Bernard Durkan (Kildare North, Fine Gael)
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Question 324: To ask the Minister for Health and Children if she is available to preside over discussions between the Health Service Executive and the Irish Pharmaceutical Union with a view to reaching agreement on outstanding or contentious issues; and if she will make a statement on the matter. [34366/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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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. 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.

As the Deputy is aware, in order to address concerns expressed by the Irish Pharmaceutical Union (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.