HC Deb 19 May 1969 vol 784 c32
41. Mr. Pavitt

asked the Secretary of State for Social Services if he will make a claim for overpayment in respect of the purchase for the National Health Service of broad-spectrum antibiotics in cases where the parent companies of the suppliers fail in their appeal to the Supreme Court in the United States of America against their conviction on price-fixing and other charges.

Mr. Crossman

I am advised that I have no claim against these suppliers arising out of proceedings in the United States.

Mr. Pavitt

Is my right hon. Friend aware that this is an area where £3½ million might well be saved? Has he examined the results of the Kefauver Report, the Report of the Public Accounts Committee of 1961 and the Sainsbury Report to see how much more vigorously he can pursue economies in this direction?

Mr. Crossman

I am well aware that this has, quite reasonably, raised a sense of annoyance among those who, as I do, want to see a reduction in the cost of drugs. However, the decision of the American court does not confer any rights under English law. That is our difficulty.

Mr. Fisher

Will the right hon. Gentleman not agree that these attacks on American owned companies are misconceived in that it is greatly in Britain's economic interest to have American research investment based here for export to Europe rather than vice-versa, and that the V.P.R. scheme precludes this practice?

Mr. Crossman

I did not take my hon. Friend as attacking American schemes. He was concerned about an American court decision, in the hope that it could be applied profitably here.