§ LORD KILLEARNasked Her Majesty's Government:
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- 1. By what percentage the prices of the main categories of pharmaceutical supplies both ethical and proprietary, have risen in the past month, six months and year;
- 2. How many of the products which have risen most are imported from the E.E.C., from Switzerland or from the U.S.A.;
- 3. Whether they are satisfied with the degree of control over products dispensed against prescription by retail chemists;
- 4. Whether any further action is contemplated to restrain excessive price increases by foreign and domestic manufacturers.
- 1. In 1973 price reductions and price increases for ethical branded medicines, accounting for 95 per cent. of the 1972 total of £180 million estimated wholesale price of sales to the National Health Service, and including changes to be effective in December, were each worth approximately £5 million in a full year, so that the net percentage effect is nil. For the last six months of the year the comparable figures are £1.3 million price reductions and £4.4 million price increases, and for December £1.2 million price increases. An analysis by therapeutic groups is not readily available, nor is information about the remaining five per cent. of ethical medicines or about proprietary medicines.
- 2. Taking major ethical branded products with annual sales over £150,000 to the National Health Service, there have been significant increases in 12 products imported from the E.E.C., seven from Switzerland and none from the U.S.A.
- 3 and 4. Under the provisions of the Voluntary Price Regulation Scheme price increases on ethical products with substantial annual sales to the National Health Service need the prior approval of the Department. Price increases on other ethical products are monitored through annual financial returns received from the companies. Her Majesty's Government are satisfied that these arrangements provide a suitable means of regulating the prices of ethical medicines supplied to the U.K. prescription market and that these arrangements should continue in Stage 3 of the Counter-Inflation Programme. Prices of proprietary medicines are subject to the Price Code.