HL Deb 26 November 1998 vol 595 c3WA
Baroness Lockwood

asked Her Majesty's Government:

What arrangements they will make to ensure compliance with the renegotiated Pharmaceutical Price Regulation Scheme. [HL64]

The Parliamentary Under-Secretary of State, Department of Health (Baroness Hayman)

The Pharmaceutical Price Regulation Scheme has existed for over forty years, and is designed to provide reasonable prices for the National Health Service and fair rates of return for the pharmaceutical companies who supply the NHS. The Government remain committed to these objectives, and are currently renegotiating the Pharmaceutical Price Regulation Scheme with representatives of the pharmaceutical industry.

The Government regret that there is increasing non-compliance by a limited number of companies with the current voluntary agreement. This is adding to the NHS drugs bill at the expense of other NHS treatment and care. In these circumstances the Government have concluded that to ensure full compliance with a new agreement it will be necessary to take reserve powers in the forthcoming NHS Bill. These will make it possible to secure the compliance of any companies which might in future choose not to abide by the voluntary agreement.