HC Deb 05 May 1981 vol 4 c8
11. Mr. Leighton

asked the Secretary of State for Social Services if he will make a statement on the application of the European Economic Community draft directive on proprietary medicinal products and the question of parallel importing to United Kingdom circumstances.

Mr. Patrick Jenkin

I refer the hon. Member to the sixteenth report from the Select Committee on European Legislation. I subscribe to the view that a directive may be necessary, but not in its present form.

Mr. Leighton

In view of the opposition of the British pharmacists, does the Minister envisage any positive gain from the directive to the National Health Service?

Mr. Jenkin

In theory the extension of parallel importing should exercise a downward pressure on prices but in reality, because the pharmaceutical price-regulating scheme which applies to purchases of drugs by the National Health Service applies only where £200,000 a year and above is spent on the drug in question, it is unlikely that parallel imports would come within the purview of that scheme. The question whether we can benefit from cheaper drugs sold through pharmacists will depend on how far one can squeeze something extra out of the pharmacists. All experience suggests that any difference between the home price and the parallel imported price would be absorbed by the manufacturer and the importer.

Mrs. Dunwoody

If the Minister is not convinced that there will be a saving to the NHS from that sort of change, will he not look at generic prescribing to see whether he cannot do something positive about the drugs bill inside the Service?

Mr. Jenkin

I remain quite unconvinced that it would be to the advantage of patients that the doctors' freedom to prescribe should be circumscribed in the way suggested by the hon. Lady.

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