Seán Sherlock (Cork East, Labour)
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Question 87: To ask the Minister for Health and Children if she will address the threat to the community drugs scheme and the fear that some pharmacists may not be able to continue to provide a service due to the decision of the Health Service Executive, without negotiation, to reduce payments to pharmacists under the community drugs scheme; and if she will make a statement on the matter. [24035/07]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 95: To ask the Minister for Health and Children the position regarding the proposed changes in Health Service Executive payment schemes for the supply of medicines; if progress has been made in the discussions between the HSE and the Irish Pharmaceutical Union; and if she will make a statement on the matter. [24054/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 87 and 95 together.

I do not accept that some pharmacists may not be able to continue to provide a service under the GMS and community drug schemes. Nor do I accept there is any basis for community pharmacists threatening to withdraw from these schemes. The main wholesaler companies have recently confirmed to the HSE they will charge community pharmacists the same price for drugs and medicines under the GMS and community drugs schemes as pharmacists will be reimbursed by the HSE following the price reimbursement percentage adjustments announced recently by the HSE. All the evidence available to the joint HSE/Department of Health & Children team dealing with this issue indicated that the State was paying a premium for this service and the new arrangements will save the HSE about €100m in 2008.

The impact of the new arrangements on the incomes of pharmacists will depend on the extent of the discounts which individual pharmacists were getting from wholesalers under the previous arrangements. I am advised that large urban pharmacies and chains typically got discounts of up to 12% whereas small and rural pharmacies got discounts of 2-3%.

I have previously outlined in detail to this House the legal reasons why it is not possible for the HSE to negotiate with the IPU on fees, prices or margins for their members. A process of dialogue was established, chaired by Bill Shipsey SC, to explore ways in which concerns raised by the IPU about the implications of this legal advice might be addressed. At a meeting on 11 October, the IPU maintained that it has a fundamental right as a trade union to fully represent its members on all issues. It appears, therefore, that the Union does not accept the legal position under competition law regarding negotiation on fees. However, in an effort to address concerns on all sides, there is ongoing contact with the Irish Pharmaceutical Union under the auspices of Mr. Shipsey.