asked the Minister for Industry and Commerce if price control is applied to drugs and medicines; and, if not, why.
Ceisteanna—Questions. Oral Answers. - Price Control.
29.
Under the Prices and Charges (Notification of Increases) Order, 1976, Irish manufacturers of drugs and medicines are subject to the same price controls as manufacturers of other products. However, by far the greater proportion of drugs and medicines sold in this country is imported and no control can be exercised on the manufacturers' prices for products manufactured outside the State.
Importers and wholesalers of drugs and medicines are exempt from the scope of the order but changes in prices and cash margins are monitored by the National Prices Commission. Retailers' margins are subject to the Prices (Stabilisation of Profit Margins of Retailers) Order, 1973. The Deputy will be aware that proposals for a new approach to control retail margins have been made by the National Prices Commission and I have already announced that I propose to introduce the necessary enabling legislation.
I have also asked the commission to have a study carried out in relation to the prices being charged for these products and preparations for such a study are in train.
Would the Parliamentary Secretary not agree that it is desirable that proper price control be applied to drugs and medicines generally in view of the fact that the prices charged in this country are significantly higher than the prices for exactly the same products in Britain and Northern Ireland and on the Continent of Europe? Does he appreciate that the Irish consumer is paying far more for standard medicinal products than persons in Britain and Europe generally?
It is precisely because of complaints made along the lines of the Deputy's supplementary question that I have asked the National Prices Commission to carry out a study. One of the matters, perhaps the major one, they will be looking at will be the possibility, a strong one, that these products are being imported here at higher prices, ultimately paid by the Irish consumer, than they are being sold on the British and other markets. However, this is not something which our information suggests is occurring within Ireland. The evidence we have in the NPC study of January, 1975, indicates that the profit margins of chemists, while variable, on average are not unreasonable. The problem seems to be outside the State, but I agree something should be done about it.
I take it the Parliamentary Secretary does agree that it is not a question of the retail or wholesale margins, it is a question of import prices.
I do.
In those circumstances and in view of the fact that the bulk of these products are sold to this country by multi-national drug corporations and that the British Government have been able to effect a major reduction in the price that they or their national health service have to pay, would the Parliamentary Secretary indicate that the Irish Government will be able to take similar steps as were taken in Britain?
I would hope that the NPC study will give the factual evidence that will enable us to take whatever action is necessary but I would not like to anticipate the action until I have the evidence.
The remaining questions will appear on tomorrow's Order Paper.