Deirdre Clune (Fine Gael)

I am glad to have the opportunity to speak on this Bill. It is an extremely important measure and was a commitment in the programme for Government. Much has been done to try to reduce the excessive cost of prescription drugs in this country. There has been much debate previously on the matter. The Financial Emergency Measures in the Public Interest Act focused on the wholesale mark-up price and significantly reduced the cost of some prescription drugs.

This Bill is welcome. It is important that we press the issue of trying to control the price of drugs and ensuring that generic products are used by providing for it in legislation. It will be good for costs and also for competition. I note that the patient will be involved and will be offered generic drugs by the pharmacist. It will be subject to their agreement. It is important, too, that should they not wish to use the particular drug, they can pay the cost themselves. The IMF or should I say the IMB, the Irish Medicines Board, will be responsible for the designation of these drugs, although we could also get to the point where the IMF will be. The IMB is an august body and knows what it is doing. It licenses products and prescription drugs and it will be responsible for the designation of drugs that must be interchangeable.

On the subject of generic drugs and drugs that are coming off patent, the jobs and enterprise committee had a discussion yesterday with Barry O'Leary of the IDA. Being from Cork, I am very conscious of the impact of drugs coming off patent. There have been a number of job losses in the area due to it happening in the case of Lipitor, which has had a significant effect. The pharmaceutical industry is very important in this country. We have heard a great deal from it not just with regard to this Bill, but also about its difficulties in bringing drugs to the market. There is a rigorous testing process, which is important and necessary, but it is becoming more difficult to develop individual products and there is a longer lead-in time to production. The cost of producing drugs is very high. Nevertheless, I note that following negotiations the industry has provided savings of €10 million in June 2012. The Minister also said he had negotiations with the industry on this Bill. That is important because the industry has circulated its concerns to all Members and they will be addressed on Committee Stage.

I have been looking at the responses of various organisations on the issue of generic drugs. The IMO welcomed them but said there is a need to inform the patient. It will be very important to have a public information process because the patient who will probably have confidence in a brand might have a certain fear or concern about being offered a generic product. That concern must be addressed. It is only by informing people about the thinking behind this move that we can have their confidence and bring them with us. That is an important point. In addition, the Irish Pharmacy Union, IPU, while welcoming the fact that its members will be dispensing cheaper generic drugs, and it happens quite often anyway despite there not being a statutory obligation to do so, has expressed concerns about the reference pricing. It says it could result in shortages in supply and in some players exiting the market. Perhaps the Minister will address that concern in his reply.

The health committee held hearings on the issue of the pricing and use of generic drugs. The Irish Osteoporosis Society and the Asthma Society of Ireland had concerns about the generic alternatives that would be on offer to their members. I do not have the expertise to comment on that but I assume that if there are concerns about the quality of alternative products, they would be addressed by the IMB.