HL Deb 07 March 1968 vol 289 cc1419-20
THE LORD BISHOP OF WORCESTER

My Lords, I beg to ask the Question which stands in the name of my right reverend Brother the Bishop of Norwich.

[The Question was as follows:

To ask Her Majesty's Government whether any action has been taken, or is contemplated, to limit the rapid rise in prices charged for many proprietary drugs and medicines.]

THE MINISTER OF STATE, BOARD OF TRADE (LORD BROWN)

My Lords, the prices of ethical proprietary drugs and medicines are subject to the Voluntary Price Regulation Scheme agreed between the Health Departments and the Association of British Pharmaceutical Industry. The Board of Trade has discussed prices of other proprietary medicines, namely, those sold to the public for self-medication, with the Proprietary Association of Great Britain and with individual manufacturers. The industry has been urged to restrain price increases in accordance with the criteria set out in Government statements on prices and incomes policy. Her Majesty's Government keep a close watch on price movements of proprietary drugs and medicines.

THE LORD BISHOP OF WORCESTER

My Lords, I thank the noble Lord.

LORD OGMORE

My Lords, while declaring an interest as a director of a research-based pharmaceutical company, may I ask the noble Lord whether it is not the fact that the price to the National Health Service of the leading branded prescriptions has been falling for years at the rate, approximately, of 4 per cent. per annum?

LORD BROWN

My Lords, I do not have the precise figures of the rate at which they have fallen. I think the noble Lord is referring to ethical drugs; and there have been reductions in the price of those. I have taken the question of the right reverend Prelate to refer to the other type of drugs.

LORD SEGAL

My Lords, is the noble Lord aware that, as revealed by the Sainsbury Committees, three large drug firms have admitted to profits of over 50 per cent. and does he not agree that that is an instance of gross profiteering at the expense of the unfortunate taxpayer?

LORD BROWN

My Lords, I think that the question of individual profits of the drug firms is rather a different issue. I should be glad if the noble Lord were to put down a Question on that subject.

LORD SOMERS

My Lords, is it not a fact that proprietary drugs cannot be put down on National Health prescriptions and that therefore very many aged, chronic cases will suffer from the increase of prices?

LORD BROWN

The noble Lord is putting me in some difficulty. The Board of Trade is responsible for dealing with price-rises of proprietary drugs and another Ministry is responsible for dealing with ethical drugs. I am not sure whether the noble Lord's comments are true or not, but I will get an answer to him in writing.

LORD PARGITER

My Lords, would my noble friend not agree that the sale of proprietary drugs of this type very often depends on excessive advertising? Can he say whether any limitation could be placed on it?

LORD BROWN

My Lords, no doubt the advertising is substantial. I am not in a position to comment as to whether it is excessive or not.

LORD OGMORE

My Lords, will the noble Lord make it clear that, so far as ethical drugs are concerned—that is, drugs obtainable on prescription—manufacturers are not allowed to advertise except to the medical profession?

LORD BROWN

That is so, my Lords.

LORD SEGAL

My Lords, is my noble friend aware that up to 10 per cent. could be saved on the drug bill by some restriction of the sales promotion methods of many of the drug firms, and especially by restricting the number of interview representatives, whose activities are resented by a very large number of doctors?

LORD BROWN

My Lords, this series of questions is getting outside the terms of the original Question. I think we might let the matter rest here.