§ Mr. Geoffrey Thomasasked the Secretary of State for Social Services what discusions she is having with the pharmaceutical industry; and if she will make a statement.
§ Dr. OwenI met representatives of the Association of the British Pharmaceutical Industry (Prescription Medicines) and of the Proprietary Association of Great Britain (Household Medicines) on 21st November.
I discussed with both associations plans for a comprehensive review of the safety, quality and efficiency of existing medicinal products. I also informed them that I was seeking the advice of the Medicines Commission about the content and standard of advertisements of medicines and about the best ways of keeping doctors informed about medicines.
I discussed with the ABPI various matters concerning prices of medicines. I informed it of my concern about levels of sales promotion expenditure. The Department has sought to reduce these levels but overall expenditure has remained constant. I told it that I understood the feelings of companies that they could not individually make substantial reductions in these expenditures without risking the loss of ground to their competitors, but that I believed that the time had come for urgent action to economise in this. I wished therefore to discuss with the industry the proposition that sales promotion of home business should be substantially reduced overall.
As to prices and profits I noted that the present Voluntary Price Regulation Scheme had reduced profits from the higher levels of profit which were so open to criticism in the past. I told the ABPI that I was not convinced that the existing statutory powers, which at present stand behind the VPRS, were sufficient to ensure that we can continue to exercise properly the necessary control. I said that I wanted to consider what further statutory powers might be required.
I told the ABPI that the Government attached considerable importance to there being the fullest consultation with them at all stages in the consideration of these matters.