller, who supervises intensive care for a community of 54,000 people, said he was told he was unwelcome because he had a mildly disabled son who was able to attend a normal school and play sports including cricket and football.

"That's not nice however you put it," he told state radio.

Moeller is the second German doctor to run into difficulties with Australian officials.

Thomas Kossman, The chief trauma surgeon at a major Melbourne hospital, was suspended last year and accused of over-billing and carrying out complex surgery he was untrained for. Kossman says he is the victim a witch-hunt orchestrated by jealous rivals.

Australia has a critical doctor shortage, particularly in regional and rural areas. Many foreign doctors and nurses have been employed in the over-stretched health system.

Moeller was widely supported by local people in the regional hub of Horsham as immigration officials defended their handling of the case, saying the family could appeal and ultimately plead for intervention from Immigration Minister Chris Evans.

National Health Minister Nicola Roxon said she would immediately speak to Evans about reversing the decision, and was supported by powerful state government Premier John Brumby.

"We understand the importance of having doctors working in our rural and regional communities," Roxon said. (Editing by David Fox)

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