Mary Harney (Dublin Mid West, Independent)

I again clarify that no old person will pay 5% of his or her income; the maximum percentage such a person will pay is 1.25%. The maximum amount to be paid will be €2.50 a week, if they have more than 20 prescription items a week. The charge is capped at a sum of €10 a month or €2.50 a week. As the old-age pension is slightly more than €200 a week, this amounts to a figure of 1.25%.

The international evidence is mixed. There have also been significant reductions in the pharmaceutical sector. As a result of the contract agreed with it three years ago, Ireland was placed in the group of countries with a cheaper basket of prices with countries such as Spain. We had been in the group of countries with the most expensive basket. That, together with the reduction of 39% this year in the cost of off-patent products, is leading to us saving a couple of hundred million euro. In addition, we have reduced the margin in the retail pharmacy sector from 50% to 20% under the drug payment scheme. We have changed the manner in which we pay for items prescribed under the medical card scheme and reduced distribution costs from 17.6% to 10%. We are, therefore, doing a lot and the next step in the process is the introduction of reference pricing and generic drug substitution. We have completed Mr. Mark Moran's work. He chaired a group of experts from my Department and the HSE. They have completed their task promptly and it is an excellent piece of work. The legislation is now ready to make this happen as quickly as possible in 2011.