§ 17. Mr. K. Robinsonasked the Minister of Health arising from the new drug price agreement, of how many drugs the price will be directly negotiated, and what provision there is for the list to be expanded; whether the export price criterion remains the average export price; and whether the definition of new drugs lies within his control.
§ Mr. PowellNegotiations will be opened at once on the prices of a few widely-used drugs which together account for nearly half the value of those satisfying the export price criterion. Other drugs in large demand by the Health Services will be considered from time to time. The export price criterion remains the weighted average export price. New drugs in this context are defined in the scheme.
§ Mr. RobinsonIs the right hon. Gentleman aware that, as the major purchaser of these drugs in this country, he is in a position to drive a harder bargain with drug manufacturers than he appears to have done? In the light of the very considerable criticisms that were made by the Public Accounts Committee, does he not think that at least he could have obtained the lowest export price as the export price criterion?
§ Mr. PowellNo. I do not think that it would be right to accept the lowest export price, in view of the fact that there will be instances where, with small quantities, an abnormally law price is quoted on an export contract.
§ Mr. LiptonWill the Minister give an assurance that these arrangements will not prevent any hospital group or region from buying drugs on the Continent if that group or region so wishes?
§ Mr. PowellI would refer the hon. Gentleman to my Answer to an earlier Question.
§ 18. Mr. K. Robinsonasked the Minister of Health on what date he reached agreement with the Association of the British Pharmaceutical Industry on the renewal of the voluntary price regulation scheme; and what savings he estimates will result from the modifications on the basis of current expenditure on drugs.
§ Mr. PowellOn 14th December. The savings cannot yet be estimated.
§ Mr. RobinsonIs the right hon. Gentleman aware that one cannot help being a little bit suspicious about the timing, since last Monday he was unable to tell me even what the proposed changes were but on Wednesday a Question, perhaps inspired, was put down by the noble Lord the Member for Hertford (Lord Balniel) and answered on Thursday; but I will do my best to submerge the suspicions that arise. Can he give no estimate whatever of the savings that will be made as a result of these changes? Surely, some calculations must have been done by the Department?
§ Mr. PowellI do not think that the hon. Gentleman need hesitate to submerge his suspicions. No decision had been taken on this matter until 14th December, and before that time there was nothing that I could tell the House. The reason why I cannot yet estimate the savings is that, as I told the hon. Gentleman in answer to a previous Question, the negotiations which the new agreement will make possible have not yet begun.