asked the Minister for Health if his attention has been drawn to a report by the EC Commission on the Economies of 1992 which quotes the prices of certain drugs as being disproportionately expensive in Ireland, for example, the drug zyloric costing 47 ECU in Ireland as against 5 ECU in Spain, and the drug dogmetil costing 35 ECU in Ireland as against 4 ECU in Portugal; the action he proposes to take in respect of these particular discrepancies; and the way in which, in general terms, he proposes to curb the cost of drugs used in the General Medical Service.
Ceisteanna — Questions Oral Answers - Drug Prices.
17.
The report consists of a study by the Directorate General of the Commission for Economic and Financial Affairs. The study, assesses the potential economic effects of the completion of the internal market. In discussion of the pharmaceuticals industry, reference is made to the 1987 BEUC Report on comparative retail drug prices of drugs within the Community.
The Deputy will be aware that in 1983, arising from specific recommendations of the Trident Report, the then Minister entered into a voluntary pricing agreement with the Federation of Irish Chemical Industries, controlling the trade prices of drugs and medicines on the Irish market by reference to directly comparable trade prices obtaining in the United Kingdom. Some 85 per cent of finished human pharmaceuticals on the Irish market are imported from the UK. That agreement was renewed by the same Minister in August 1986. At my request, officials of my Department undertook an intense renegotiation of the 1986 agreement in the early summer of 1987. The renegotiated terms were formulated in a new agreement which took effect from 1 August 1987.
I share the view of my predecessors in office, that the general level of manufacturers' prices and wholesalers' trade prices obtaining in the UK, and therefore in Northern Ireland also, offers a reasonable and sound basis for the establishment of unit costs here.
Direct price comparisons with selected continental countries, where drug prices are lower than they are in the UK, may not necessarily be meaningful when the generality of social, economic and market circumstances are taken into consideration.
I should point out that I have no function as regards the retail prices of drugs and medicines paid by private patients in high street retail pharmacies.
The question of unit costs of drugs to the Exchequer has always been kept under constant review and that review will continue with particular regard to the situation arising from the movement towards completion of the internal market. The more general issue of control of drug costs in the GMS scheme was addressed in a previous reply to a parliamentary question on 10 May 1988.
What conceivable social, economic and market factors could justify the divergence in the prices of the drugs mentioned in the question?
There is a tremendous variation in the price of drugs. The Deputy gave a price of 47 ECU in Ireland as against 5 ECU in Spain but there are also variations within the other European communities. For example, the unit prices range from 2 ECU in Italy to 18 ECU in The Netherlands for dogmetil and 4 ECU in Portugal to 35 ECU in Ireland for stugerom.
I am going to be out of order because I am repeating the question.
I hope not.
The Minister has not answered the question. How, why and on what basis can these divergences be justified given that Ireland in both cases was singled out in this report in respect of the drugs mentioned? They are not my figures. They come from an EC report. Ireland is the country with the most expensive price for these drugs. Why? Why does the Minister continue to link our price to UK prices? Would it not make more sense to say that Irish prices shall be linked to Portuguese prices if the Portuguese authorities are able to get a better deal?
I agree with the Deputy. I and my Department are concerned about the high cost of drugs. Primarily the variation between the countries is a matter for the Department of Industry and Commerce. In our Department we have negotiated with the Federation of Irish Chemical Industries to ensure we get the very best price available and we have taken the British prices as the unit cost prices on which to base our negotiations.
I am sorry. What is the justification for the difference of these drugs dogmetil and zyloric as between Ireland and the countries mentioned? It is a simple question of which the Minister has had four days' notice.
I do not have the exact reason why one drug should be a different price here as distinct from other European countries. Reading the reports it is obvious there are variations between each of the EC countries in regard to the price of drugs and a vast variation between other European countries.
In view of the unsatisfactory nature of the Minister's reply I propose, with your permission, Sir, to raise this matter on the Adjournment.
I will communicate with the Deputy.