Leo Varadkar (Dublin West, Fine Gael)
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Question 223: To ask the Minister for Health and Children the response of her Department to each individual recommendation in respect of the recommendations contained within the Consumer Strategy Group report directed to her Department; if the recommendations have as of today been implemented in full, in part, or not at all; if, of those recommendations which have not been implemented to date, she will implement them; and if she will make a statement on the matter. [42254/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The Consumer Strategy Group was established in March 2004 to advise and make recommendations for the development of national consumer policy. The Group's report and recommendations were published in May 2005. Following their publication, a High Level Inter-departmental Committee was established to examine the recommendations and advise on their implementation. The Committee published its final report in February 2006. The Consumer Strategy Group made five recommendations (recommendations 8 to 12 of the report) relating to pharmaceuticals for which my Department is responsible. Since the report was published significant progress has been made by both my Department and the HSE.

Recommendation 8: Change the current methodology for establishing manufacturers' prices of pharmaceuticals. Include a consumer impact assessment to ensure that all consumers are getting best value for money. Under new agreements reached between the HSE and pharmaceutical manufacturers in September 2006, the methodology for establishing manufacturers' prices of drugs and medicines has been changed to ensure greater value for money for both the State and consumers. The basket of countries used for the pricing of new drugs and medicines has been increased to include lower price European countries. Price cuts for off-patent drugs and medicines have been introduced and cost-effectiveness assessment is now possible for high cost items. These changes have resulted in downward pressure on Irish manufacturers' prices bringing them closer to the EU average.

Recommendation 9: Review the GMS/DPS schemes to redress the current imbalance in cross-subsidy of pharmacy incomes by DPS consumer payment. The remuneration of community pharmacists under the various drugs schemes will be reviewed as part of the ongoing review of the pharmaceutical supply chain which commenced with the manufacturers' agreements in 2006.

Recommendation 10: Strengthen and broaden the current optional incentive scheme for GPs to encourage generic prescribing. The Indicative Drugs Target Scheme, which was designed to encourage more rational and cost-effective prescribing under the General Medical Services Scheme, was suspended in 2006 as it was found, on expert advice, to be no longer viable in its present form, or meeting its stated objectives.

Recommendation 11: Display prices for branded and generic drugs in pharmacies at the point of purchase. The Consumer Strategy Group also recommended that prices be displayed for all drugs and medicines in pharmacies at point of purchase. There are logistical difficulties in doing this which are further complicated by current differences in retail prices under the various drug schemes. Following the review of pharmacist remuneration it may be possible to consider options in this area.

Recommendation 12: Allow pharmacists to provide generic substitution for branded products. The fifth recommendation of the Group concerned generic substitution by pharmacists. Although generic substitution may contribute towards cost control in the short term, the main driver of increased expenditure on drugs and medicines for both the State and consumers is the increasing volume of prescribed pharmaceuticals. While generic substitution exists in Ireland, the particular nature of the Irish pharmaceutical market does not lend itself to extended generic substitution. The option of off-patent price cuts, agreed under the 2006 pharmaceutical manufacturers' agreements, was pursued as it was considered, on expert advice, to yield greater savings in this area.

In addition, the ongoing review of the drugs supply chain will include consideration of rational and cost-effective prescribing. I have also recently established a group, under the chair of Dr Michael Barry of the National Centre for Pharmacoeconomics, which will consider, among other things, the capacity for increased generic prescribing by GPs.