Michael Ring (Mayo, Fine Gael)
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Question 248: To ask the Minister for Health and Children the effect on the GMS scheme and medical card holders if pharmacists decide not to participate in the scheme any longer due to the ongoing dispute regarding new contracts; and if she will make a statement on the matter. [10551/08]

Michael Ring (Mayo, Fine Gael)
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Question 249: To ask the Minister for Health and Children if she will enter into negotiations which give pharmacists the right to negotiate in respect of the issues that are ongoing; and if she will make a statement on the matter. [10552/08]

Michael Ring (Mayo, Fine Gael)
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Question 250: To ask the Minister for Health and Children the contingency plans in place now that the pharmacists are not taking up the contract with the Health Service Executive; and if she will make a statement on the matter. [10553/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 248 to 250, inclusive, together.

I would like to reiterate that there are no changes planned to the operation of the GMS and community drugs schemes. The HSE has put a comprehensive contingency plan in place at local level in the event of the withdrawal of service by community pharmacists, including information notices in newspapers and an information helpline, open from 8am to 8pm Monday to Saturday. The HSE has informed my Department that no community pharmacist has withdrawn service under the GMS and community drugs schemes and all patients continue to receive their entitlements in the usual way. I welcome this decision by community pharmacists to continue to provide service.

The Government is firm in its view that the wholesale mark-up paid on the price of drugs should be reduced to a level that is fair to both taxpayers and wholesalers. The existing mark-up in the range of 15% to 17.6% is neither reasonable nor sustainable. The Government also supports the HSE's decision to pay an 8% mark-up from 1 March, and 7% from 1 January 2009. I met with the Irish Pharmaceutical Union recently and heard their point that there should be an independent assessment of the fees offered. I have now established an Independent Body to begin work immediately to assess an interim, fair community pharmacy dispensing fee of at least €5 to be paid for the medical card scheme, the DPS and other community drug schemes.

This Body is being chaired by Seán Dorgan, former Head of IDA Ireland. It has been asked to make its recommendations by the end of May 2008. Its recommended fee level, subject to Government approval, will be backdated to 1 March 2008. The Independent Body held its first meeting on 25th February 2008 and has invited submissions. Both the HSE as the contracting body and the IPU as the representative organisation for community pharmacists, along with other stakeholders, will be entitled to make submissions to the Independent Body, on issues of concern to them. The Independent Body will also be entitled to engage whatever outside expertise it requires to assist it with its task.

Based on its consideration of submissions received and its own independent evaluation, the Body will recommend an appropriate dispensing fee that would, in its view, represent a fair and reasonable price to be paid for the pharmaceutical service currently being provided by community pharmacists to the HSE under the GMS and community drug schemes. If approved by Government, it will be backdated to the date from which any individual community pharmacist may choose to avail of the HSE's offer. Accordingly, each community pharmacist will have three options: to avail of the interim contract as recently offered by the HSE; to accept the interim contract upon the report of the Independent Body; or to stay with the existing retail fee structure until the agreement of a substantive new contract.

The development of the substantive new contract will also get underway as soon as possible. This will be done under the auspices of an agreed facilitator and it too will be priced by the Independent Body. I believe this provides all concerned with a reasonable way to make the transition to a fair and transparent method of payment for present services and, I hope, greatly developed pharmacy services in the near future.