Colm Burke (Fine Gael) | Oireachtas source

I welcome the announcement made yesterday by the Minister for Health that the cost of drugs will be reduced in the next three years. The total cost savings will be in the order of ¤400 million. In 2000 the cost of medication and drugs was ¤573 million. By 2010 this figure had increased to ¤1.894 billion, an increase of over 230%.

I raise an issue of concern. I submitted a freedom of information request to the Health Service Executive concerning the procedures used in the purchasing of drugs and was surprised to read in the letter received in response that there was no centralised system for the purchase of pharmaceuticals for hospitals. It further stated the national maximum prices of medicines had been governed by a series of sequential framework agreements dating back to the 1970s. It is obvious they have not worked. When we next debate health issues, we should question the way the system in place in the HSE is working.

Members also should address the position whereby each individual hospital appears to be working on its own and is not bound by rules as regards what it pays for drugs. This issue must be considered because the costs still are too high. They are far higher than what is being paid in hospitals in the United Kingdom for pharmaceuticals, drugs and medicines and they must be reduced further. I accept that what the Minister has done constitutes a huge improvement and is a welcome development but much work remains to be done in this regard and this area must be monitored carefully in the next few years.