Brendan Smith (Cavan-Monaghan, Fianna Fail)

I am taking this Adjournment matter on behalf of my colleague, the Minister for Health and Children, Deputy Mary Harney, who is unavoidably absent due to other Department business. I thank the Deputy for raising this matter as it provides me with an opportunity to outline to this House the current position.

Over recent years, the Health Service Executive has reviewed the pharmaceutical supply chain with a view to seeking value for money in the State's drugs bill, in order to better fund existing and innovative therapies without compromising patient safety or continuity of supply. Following the completion of public consultation, and informed by the independent economic analysis carried out by Indecon International Economic Consultants, new wholesale pricing arrangements were announced by the HSE on 17 September. The report by Indecon was published by the HSE on 13 November 2007.

In response to demands from community pharmacists to address what they see as the impact of the new wholesale pricing arrangements, the HSE offered a voluntary interim contract with a flat rate dispensing fee of not less than €5 for all dispensing under the GMS and community drugs schemes. Pharmacists and the Irish Pharmaceutical Union did not see this as a positive gesture and have not taken it up.

Following engagement and discussion with the Irish Pharmaceutical Union in February, the Minister established an independent body to assess an interim, fair community pharmacy dispensing fee to be paid for the medical card scheme, the DPS and other community drug schemes. This initiative is aimed at supporting pharmacists in rural or inner-city areas with predominantly medical card patients, as the Government is concerned to support community pharmacy services particularly to less well-off patients and areas. This body is being chaired by Mr. Sean Dorgan, former head of IDA Ireland. It has been asked to make its recommendations by the end of next May and I understand it is on course to produce its report and recommendations in that time.

Both the HSE as the contracting body and the Irish Pharmaceutical Union as the representative organisation for community pharmacists, along with other stakeholders, are entitled to make submissions to the independent body. I understand the Irish Pharmaceutical Union has made a submission to the independent body and that it had a detailed and comprehensive engagement with Mr. Dorgan's group last week on a wide range of matters pertinent to his terms of reference.

I reiterate that the Government recognises the IPU as the representative body for pharmacists and wishes to maintain its longstanding relationship with the union as a key stakeholder in health care.

Unfortunately, the HSE has reported that it has, to date, received notification from over 500 community pharmacy contractors indicating their intention either to cease providing services from 1 May 2008, or otherwise reserving their right to do so.

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