Oireachtas Joint and Select Committees

Thursday, 19 September 2013

Public Accounts Committee

Annual Report and Accounts 2012: Discussion with IDA Ireland

11:50 am

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

There are 22,000 people working in the pharmaceutical sector. IDA Ireland has done very well in bringing the pharmaceutical sector to Ireland, but when it comes to the HSE purchasing pharmaceuticals, it pays three to four times as much as what is paid for these products in Northern Ireland. A product that one will pay €7 in Northern Ireland will cost €30 in Dublin. It is my honest belief the Department of Health and IDA Ireland are afraid to tackle the pharmaceutical companies on what they are charging the HSE. I do not understand how a product can be produced in Ireland and sold to the National Health Service in the United Kingdom for a fraction of the price at which they will sell it to the HSE. I know IDA Ireland has the job of attracting companies to locate here and that the HSE is charged with negotiating the price of products. I understand from the proceedings of the Committee of Public Accounts that HSE personnel do not meet directly with company personnel to discuss price but rather meet a committee which represents the industry. Is there anything Mr. O'Leary can do to ease the burden on taxpayers when attracting pharmaceutical companies to Ireland in order that they charge the same price for their products in Ireland as they charge abroad? I will never forget an incident a few years ago when I used to wear contact lenses. Allergan Pharmaceuticals manufactures all of the products used and before the introduction of the euro, I had to pay IR£14. When I was on holiday in Brazil, I found the same product that had been manufactured in Westport, County Mayo and for which I paid for one quarter of the price.

I do not understand why the Irish pharmaceutical companies come to Ireland and charge the Irish customer three or four times the price that they charge for the product they make in Ireland, having shipped it half way around the world. What is Mr. O'Leary's view on that?

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