Seán Ardagh (Dublin South Central, Fianna Fail)
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Question 176: To ask the Minister for Health and Children if she will take action to resolve the dispute between the Health Service Executive and the pharmacists, particularly where if affects people on methadone (details supplied); and the position regarding the matter. [25972/07]

Pat Breen (Clare, Fine Gael)
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Question 182: To ask the Minister for Health and Children the steps she is taking to resolve the dispute between the Health Service Executive and pharmacists; if she will appoint an independent facilitator; if her Department are prepared to negotiate with the Irish Pharmaceutical Union; and if she will make a statement on the matter. [26026/07]

Michael Ring (Mayo, Fine Gael)
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Question 200: To ask the Minister for Health and Children if she is breaking the contract with the pharmacies sector by forcing them to do something without negotiating with them. [26164/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 176, 182 and 200 together.

I have previously outlined in detail to the Oireachtas the legal reasons why it is not possible for the HSE to negotiate with the Irish Pharmaceutical Union (IPU) on fees, prices or margins for their members. A detailed, fair and transparent consultation process, including independent economic analysis and public consultation, informed the final determination of the new reimbursement arrangements announced by the HSE. The evidence available to the HSE indicates that the impact on individual pharmacies will not be detrimental, having regard to the totality of fees and mark-ups under the GMS and community drugs schemes.

In regard to the reimbursement prices for drugs and medicines under the GMS and community drugs schemes, the main wholesaler companies have recently confirmed to the HSE they will charge community pharmacists the same price for these drugs and medicines as pharmacists will be reimbursed by the HSE for these products.

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 that 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%.

In relation to the withdrawal by some pharmacists from dispensing under the Methadone Treatment Protocol, the HSE put in place a contingency plan under which it provided an alternative service to the patients affected. As the Deputy will be aware, pharmacists resumed their dispensing methadone service last week and in that context the HSE has completed, in line with safety protocols, the transfer back to the community pharmacists of the patients involved.

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. In an effort to resolve the current impasse, renewed engagement will take place this week between the Irish Pharmaceutical Union and the HSE under the auspices of Mr. Shipsey.