Michael Ring (Mayo, Fine Gael)
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Question 156: To ask the Minister for Health and Children the negotiations that have taken place between the pharmacists and the Health Service Executive. [12865/08]

Michael Ring (Mayo, Fine Gael)
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Question 157: To ask the Minister for Health and Children the recent negotiations that have taken place between the pharmacists and herself. [12866/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 156 and 157 together.

The Health Service Executive (HSE) has been reviewing the pharmaceutical supply chain, from manufacturers and wholesalers through to community pharmacists, with a view to seeking value for money in the State's drugs bill, consistent with patient safety and continuity of supply. After extensive consultation and independent analysis, the HSE announced revised pricing arrangements for wholesale delivery on 17th September 2007.

A process of dialogue was established under Mr. Bill Shipsey SC to address concerns expressed by the Irish Pharmaceutical Union (IPU), on behalf of community pharmacists. At a meeting between the HSE and the IPU under Mr Shipsey SC on 5 December 2007, a proposal was outlined to the IPU to (i) address their immediate concerns regarding the alleged impact of the proposed revised wholesaler arrangements on GMS-dependent pharmacies and (ii) to provide a basis upon which discussions on a new substantive contract could commence. The IPU was not prepared to accept this proposal from the HSE and, accordingly, no further discussions have taken place under Mr Shipsey's aegis since then.

On 18 February 2008 I established an Independent Body to begin work immediately to assess an interim, fair community pharmacy dispensing fee for the existing level of service being provided by pharmacists. 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.

Both the HSE as the contracting body and the IPU as the representative organisation for community pharmacists, along with other stakeholders, are entitled to make submissions to the Independent Body. Its recommended fee level, subject to Government approval, will be backdated to the date from which any pharmacist may choose to avail of the HSE's interim contract offer. The development of a 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.