Dinny McGinley (Donegal South West, Fine Gael)
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Question 56: To ask the Minister for Health and Children if her attention has been drawn to the fact that members of an association (details supplied) have given notice of the withdrawal of service from 1 August, 2009; the steps she will take to avoid such a development; and if she will make a statement on the matter. [26894/09]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I am aware that a small number of community pharmacists have indicated their intention to withdraw from participation in the community drugs schemes in the light of my decision to reduce certain payments under the Financial Emergency Measures in the Public Interest Act 2009.

These measures are absolutely necessary for two reasons. Firstly, the cost of the community drugs schemes has doubled since 2002 to more than €1.6 billion in 2008 and fees and other income earned by pharmacists have doubled accordingly. Secondly, it cost an exorbitant €640 million to get €1 billion of drugs from the factory gate to the patient in the community in 2008. This has to be reduced. Given the current financial circumstances of the country - indeed, in any circumstances - this growing level of cost is unjustifiable and unsustainable.

Savings from the combined effect of these measures have been estimated at €55 million for the remainder of this year and €133 million on a full year basis. This is almost exactly what would have been saved if I had imposed an across the board 8% reduction in fees and retail mark-ups and reimposed the reduction in wholesale mark-up to 8%, as attempted by the HSE last year. However, I have decided to achieve broadly the same level of reduction through a revised common fee structure for dispensing, a reduced retail mark-up, removal of the special payment for over-70s dispensing which is no longer appropriate given the changes in medical card eligibility arrangements, along with the lesser wholesale reduction.

The approach I have taken addresses pharmacists' concerns that the current GMS dispensing fee is inadequate and provides for a standard dispensing fee structure across schemes. This will benefit pharmacies serving remote areas and socially deprived communities.

I believe that threats of withdrawal from the community pharmacy contract are unjustified and not in patients' interests. There can be no grounds for causing upset or anxiety about the supply of prescriptions to patients.