Vol. 373 No. 4
asked the Minister for Health if his attention has been drawn to a survey undertaken by the European Consumers' Association which shows that drug costs in Ireland are substantially higher than in most EC countries; if in view of this and evidence that the drug companies are taking unjustifiably high levels of profit at the expense of the public health services, he will establish a national drugs formulary; and if he will make a statement on the matter.
38.
asked the Minister for Health if he will give details of the agreement between his Department and the Federation of Irish Chemical Industries in relation to the price of drugs supplied to hospitals and the general medical services, the proposals, if any, he has to renegotiate that agreement at an early date; if he will also take into consideration the findings of the European Consumers' Association, which reveal that Irish consumers are being asked to pay much higher prices than people in the rest of Europe for their drugs; and if he will make a statement on the matter.
I propose to take Questions Nos. 31 and 38 together.
In June 1986 the then Minister concluded negotiations with the Federation of Irish Chemical Industries on a new bilateral agreement governing the terms of supply of drugs and medicines to the health services.
The current agreement with FICI provides that, on average, the price of drugs to the GMS shall not exceed 107.5 per cent of the UK trade price of those drugs. A rebate of 5 per cent of the cost of the drugs supplied to the GMS is also made by the companies concerned.
In the hospital services, a mandatory discount of 15 per cent is given off the listed Irish trade price on orders in excess of £100 in respect of any single manufacturer.
The question of introducing a national drugs formulary is one that is kept under review. The basic drugs formulary concept is already widely used by public hospitals, in selecting drugs for purchase.
The terms of the existing agreement are currently being discussed with the federation by officers of my Department and I shall issue a further statement when these discussions have been concluded.
I should point out, that while I have no control over the retail price of drugs, I am having the reports referred to examined in my Department.
Instead of talking in the context of our relationship with Britain is the Minister aware that in the context of the EC in 1984 our drug prices were the fourth highest in Europe, that in 1986 our prices were the second highest and that some drugs here are costing ten times what they cost in Spain and in other European countries? Has the Minister any plans to introduce legislation which would limit the percentage of profits ploughed back into promoting drugs in this country? Will he consider curbing the power of drug companies in this country where considerable savings could be made rather than indulging in the cuts among temporary workers and temporary nurses? Surely the Minister should renegotiate the arrangements with the drug companies in this country?
The terms of the existing agreement are currently being discussed with the federation by officers of my Department and I shall issue a further statement when these negotiations are complete. It is only right that I should pay tribute to my predecessor Deputy Desmond for the agreement he achieved with the Federation of Irish Chemical Industries in ensuring that the drugs would be purchased by the public services here at just 7½ per cent above their cost price in the UK.
Can the Minister give further details of his plans to reduce the drugs bill which is now in excess of £100 million? The evidence is that we are totally out of line with mainland European prices.
Negotiations are in progress with the Federation of Irish Chemical Industries. I have also set up a cost containment unit in my Department which will examine all purchases made by the health services, including drugs, to see how we can achieve better value for money throughout the health service. It is an area which I will monitor closely because there are savings to be made, although I do not accept that the savings to be made are as great as some people allege.
Question No. 39.
The Minister did not answer one point. Does he intend to introduce legislation curbing the amount of money being spent by drug companies in the promotion of drugs? Such legislation is in place in Britain.
It is a very complex area. At this stage I am reluctant to introduce legislation to curb the drug companies. We must realise that were it not for the research carried on by some of the major multinational companies many of us might not be here today. It is not a simple issue of just bringing in legislation to curb the activities of the drug companies. What we are looking for is better value for money. We will proceed on a voluntary basis and if it is necessary to introduce legislation we will do so.
Question No. 39.
Is the Minister suggesting he will only deal with simple issues?
Deputy Allen, I have called the next question.
