§ 11. Mr. Pavittasked the Secretary of State for Prices and Consumer Protection if he will take steps to monitor the increase of the price of drugs and restrict profit margins, in the light of the 62 per cent. margin on the price to the retailer of PRO-HYD 50 capsules 30.
§ Mr. MaclennanIt is for the Price Commission to decide whether to investigate a particular price increase or the margin of a particular distributor.
§ Mr. PavittWill my hon. Friend see the Price Commission about these inordinate increases? The example which I give in my original question is only one of dozens of similar price rises in pharmaceutical products. Even worse, is my hon. Friend aware that the taxpayer is paying 100 per cent. more for commonly used drugs in the National Health Service than he was a year ago, and that this is a complete twist of the inflationary spiral about which his Department should be doing something?
§ Mr. MaclennanMy hon. Friend will know that the prices of certain drugs are controlled by the Pharmaceutical Price Regulation Scheme and not by the Price Commission. To that extent, therefore, my hon. Friend's question should be directed to my right hon. Friend the Secretary of State for Social Services. To the extent that there are drugs which are not involved in that scheme, they are subject to the Price Commission's examination, and my right hon. Friend directed the Price Commission to examine the prices, costs and margins in the production and distribution of proprietory non-ethical medicines. My hon. Friend will have read that report, and he will 890 recognise that it does not bear out fully all his assertions.
§ Mr. Michael MorrisWill the hon. Gentleman recognise that this question has nothing to do with the type of medicines that he referred to the Price Commission? The hon. Member for Brent, South (Mr. Pavitt) mentioned ethical products. However, before referring any matter to the Price Commission, will the Minister draw to its attention the recent report of the Office of Health Economics which said that the chief problem in the NHS was for primary care to be increased, and, concomitant with that, the greater use of drugs and research into drugs? If the drug companies are to succeed they have to be able to market their products properly.
§ Mr. MaclennanI do not think that removes from the Government the responsibility to scrutinise carefully, through the Pharmaceutical Price Regulation Scheme, the prices of drugs and, in the non-ethical sphere, the Price Commission's responsibility. But I must re-emphasise that it is not a matter on which my right hon. Friend can direct the Price Commission. The Commission is required to investigate at its own discretion where there is a suspicion that a price increase is not justified.