Mary Harney (Dublin Mid West, Progressive Democrats)

I propose to take Questions Nos. 43 and 46 together.

I previously outlined in detail to the Oireachtas the legal provisions under competition law which prevent the Health Service Executive, HSE, from negotiating with the Irish Pharmaceutical Union, IPU, on fees, prices and margins for its members. When it became clear that the HSE could not negotiate with pharmacists or wholesalers on fees and margins, a detailed, fair and transparent consultation process, including independent economic analysis and public consultation, was carried out to inform the final determination of the new reimbursement pricing arrangements for drugs and medicines under the GMS and community drugs schemes. These new arrangements were announced by the HSE on 17 September last.

In regard to the new reimbursement prices, the main wholesale companies have confirmed they will charge community pharmacists the same amount for these drugs and medicines as pharmacists are reimbursed by the HSE for these products. Furthermore, no changes are planned by the HSE to the operation of the GMS medical card and community drugs schemes, and all patients continue to receive their entitlements in the normal way.

The HSE has not received formal notification from any community pharmacist regarding cessation of services under the GMS or the various community drugs schemes. In the event, they will be required to give three months' notice in writing of any intention to cease providing this service. To address concerns expressed by the IPU on behalf of community pharmacists about the implications of the legal advice on competition law as regards their right to negotiate fees through the union, a process of dialogue was established, chaired by Mr. Bill Shipsey SC, to explore ways in which their fears might be addressed. Despite the suspension of this process during the recent withdrawal by individual pharmacists of methadone services, there has recently been renewed engagement between the Irish Pharmaceutical Union and the HSE under the auspices of Mr. Shipsey. I am exploring, in consultation with the Attorney General, other relevant Departments and the HSE, the best way of progressing the development of a new contract with pharmacists.

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