PRIME Minister Julia Gillard put on a brave face to host ambassadors at the Lodge tonight, after she and Opposition Leader Tony Abbott were mobbed by protesters.

Ms Gillard said she was fine following the incident in which 200 protesters from the Aboriginal tent embassy converged on an emergency services awards function she was attending with Opposition Leader Tony Abbott.

Dramatic pictures: Julia Gillard and Tony Abbott rescued from protesters

The prime minister played down the incident, in which she stumbled while being dragged by security.

"I am made of pretty tough stuff and the police did a great job," she said.

She refused to comment on whether Mr Abbott should apologise for offending Aboriginal activists who were at the nearby Canberra tent embassy, celebrating its 40th anniversary.

The protesters blamed their actions on Mr Abbott's comments earlier on Thursday that it was time to "move on" from the tent embassy.

Ms Gillard also declined to comment on her missing blue shoe, which she lost when police and security dragged her out past protesters.

media_camera Prime Minister Julia Gillard rushed to safety by police and bodyguards. (AAP Image/Lukas Coch)

At least 50 police, including the riot squad, were called to the scene shortly after 2.30pm.

The two leaders, protected by police and security officers, escaped out a side door after about 20 minutes.

Protesters chased their car down the road, banging on its roof and bonnet.

Abbott: Time to move on

Tensions boiled over on Thursday afternoon following comments Mr Abbott made in Sydney earlier in the day.

Mr Abbott said he understood why the tent embassy was set up "all those years ago".



"I think a lot has changed for the better since then," he told reporters.



"I think the indigenous people of Australia can be very proud of the respect in which they are held by every Australian.



"I think a lot has changed since then, and I think it probably is time to move on from that."

media_camera Prime Minister Julia Gillard rushed to safety by police and bodyguards. (AAP Image/Lukas Coch)



Activists from the tent embassy accused Mr Abbott of inciting racial riots with his earlier comments.



Michael Anderson said the comments were disrespectful.



"He said the aboriginal embassy had to go, we heard it on a radio broadcast," he told AAP.



"We thought no way, so we circled around the building."



He said the protesters wanted the leaders to clarify their position and whether Mr Abbott was serious about removing the embassy.



"You've got 1000 people here peacefully protesting and to make a statement about tearing down the embassy - it's just madness on the part of Tony Abbott," Mr Anderson said.



"What he said amounts to inciting racial riots."

For many Aboriginal people Australia Day is considered Invasion Day.

Originally published as Protesters trap PM and Abbott