§ Mr. Hickmetasked the Secretary of State for Social Services (1) pursuant to the reply of 14 March, Official Report, column 243, what was the total value of the discount on drugs costs from wholesalers and manufacturers given to dispensing doctors in the last year for which figures are available; and what savings would be made to the National Health Service as a whole if a similar level of discounts were given by drugs wholesalers and manufacturers to all purchases of drugs by or on behalf of the National Health Service;
(2) pursuant to the reply of 25 February, Official Report, column 71, whether discounts will continue to be available on drugs dispensed by dispensing doctors after 1 April; whether similar discounts are offered by drugs wholesalers and manufacturers to all or any other purchases of drugs by the National Health Service; and if he will make a statement.
§ Mr. Kenneth Clarke[pursuant to his reply, 4 April 1985, c. 768–69]: Doctors buy many of their drugs from 160W wholesalers and retail pharmacists but also purchase from manufacturers who may give very high discount. The dispensing doctors' discount inquiry which sampled purchases for the months of April to June 1983 identified that on average discount of 4.93 per cent. was obtained on purchases from all sources. The total value of savings to the National Health Service because of discount on drugs supplied by doctors in Great Britain in 1983–84 would have been about £4 million.
On the basis of an inquiry in 1981, it was assumed that pharmacist contractors received discounts averaging 5.96 per cent. The total value of discount on National Health Service drugs supplied by pharmacists in England and Wales in 1983–84 was £71 million, representing a saving to the National Health Service. Since that inquiry some pharmacists have been able to obtain larger discounts than those included in the existing arrangements on their purchases of drugs from wholesalers. From 1 January 1985 an endorsement scheme designed to take into account these higher discounts has been introduced. Any savings which accrue will also be to the benefit of the National Health Service.
Regional health authorities negotiate contracts with drug manufacturers and wholesalers including discount as appropriate. Details of local contracts are not available centrally, but I am glad to say that many health authorities negotiate very favourable contracts.
I have no reason to believe that discounts will not continue to be available to dispensing doctors after 1 April.