HC Deb 22 November 1999 vol 339 cc30-1W
Mr. Swayne

To ask the Secretary of State for Health if he will list the drugs for which he proposes to set a maximum price using powers under the Health Act 1999; and if orders will be preceded by a period of consultation. [98753]

Mr. Denham

The powers to control prices of National Health Service medicines are contained in sections 33 and 34 of the Health Act 1999. Section 33 may be used where there is a voluntary scheme, such as the new Pharmaceutical Price Regulation Scheme, to limit the prices charged by members of such a scheme. There are no proposals to set any maximum prices under this provision. The powers in section 34 may be used only in respect of those suppliers and manufacturers who elect not to become members of a voluntary scheme.

A formal consultation with the industry body as required by the Health Act has been completed with the Association of British Pharmaceutical Industry. In addition, we are also consulting the Association of Pharmaceutical Importers and the British Association of Pharmaceutical Wholesalers. We will be introducing secondary legislation to give effect to the powers contained in section 34 of the Health Act 1999. Such powers will ensure equity of treatment for those companies who choose to join the 1999 PPRS and those who do not.

So far all but two companies affected by the price reduction in the voluntary scheme have elected to join the 1999 PPRS. It remains open to those companies to change their elections and join the 1999 PPRS. Otherwise they will be subject to the provisions of the statutory price control measures which will be introduced.

Statutory powers to control NHS prices are not in place and it is not certain which, if any, companies will be subject to them. In the case of a company falling within such powers there will be additional consultation with the company. Therefore I am unable to list the drugs which would be affected by any statutory price control. If specific drugs do become subject to statutory price control then we will publish the details of those drugs at the earliest opportunity.