Arthur Morgan (Louth, Sinn Fein)
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Question 269: To ask the Minister for Health and Children the amount that would be saved if she nationalised the wholesale distribution of subsidised drugs and compelled medical practitioners to prescribe low-cost generic drugs. [36883/09]

Arthur Morgan (Louth, Sinn Fein)
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Question 295: To ask the Minister for Health and Children the money which would be saved if she nationalised the wholesale distribution of drugs and medicines on community drugs schemes. [37251/09]

Arthur Morgan (Louth, Sinn Fein)
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Question 296: To ask the Minister for Health and Children the system which could be employed to require the use of generic drugs for payments rather than branded drugs; her views on such options; the approximate cost difference involved; and if she will make a statement on the matter. [37252/09]

Mary Harney (Dublin Mid West, Independent)
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I propose to take Questions Nos. 269, 295 and 296 together.

I have no plans to nationalise the wholesale distribution of drugs and medicines supplied under the GMS and community drugs schemes.

My Department and the Health Service Executive (HSE) have 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.

On 1 July 2009, I made regulations to reduce payments to community pharmacists under the Financial Emergency Measures in the Public Interest Act 2009. The main changes were a reduction in the wholesale mark-up paid on drugs from 17.66% to 10%, a common sliding dispensing fee across all schemes and a reduction in the retail mark-up paid on a number of schemes (Drug Payment Scheme, Long Term Illness, etc) from 50% to 20%. These changes are expected to result in savings in 2010 of approximately €133 million. Savings of €55 million are expected in 2009.

Generic drugs are available in Ireland for many medicines. In 2008, 18% of prescription items under the GMS scheme and 11% of items under the Drugs Payment Scheme and Long Term Illness Scheme were dispensed generically.

In 2008, expenditure on proprietary drugs where there was an equivalent generic available under the GMS, Drugs Payment Scheme and Long Term Illness Scheme was €227 million. The HSE estimates that there is a price differential of approximately 10% between off-patent proprietary drugs and their generic equivalents. This suggests that approximately €23 million in savings per annum could be made if there were full generic substitution of products supplied under the GMS, DPS and LTI.

My Department and the HSE are continuing to examine all aspects of pharmaceutical expenditure with a view to containing costs including options for the introduction of a system of reference pricing coupled with generic substitution.