HC Deb 25 March 1986 vol 94 c770
2. Mr. Michael Morris

asked the Secretary of State for Social Services what action he is proposing to take to stop unlicensed parallel drug imports.

Mr. Hayhoe

All such allegations are investigated fully. My Department is currently prosecuting two companies for alleged offences involving parallel imports. It is considering other cases where criminal proceedings will be taken if the evidence warrants this. Wholesale dealers have recently been warned that they also risk losing their licences if they market unlicensed medicinal products. Lists of parallel imported products which have been granted licences have been issued to help pharmacists identify products offered to them.

Mr. Morris

That is a reasonable beginning. Is my right hon. Friend aware that the number of scrips at present met by parallel imports is about 7 per cent.? The cost to the nation is just over £100 million and there is a loss to the Exchequer of about £30 million or £40 million in terms of remuneration to pharmacists, tax, and so on. Is he further aware that although only two companies have been prosecuted there is clear evidence that tens of companies are slapping labels on to certain products and producing other products of different colours and shapes? Should not more urgent action be taken by the Department to deal with this matter?

Mr. Hayhoe

If my hon. Friend has evidence, I hope that he will let my Department have it, and I hope that those who advise and give information to him about these matters will do likewise. My hon. Friend will realise that what was called the high discount scheme that was introduced by my predecessor was challenged and declared to be contrary to European law. My officials and I are urgently considering what further action may be possible to recover excessive discounts.

Sir Dudley Smith

Is my right hon. Friend aware that although he rightly demands the highest quality for the production and labelling of British medicines, he does not appear to be doing the same for foreign, imported products? Why not?.

Mr. Hayhoe

My hon. Friend is wrong to suggest that there is a reduction in the requirements relating to labelling and quality. I repeat that anybody who markets an imported, unlicensed medicine may be liable to prosecution for committing an offence under the Medicines Act 1985.