Ruairi Quinn (Dublin South East, Labour)
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Question 198: To ask the Tánaiste and Minister for Health and Children her views on the cost of drugs in the general medical scheme; if she intends to encourage the use of prescribing generic drugs; when the negotiations with the pharmaceutical industry will begin; when she expects to have an agreement; and if she will make a statement on the matter. [3041/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I have previously expressed concern regarding the increasing cost of the State drug schemes and the need to ensure better value for money for this expenditure. All aspects of the drug delivery system, from the manufacturer to the patient, are under review. A number of issues, including access to generic drugs and supply chain costs such as pharmacy mark-ups, are being considered with a view to addressing the rapidly rising costs in medicines expenditure both by the State and by private individuals. No single measure will achieve this by itself. International experience has shown that this is a very difficult task as the sophistication and range of treatments continue to increase along, quite justifiably, with increased expectations on the part of patients.

With regard to increased use of generic medicines, it is my intention to give patients and, ultimately, the taxpayer, as the biggest buyer of drugs, better access to generic drugs where this is possible and appropriate. My Department has begun preparatory work for the introduction of structures appropriate to the Irish drug schemes. In addition, negotiations will shortly commence for a new national pricing and supply agreement with the Irish Pharmaceutical Healthcare Association, IPHA; and the Association of Pharmaceutical Manufacturers of Ireland, APMI, for supply of medicines to the health services and it is intended to address this issue within that agreement.