§ Mrs. Faithasked the Secretary of State for Social Services what evidence he has received that some manufacturers are undermining the pharmaceutical prices regulation scheme by introducing reduced discounts to pharmaceutical wholesalers: what estimate his Department has made of the additional cost to the National Health Service of the increase in notional prices which wholesalers are now compelled to charge in order to maintain the level of service necessary to the discharge of retail chemists of their National Health Service commitments to the public; and if he will take action to remedy the situation.
§ Sir George YoungI am aware that some manufacturers have reduced the discounts they allow to pharmaceutical wholesalers, but the operation of the pharmaceutical price regulation scheme, which takes into account the net value of manufacturers' sales. is not affected by such changes. The Department is not in a position to estimate the cost to the National Health Service of the introduction of notional prices by some pharmaceutical wholesalers, nor can I accept that they are compelled to charge these prices for the reasons indicated in the question. However, the Department is aware of the problems arising from notional pricing and is taking steps to attempt to restore a more orderly arrangement.