Willie Penrose (Longford-Westmeath, Labour)
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Question 327: To ask the Minister for Health and Children her views, in view of the fact that community pharmacists have indicated their willingness to negotiate reductions in their payments in the present economic situation, on employing mediation machinery, to ensure an equitable solution is achieved for all parties concerned; and if she will make a statement on the matter. [29892/09]

Mary Harney (Dublin Mid West, Progressive Democrats)
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Before I made decisions on the reduction in payments to community pharmacists under the Financial Emergency Measures in the Public Interest Act 2009 a public consultation process was conducted and all interested stakeholders were invited to make submissions. The Irish Pharmacy Union, as the representative body for pharmacists, made both a written and an oral submission to my Department. In addition, 104 other written submissions were received largely from community pharmacists.

Reductions are absolutely necessary for two reasons. Firstly, the cost of the community drugs schemes has doubled since 2002 to over €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 level of expenditure on delivery and dispensing is no longer sustainable, given the current financial circumstances of the country and the other priorities for spending in the health sector.

The Government recognises that these measures will pose a challenge for the pharmacy sector. However, not making these savings would be even more challenging for health services, and would mean significant, immediate cuts in hospital and home-based services for patients.