Finian McGrath (Dublin North Central, Independent)
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Question 187: To ask the Minister for Health and Children the position regarding the pharmacies dispute; and if she will work with them in resolving the matter and their concerns. [30509/07]

Finian McGrath (Dublin North Central, Independent)
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Question 214: To ask the Minister for Health and Children if she will have the impact of the Health Service Executive proposals on pharmacy services fully evaluated and have a fair and independent process for the determination of fees and services. [30723/07]

Willie Penrose (Longford-Westmeath, Labour)
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Question 235: To ask the Minister for Health and Children the progress that has been made to date in relation to resolving the issues that have arisen as a result of the Health Service Executive's decision to refuse to continue to negotiate with the Irish Pharmaceutical Union on the price changes that have been proposed; if her attention has been drawn to the significant impact that these changes will have on pharmacies throughout the country; and if she will make a statement on the matter. [30962/07]

Michael Creed (Cork North West, Fine Gael)
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Question 236: To ask the Minister for Health and Children if she will appoint an independent arbitrator to resolve the dispute between the Health Service Executive and the Irish Pharmaceutical Union; and if she will make a statement on the matter. [30974/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 187, 214, 235 and 236 together.

As the Health Service Executive (HSE) has operational responsibility, under the Health Act 2004, for the management and delivery of health and personal social services, the issue of revised reimbursement prices for community pharmacy under the GMS and community drugs schemes, following the announcement by the HSE on 17 September 2007 of new wholesaler arrangements, is being managed by a HSE-led team which includes representation from my Department.

The revised pricing arrangements were arrived at following a detailed consultation process accompanied by independent economic analysis. In the light of the position on competition law previously outlined by me, the HSE obtained legal advice, confirmed by advice to my Department, that a fair and transparent consultation process was the most appropriate means to allow for the determination of new reimbursement arrangements. This process involved direct discussion with wholesaler companies and a call for public submissions, published on 20th December 2006, in response to which a total of 161 submissions (including 143 from community pharmacy contractors) were received.

Following the completion of public consultation, and informed by the independent economic analysis, carried out by Indecon Economic Consultants, new reimbursement arrangements were announced by the HSE on 17th September 2007. The report by Indecon was published by the HSE on 13 November 2007. All aspects of the Indecon report were considered by the HSE in making its determination. 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 has recently been renewed engagement between the Irish Pharmaceutical Union and the HSE under the auspices of Mr. Shipsey.

I am also exploring, in consultation with the Attorney General, the other relevant Government Departments and the HSE, the best way of progressing the development of a new contract with pharmacists.