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Pharmaceutical Sector.

Dáil Éireann Debate, Thursday - 31 January 2008

Thursday, 31 January 2008

Questions (22, 23)

James Reilly

Question:

16 Deputy James Reilly asked the Minister for Health and Children if she will report on recent discussions with pharmacists and if progress has been made; if she will appoint an independent body to provide an independent and fair assessment of all aspects of the pharmacy contract; and if she will make a statement on the matter. [2697/08]

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Liz McManus

Question:

31 Deputy Liz McManus asked the Minister for Health and Children if she will ensure that an independent process is put in place to resolve differences between the Health Service Executive and pharmacists; and if she will make a statement on the matter. [2705/08]

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Written answers

I propose to take Questions Nos. 16 and 31 together.

Following engagement between the Health Service Executive (HSE) and the Irish Pharmaceutical Union (IPU) under Mr Bill Shipsey SC in December 2007, at which the sides did not reach agreement, the HSE has offered a draft interim contract to pharmacists to address their main concerns regarding the alleged impact of the proposed revised wholesaler arrangements on GMS-dependent pharmacies. I am informed that the HSE intends to implement the revised wholesaler arrangements from 1st March 2008. The Executive also recently commenced discussions with the IPU and other parties on the development of a new substantive pharmacy contract. The details of the draft interim contract, and the HSE's other intentions in this regard, were set out in a letter to individual community pharmacists on 2nd January 2008.

In the light of the legal position previously outlined in the House and after further consultation with the Attorney General, the other relevant Departments and the HSE on the best way of progressing the development of a new contract with pharmacists in compliance with competition law, my Department is working to develop appropriate arrangements for the development of contracts and for the setting of the fees payable in respect of contracts with private sector undertakings for the provision of health services on behalf of the HSE. These arrangements may include the establishment of an independent body which would consider the nature of the service to be provided and all other relevant factors in each case and make recommendations to the Government in relation to the fees it considers appropriate. The composition of such a body, its terms of reference and the timescale for its work are amongst the matters to be considered in this regard. In line with the legal advice received, the HSE may enter into discussions with community pharmacists on the non-fee aspects of their contract, with a view to developing a new substantive pharmacy contract.

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