HC Deb 08 February 1965 vol 706 cc17-9
9. Mr. Mitchell

asked the Minister of Health what increase in prices has followed the application of the 15 per cent. import surcharge to drugs; and what is his estimate of the annual cost to the National Health Service of this impost.

Mr. K. Robinson

There have been few increases so far; on present information the cost to the National Health Service in respect of drugs may amount to about £350,000 per annum.

Mr. Mitchell

The small amount of the increase obviously suggests that the trade concerns rely on the promises of the Government about the temporary nature of the surcharge. I trust that these hopes will not be dashed. While thanking the Minister for his reply, may I ask the Minister whether he is aware that his right hon. Friend the Chancellor of the Exchequer, in his statement on the purpose of the surcharge, said that it was to reduce imports? Would I be right in assuming that the Minister does not want imports of lifesaving and life-prolonging drugs to be reduced? If so, has he made representations to the Chancellor of the Exchequer for the deletion of this item from the surcharge? If not, will he do so?

Mr. Robinson

I do not want the import of life-saving drugs to be reduced if they are unobtainable here, but the whole of this matter was fully debated when the Bill concerned was before the House on Committee stage.

Lord Balniel

As the right hon. Gentleman did not attend either of the two debates, surely he should take this opportunity of telling the House what steps he took to make representations to the Government to exclude drugs from this 15 per cent. surcharge, which is internationally illegal and which is inflationary to the cost of the National Health Service.

Mr. Robinson

I am sure that the noble Lord knows that discussions between Ministers are not usually revealed on the Floor of the House.

Mr. Snow

Although there may have been few increases so far, would my right hon. Friend be very careful to watch the activities of certain American companies, bearing in mind the amazing discrepancy between the prices charged in this country by such companies and the prices which they charge on the Continent?

Mr. Robinson

I can assure my hon. Friend that the position is being watched.

Mr. Thorpe

As the Minister has taken a very proper interest in the effects of tobacco on the nation's health, would he suggest to the Chancellor that it would be a good step to take the surcharge off imported drugs and put it on imported tobacco?

Mr. Robinson

I am sure that my right hon. Friend will take due note of that suggestion from the hon. Gentleman.