James Reilly (Dublin North, Fine Gael)

It is a contention he has made in the House free from any legal challenge. I do not accept this will be the case and, as a doctor, I do not believe it would ever be allowed to be the case. We can achieve huge savings in drug costs through the use of generic drugs and by negotiating with the pharmaceutical industry to secure price reductions from the brand leaders. We are paying too much for these drugs. We have been using a basket of nine countries for reference and setting ourselves in the middle of the basket. However, some of these countries are on the more expensive side. The pharmaceutical industry is very important to this country in terms of research, innovation and the jobs it provides. At the same time, this is a small market. What has attracted those companies is the corporation tax rate, not the market in this State. We expect to do a deal with representatives of the industry.

I do not understand what the Senator means by money not going into hospitals. He is correct that some of them are carrying a deficit from last year which must be addressed this year. I made it clear last year that each manager in each hospital has a responsibility to stay within his or her budget or face the consequences. In the past the consequence was for the patient, but in future it will be for the manager. We will call in all of the managers who do not stay within budget, having a discussion with them and ensuring their contract for next year reflects the new reality. We are determined to achieve transparency and accountability. It is not patients but the people who are responsible for management of the hospital in the future who will suffer the consequences of their failures.