§ Mr. Hickmetasked the Secretary of State for Social Services, pursuant to the reply of 25 March, Official Report, column 96, what steps his Department takes to ascertain whether companies within the pharmaceutical price regulation scheme have exceededed the sales promotion limit; how many companies exceed it within the last year for which figures are available; and if he will identify them giving the amount of excess in each case.
§ Mr. Kenneth ClarkeSales promotion expenditure is included in the financial returns sent to us and reported on by company auditors. In 1982, 51 larger companies exceeded their sales promotion limit. We treated this excess as profit forgone. We have now introduced a new provision whereby from 1 April 1984 companies have also to pay to us a sum equivalent to any excess. For reasons of commercial confidence we do not identify individual company results.
§ Mr. Hickmetasked the Secretary of State for Social Services what steps he takes to control distribution and administration costs of companies within the pharmaceutical price regulation scheme; what they comprise; whether he has any plans to investigate the same; and if he will make a statement.
§ Mr. Kenneth ClarkeAll costs are included in the financial returns sent to us and reported on by company auditors. These are accepted only if we believe them to be reasonable and we can and do disallow any thought to be excessive. Distribution includes expenses of warehousing, storage and transport. Administration covers items such as Directors' and Headquarters salaries, rent, rates and other office expenses.