Dáil debates

Wednesday, 19 December 2007

Competition (Amendment) Bill 2007: Second Stage (Resumed)

 

3:00 pm

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)

I compliment my colleague, Deputy Higgins, on bringing forward this Bill. It is brought forward, first, because section 4 in the Act is over-restrictive in its interpretation and, second, to facilitate negotiations to address the dispute between the pharmacists and the HSE. We have raised this matter on a number of occasions in the Chamber and I have done so as the party's spokesperson on health. It has also been discussed in the health committee.

Despite various attempts to have the issue addressed, significant progress has not been made. We welcomed the fact that extra time was given to address the issues. The new regime was to be implemented on 1 December so there has been some success in having the decision postponed. Essentially, however, the HSE is trying to push through its view on what the prices of medicines should be, without any negotiation. The IPU said it was prepared to go to the negotiating table without any preconditions or predetermined outcomes. Anybody would consider that a reasonable approach, yet it is not accepted by the HSE. Indeed, the HSE is not even accepting the advice of its financial advisers, Indecon, which said that the timing of significant changes is crucial and that the changes and the impact of the changes should be evaluated in advance in connection with key stakeholders. That advice clearly was not taken. There is now an attempt to bully a group of people into a take it or leave it deal which has serious implications for their livelihoods. Nobody would expect a group of people to accept that.

Last night the Minister of State, Deputy Michael Ahern, said the Labour Party was, in effect, championing price fixing, which is a serious crime carrying a maximum prison sentence of five years. I welcome the fact that other Ministers have been a little more conciliatory. If this is a case of price fixing, the HSE is doing it. The HSE wants to fix prices without negotiations and the Competition Authority does not appear to have a problem with that. However, it raided the offices of the Irish Pharmaceutical Union and removed its computer server for a few days. It is absolutely disgraceful that the Competition Authority should act in this manner.

Somebody should tell us who complained to the Competition Authority about the IPU. Who decided that the Competition Authority should raid the IPU in this way? It is beyond belief that it should raid the Irish Pharmaceutical Union on this issue, particularly as the HSE is, in effect, trying to fix the prices. It is ludicrous and in no way fulfils the objectives of the Competition Act. For that reason, this Bill should be accepted and, by all means, modified. This interpretation of the Competition Act is unacceptable.

The Minister of State made his accusation last night but the Taoiseach cannot stand over the attitude of his Government and the HSE in this regard. The Taoiseach has a great reputation for sorting out disputes such as this and for having a conciliatory approach in fixing them. However, the Government appears to be standing back on this issue. Many Government Deputies spoke about what the HSE has done but the Government established the HSE and its actions are taking place in a context where the Government is simply standing by and watching what is happening. In that sense, there is an onus on the Government to address this issue and ensure a breakthrough is achieved in the negotiations.

All the Irish Pharmaceutical Union wants is a fair process through which it can negotiate on behalf of its members. If the Competition Act is an impediment to that, the Bill before us is a way to remove the obstacles and we present the legislation in that spirit. However, in the broader context of resolving the dispute, it is essential that a mechanism be found to resolve the differences between the HSE and the pharmacists. The latter have a fair case and, in some instances, do not make any profits whatsoever from dispensing to medical card holders. In that respect, the IPU has a right to negotiate on behalf of its members. If a mechanism is not found to address this issue, the most vulnerable patients will suffer because they are dependent on pharmacists for filling their prescriptions and addressing their needs under the drugs repayment, medical card and methadone schemes. On this, the last day before the Dáil's Christmas recess, we ask that a mechanism be found to resolve the dispute before it affects patients.

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