No, apparently what happened is Annie Phelan who played Myra (brilliantly IMO - she was definitely one of the very finest actresses ever to appear in Prisoner) was only ever on 6 month contracts at time.
However, when she heard that Betty Bobbit (Judy) was leaving she asked for a pay rise - basically she asked to be put on the same scale as Betty (but no more than that) realising that Betty's exit would lead to more scenes for Myra and an increased workload for herself. Apparently, the powers that be refused her request and her contract was not renewed.
That's the reason why she was written out in the terroist seige.
However, it would just be interesting to know precisely when the contract negotiations took place and at what point Annie knew she was leaving the serial. ie whether the Ruth Ballinger arc was thought up purely as a plot device to facilitate Myra's exit or if they tagged the terroist seige on to the storyline at a later date (post Ruth's induction to Wentworth) to write out Myra following contract negotiations breaking down between Annie and Grundys.
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