Michael Ring (Mayo, Fine Gael)
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Question 132: To ask the Minister for Health and Children if her attention has been drawn to the seriousness of a situation that will develop if agreement is not reached in relation to the dispute between the Health Service Executive and the pharmacies; and if she will make a statement on the matter. [31403/07]

Michael Ring (Mayo, Fine Gael)
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Question 133: To ask the Minister for Health and Children the talks that have taken place and the progress made to resolve the dispute between the Health Service Executive and pharmacies; and if she will make a statement on the matter. [31404/07]

Finian McGrath (Dublin North Central, Independent)
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Question 168: To ask the Minister for Health and Children if she will assist a person (details supplied) in Dublin 9. [31676/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 132, 133 and 168 together.

I have previously outlined in detail to the Oireachtas the legal provisions under competition law which prevent the Health Service Executive (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 17th September 2007. The independent economic analysis was carried out by Indecon Economic Consultants and was published by the HSE on 13 November 2007. All aspects of the Indecon analysis were considered by the HSE in making its determination.

In regard to the new reimbursement prices, the main wholesaler companies have confirmed to the HSE that they will charge community pharmacists the same price for these drugs and medicines as pharmacists will be reimbursed by the HSE for these products. Furthermore, there are no changes planned by the HSE to the operation of the GMS medical card and community drugs schemes, and all patients continue to receive their entitlements in the normal way. My Department understands that the HSE has not received formal notification from any community pharmacist regarding cessation of services under the GMS or the various community drugs schemes. They will be required to give three months notice in writing of any intention to cease providing this service.

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. 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. There is ongoing engagement between the Irish Pharmaceutical Union and the HSE under the auspices of Mr. Shipsey and, in view of the progress in this regard, the HSE has decided to defer the implementation of the new reimbursement rates planned to take effect for community pharmacists on 1st December 2007 to a later date.