Finian McGrath (Dublin North Central, Independent)
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Question 230: To ask the Minister for Health and Children if she will resolve a matter (details supplied). [11237/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 230 and 366 together.

The reduction in the wholesale mark-up paid on the price of drugs and medicines under the GMS and community drugs schemes is part of a process aimed at reforming all aspects of the drugs supply chain from the manufacturer to the patient. The existing wholesale mark-up in the range of 15% to 17.6% is neither reasonable nor sustainable. The Government supports the HSE's decision to pay an 8% mark-up from 1 March, and 7% from 1 January 2009 which will be applied by reducing the reimbursement price paid to community pharmacy contractors from those dates.

In response to demands from community pharmacists to address the alleged impact of the new wholesale pricing arrangements on GMS dependent pharmacies in particular, the HSE has offered a voluntary interim contract with a flat rate dispensing fee of not less than €5 for all dispensing made on the GMS and community drug schemes.

I have established an Independent Body to assess an interim, fair community pharmacy dispensing fee of at least €5 to be paid for the medical card scheme, the DPS and other community drug schemes. This Body is being chaired by Seán Dorgan, former Head of IDA Ireland. It has been asked to make its recommendations by the end of May 2008.

Based on its consideration of submissions received and its own independent evaluation, the Body will recommend an appropriate dispensing fee that would, in its view, represent a fair and reasonable price to be paid for the pharmaceutical service currently being provided by community pharmacists to the HSE under the GMS and community drug schemes. If approved by Government, it will be backdated to the date from which any individual community pharmacist may choose to avail of the HSE's offer.

Accordingly, each community pharmacist will have three options: to avail of the interim contract as recently offered by the HSE; to accept the interim contract upon the report of the Independent Body; or to stay with the existing retail fee structure until the agreement of a substantive new contract.

I believe this provides all concerned with a reasonable way to make the transition to a fair and transparent method of payment for present services and, I hope, greatly developed pharmacy services in the near future.

While a number of community pharmacies have indicated their intention to withdraw services under their contracts with the HSE, I understand that no contractor has formally withdrawn their services at this point. There are no changes planned to the operation of the GMS and community drugs schemes and all patients continue to receive their entitlements in the usual way.