§ Mr. Murphyasked the Secretary of State for Social Services (1) what recent representations he has received from the pharmaceutical industry subsequent to the statement to the House of 8 December regarding the price regulation scheme; and if he will make a statement;
492W(2) if he will make a statement of Government policy with regard to sponsorship and investment encouragement by his Department with respect to the pharmaceutical industry.
§ Mr. Kenneth ClarkeA number of pharmaceutical companies have complained about the severity of the cuts in profitability and especially the effect of the new sales promotion rules. But as I said in my statement on 8 December 1983 at c. 477–87, in framing the proposals the Government sought to achieve a balance between the interests of the NHS as customer and the interests of the pharmaceutical industry. We recognise the achievements of the industry and the contribution it makes to the UK economy and we want to see it continue to flourish. We have retained in the price regulation scheme incentives to companies to carry out their research and manufacturing in this country.