HC Deb 17 July 1969 vol 787 cc876-7
Q2. Mr. William Hamilton

asked the Prime Minister if he will recommend the establishment of a Royal Commission to inquire into the drugs industry.

The Prime Minister

No, Sir. The Sainsbury Committee has recently carried out a comprehensive review of the relationship of the pharmaceutical industry with the National Health Service and I see no need for a further general inquiry.

Mr. Hamilton

Does not my right hon. Friend agree that if we could cut the rising cost of drugs in the National Health Service this would obviate the need for charges on teeth, glasses and prescriptions, which are so objectionable to many hon. Members on this side of the House? Can he say what the machinery is, interdepartmental or otherwise, to ensure that the profit margins of the drug manufacturing industries are not unreasonable?

The Prime Minister

The rising cost of prescriptions has caused great concern in the House and has been the subject of many reports by the Public Accounts Committee under successive Chairmen. I was concerned with some of these. This is an extremely complex issue. There are more reasons than the alleged rapacity of the pharmaceutical industry.

A great deal of ground has been covered since the Sainsbury Report in the negotiations between the Department and the pharmaceutical industry for a new price review scheme, but these talks are not yet completed.

Sir T. Beamish

Can the Prime Minister name any country in the world which enjoys cheaper drugs than we do? Is it not about time to leave this most successful industry alone?

The Prime Minister

Unlike most other countries, in this country the payment for drugs falls on the public purse, and there is therefore a real obligation on the Minister, of whatever party, to secure the maximum economy and the avoidance of excessive profits by the pharmaceutical industry, which has been highlighted, for example, in certain reports of the Public Accounts Committee. In the lifetime of the Conservative Government some progress was made. It was, I think, the right hon. Member for Wolverhampton, South-West (Mr. Powell) who insisted on the patent-busting—I do not know whether it is still his view—which helped to bring down excessive profits in the pharmaceutical industry.