§ 1987. Mr. Michael MorrisTo ask the Secretary of State for Health how many companies have not agreed their annual financial return under the PPRS for the following years(a) before 1985, (b) 1985, (c) 1986 and (d)
§ Mr. MellorThe number of annual financial returns under the pharmaceutical price regulation scheme not yet cleared for each of the years concerned is as follows:
Number pre 1985 1 1985 3 1986 6 1987 28
§ Mr. Michael MorrisTo ask the Secretary of State for Health to what extent, in settling pharmaceutical company annual financial returns under the PPRS, he is taking into consideration the general return to British industry as reflected in the FT 500 index or comparable index.
§ Mr. MellorThe renegotiation of the pharmaceutical price regulation scheme in 1986 included agreement on percentage rates of return on capital employed for the years 1986–87 and 1987–88. From 1988–89, the Department is required to review the rate of return each year on the basis of principles set out in the scheme. These include taking account of any "significant alterations since the last PPRS rate change in the underlying average return on capital of British industry as brought out for example in relevant changes in the FT 500 index." This requirement is being followed in the Department's operation of the scheme.
§ Mr. Michael MorrisTo ask the Secretary of State for Health how many pharmaceutical companies supplying the National Health Service have not applied for a price increase in each of the last five years.
§ Mr. MellorThe information requested, for companies providing full financial returns under the pharmaceutical price regulation scheme, is as follows:
Number 1984 29 1985 38 1986 37 1987 30 1988 31
§ Mr. Michael MorrisTo ask the Secretary of State for Health what was the indexed aggregate cost of National Health Service medicines supplied under the PPRS in relation to general inflation from 1986.
§ Mr. MellorWe do not have the information in the form requested.
332WThe table shows the indexed aggregate expenditure in NHS medicines in total in 1986–87 and 1987–88; this includes expenditure on generic drugs which are not covered by the PPRS.
1986–87 1987–88 Indexed aggregate expenditure on NHS medicines in total 100 110.7 Index of GDP deflator 100 105.3
§ Mr. Michael MorrisTo ask the Secretary of State for Health (1) what discussions have been and are taking place on amending the grey area of PPRS; when an interim review is scheduled; and if he will make a statement;
(2) what discussions have been and are taking place on amending the research and development allowance element of PPRS; when an interim review is scheduled; and if he will make a statement.
§ Mr. MellorThere have been discussions between officials of the Department and representatives of the pharmaceutical industry clarifying the Department's implementation of the provisions in the pharmaceutical price regulation scheme relating to "grey area" excess profits and research and development support arrangements. No amendments to the scheme's provisions are being considered. The scheme provides for either party to request a review "after not less than three years"—i.e. from October 1989.
§ Mr. Michael MorrisTo ask the Secretary of State for Health what was the total amount spent on drugs in the National Health Service per head of population for each year in the last 10 years.
§ Mr. MellorThe information requested is as follows:
Total expenditure on drugs in the NHS, per head of population Total 1978–79 17.22 1979–80 19.43 1980–81 23.26 1981–82 26.74 1982–83 30.59 1983–84 33.88 1984–85 36.39 1985–86 38.76 1986–87 41.42 1987–88 45.71
§ Mr. Michael MorrisTo ask the Secretary of State for Health what was the total amount spent on drugs in the National Health Service per head of population in real terms for each year in the last 10 years.
§ Mr. MellorThe information requested is as follows: 333W
Total expenditure on drugs in the NHS per head of population, at 1987–88 prices1 £ 1978–79 35.34 1979–80 34.11 1980–81 34.48 1981–82 36.09 1982–83 38.53 1983–84 40.81 1984–85 41.73 1985–86 42.17 1986–87 43.61 1987–88 45.71 1 Adjusted in line with the GDP deflator.
§ Mr. Michael MorrisTo ask the Secretary of State for Health what was the total amount spent on drugs in the National Health Service in real terms for the last 10 years.
§ Mr. MellorThe information requested is as follows:
Total expenditure on drugs in the NHS, at 1987–88 prices1 £ million 1978–79 1,648 1979–80 1,593 1980–81 1,613 1981–82 1,690 1982–83 1,803 1983–84 1,912 1984–85 1,959 1985–86 1,987 1986–87 2,061 1987–88 2,167 1 Adjusted in line with the GDP deflator.