Oireachtas Joint and Select Committees

Tuesday, 1 April 2014

Joint Oireachtas Committee on European Union Affairs

National Reform Programme for Ireland 2014: Minister of State at Department of Foreign Affairs and Trade

3:50 pm

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Yesterday the director general of the HSE, Mr. Tony O'Brien, commented on issues pertaining to consultant costs and monitoring. His comments and those of the Minister for Health suggest issues have arisen in this regard and that we have to move to address them. I am aware from my time on the Committee of Public Accounts that it is a complicated issue, but it is receiving the attention it deserves.
I agree with Deputy Seán Kyne that people should read this document if they are interested in public policy. The programme deals with the issue of medicinal products which have a major impact on medical costs, stating:

Solid progress is being made with regard to increasing the share of generic drug usage. Ireland is aiming for a target of 70% generic penetration of the off-patent market by volume by 2016. In Q4 2013 generics accounted for over 58% of the total off-patent market by volume.
One might argue such measures should already be in place - I would say the same - but that figure of 58% is an indication of the progress made in terms of the legislation on referencing drug prices between branded and non-branded products. The programme also sets out other steps that will be taken.
I could not agree more with Deputy Bernard J. Durkan's comment on the need to fly on our own. I have addressed the issues he raised on nuclear energy and energy infrastructure. I have heard him speak on the subject of credit and working capital at our parliamentary party meetings and in the Dáil. The programme describes in some detail the steps that have been taken to provide for non-bank lending while the banking system recovers to the point where it can meet the credit needs he identified. Four funds have been set up out of the private sector to deal with supply to and investment in companies.

For example, the microcredit fund has been set up and is beginning to do some good work with really small companies. Even in the best of times, such companies might have struggled to obtain bank credit, but they certainly are struggling now. This is the reason the Government has been working with the German Government to identify measures such as the German KfW bank playing a role in providing credit for Irish small to medium-sized enterprises, SMEs, because I have no doubt that until the difficulty of the supply and cost of credit is dealt with, the economic recovery we all seek will face too great a barrier. While progress has been made in these areas, from the feedback they receive from businesses in their constituencies, all members are aware that there still is a lot of work that must be done in this regard. However, it is because of its importance that it is included in the national reform programme and it will be pivotal in the Taoiseach's engagement at the European Council.

I have done my best to respond to a breadth of questions and will conclude at the point at which I began. I really appreciate the effort and all of the questions colleagues have put. It should be an area in which there will be future Oireachtas engagement and I will certainly play my part in making sure this happens with the committee. I thank the Chairman.

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