Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 298: To ask the Minister for Health and Children the situation with regard to the recent dispute between the Health Service Executive and pharmacists; her views on the widespread public interest in the matter; and if she will make a statement on the matter. [1075/08]

Michael Ring (Mayo, Fine Gael)
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Question 435: To ask the Minister for Health and Children if she will ensure that an independent review of the payments to pharmacies takes place to set a new pay structure, prior to any of the proposed changes by the Health Service Executive in this regard. [2020/08]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 447: To ask the Minister for Health and Children the action she has taken to intervene in the community pharmacy crisis since Dáil Éireann rose for the Christmas 2007 recess; if she will ensure that the Health Service Executive enters direct negotiations without preconditions with the IPU on all relevant issues; and if she will make a statement on the matter. [2206/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 298, 435 and 447 together.

Following engagement between the Health Service Executive (HSE) and the Irish Pharmaceutical Union (IPU) under Mr Bill Shipsey SC in December 2007, at which the sides did not reach agreement, the HSE has offered a draft interim contract to pharmacists to address their main concerns regarding the alleged impact of the proposed revised wholesaler arrangements on GMS-dependent pharmacies. I am informed that the HSE intends to implement the revised wholesaler arrangements from 1st March 2008. The Executive also recently commenced discussions with the IPU and other parties on the development of a new substantive pharmacy contract. The details of the draft interim contract, and the HSE's other intentions in this regard, were set out in a letter to individual community pharmacists on 2nd January 2008.

In the light of the legal position previously outlined in the House and after further consultation with the Attorney General, the other relevant Departments and the HSE on the best way of progressing the development of a new contract with pharmacists in compliance with competition law, my Department is working to develop appropriate arrangements for the development of contracts and for the setting of the fees payable in respect of contracts with private sector undertakings for the provision of health services on behalf of the HSE. These arrangements may include the establishment of an independent body which would consider the nature of the service to be provided and all other relevant factors in each case and make recommendations to the Government in relation to the fees it considers appropriate. The composition of such a body, its terms of reference and the timescale for its work are amongst the matters to be considered in this regard. In line with the legal advice received, the HSE may enter into discussions with community pharmacists on the non-fee aspects of their contract, with a view to developing a new substantive pharmacy contract.