Oireachtas Joint and Select Committees

Thursday, 25 April 2013

Public Accounts Committee

2011 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 40 - Health Service Executive
Health Service Executive Financial Statements 2011

12:20 pm

Mr. Tony O'Brien:

The pricing environment creates conditions in which there is scope for distributors to play these games. They are only viable with high list prices. Within the margin provided by a high list price one can perhaps afford to offer two or three units and still have a positive margin. That is true of the market in general. To bring it down to something simple, a packet of ibuprofen-based pain relievers on a high street this side of the Border can cost up to €5 but costs £0.79 in Newry. A reference pricing environment which brings pricing to the lowest level will not afford the opportunity for multiple units to be supplied in the envelope of what can then be argued is an inflated list price. There would not be the market conditions for this.