Joe Carey (Clare, Fine Gael)
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Question 141: To ask the Minister for Health and Children the steps she has taken to resolve the dispute between the Health Service Executive and the Irish Pharmaceutical Union; if she has had discussions with pharmacists since her recent announcement in respect of the new proposals in regard to the purchase and dispensing of drugs; if so, the position regarding these discussions; her views on the impact that these proposals will have on the viability of pharmacies throughout Ireland; and if she will make a statement on the matter. [26905/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I have previously outlined in detail to the Oireachtas the legal provisions under competition law which prevent the HSE from negotiating with the Irish Pharmaceutical Union (IPU) on fees, prices or margins for their members. When it became clear that the HSE could not negotiate with pharmacists or wholesalers on fees or margins, a detailed, fair and transparent consultation process, including independent economic analysis and public consultation, was carried out to inform the final determination of the new reimbursement pricing arrangements for drugs and medicines under the GMS and community drugs schemes. These new arrangements were announced by the HSE on 17 September 2007.

In regard to the new reimbursement prices, the main wholesaler companies have 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. The HSE has been provided with no evidence to indicate that the impact on individual pharmacies will be detrimental, having regard to the totality of fees and mark-ups under the GMS and community drugs schemes.

All the evidence available to the joint HSE/Department of Health and 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 €100 million in 2008.

To address concerns expressed by the IPU, on behalf of community pharmacists, about the implications of the legal advice on competition law on their right to negotiate fees through the Union, 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.

Despite suspension of this process during the recent withdrawal by individual pharmacists of methadone services, there is now renewed engagement between the Irish Pharmaceutical Union and the HSE under the auspices of Mr. Shipsey.