§ Mr. Hancockasked the Secretary of State for Social Services if he will estimate how many jobs will be lost in the British pharmaceutical industry as a result of the introduction of limited list prescribing.
§ Mr. Kenneth ClarkeThe extent of any job losses will depend on how well companies are able to recoup in other ways lost sales to the National Health Service.
§ Mr. Michael Morrisasked the Secretary of State for Social Services why there was no prior consultation on the limited list proposals with the pharmaceutical industry.
§ Mr. Kenneth ClarkeMy right hon. Friend's statement on 8 November, at columns 226–228, conveyed the Government's commitment to the principle of a limited list. We are, however, consulting on the practical application of that principle.
§ Mr. Michael Morrisasked the Secretary of State for Social Services (1) what prior evaluation was made of the effect of the announcement of a limited list on the investment plans of pharmaceutical companies;
(2) which pharmaceutical companies are affected by the limited list; and what is the anticipated saving from each;
(3) what calculations have been made of the likely reduction in research and development by pharmaceutical companies arising from his limited list proposals.
§ Mr. Kenneth ClarkeAny decisions we take about the purchase of medicines by the National Health Service are bound to affect companies' sales and the various activities dependent on those sales. From information available to us we were able to indentify the companies whose sales were most at risk as a result of our decision to introduce a limited list of medicines prescribable under the NHS. The actual impact on each company will, however, depend on a number of factors, including the final shape of the proposals and the extent to which the company is able to recoup its lost NHS sales revenue from over-the-counter sales and other sources.
§ Mr. Hancockasked the Secretary of State for Social Services if he will make arrangements to allow companies with excluded products under limited list prescription to increase prices on other products covered by the pharmaceutical price regulation scheme.
§ Mr. Kenneth ClarkeNot automatically or as a matter of course. The profit allowed to a company under the pharmaceutical price regulation scheme is based on a return on capital employed in producing medicines for the National Health Service. If a company loses NHS sales because of the limited list proposals, its capital employed, costs and allowable profit will all be reduced. In some cases this may result in actual profit falling below target, and price increases may be sought. If so, we will consider those applications in the usual way.
We are, of course, intending to make further savings as a result of our review of the PPRS, over and above the savings which will be achieved by the introduction of the 167W limited list. I am about to start discussions with the representatives of the industry on the operation of the scheme.
§ Mr. Hancockasked the Secretary of State for Social Services what steps his Department will take to seek to prevent doctors who presently prescribe inexpensive drugs which will not be on the limited list from prescribing instead more expensive drugs which remain available on prescription, following the implementation of limited list prescription.
§ Mr. Kenneth ClarkeWe would not expect many, if any, doctors to be so irresponsible as to provide expensive drugs unnecessarily when cheaper and equally effective drugs will be available to them on the new limited list. However, the present system of prescription monitoring will identify any significant variation in prescribing practices or costs. Our Department's regional medical officers will continue, for the time being, to undertake visits to practitioners as necessary to discuss changes in prescribing habits.
§ Mr. Hancockasked the Secretary of State for Social Services if he has any plans to extend the number of benzodiazepine drugs available under limited list prescription.
§ Mr. Kenneth ClarkeThe final list of drugs to remain available on the National Health Service in each of the groups covered by the limited list proposals will not be determined until consultation with the professions and industry is complete.