Concern at new drugs exemption

Press, 2 August 1989, Page 2

Concern at new drugs exemption

BRENDON BURNS

in Wellington

The Government has exempted itself from the controls which maintain standards on pharmaceuticals imported into New Zealand.

In a Budget announcement, already legislated, the Government has allowed itself the right to import pharmaceuticals directly. 7.. The move is seen as another step in its longrunning attempt to reduce drug costs. What has raised the eyebrows of the pharmaceutical industry and observers is the Government exempting itself from the provisions of the Medicines Act.

The act covers quality and standards for pharmaceuticals. The chief executive of the Researched Medicine Industries Association, Mr Bill McLaughlan, said the industry was concerned at the powers the Government was giving itself. “It reads to be a yery Draconian measure,” he

said. The legislative change would allow the Government to cut across intellectual copyright on pharmaceuticals, said Mr McLaughlan. He considered the move was a big stick being waved in an attempt to pull down drug prices. If drugs were bought, there was the risk that their quality would not rdach New Zealand standards.

“They’re obviously betting on the fact that other countries have standards equal to New Zealand.” The Minister of Health, Ms Clark, issued a written statement in response to inquiries by “The Press.” She said the Government had exempted itself from the requirements governing pharmaceutical imports to ensure that drugs were available at the cheapest cost to taxpayers. Ms Clark said the Medicines Act required detailed information on formulation and testing specifications, as well as certificates of testing for each

batch. “Currently manufacturers and importers will not generally supply the information required under the Act to other than their own agents,” she said.

Ms Clark said this gave a monopoly supply position and the Government, as generally the sole purchaser, must pay the .asking price or impose a; part charge on This new move will allow the products t(j. be imported at a cheaper price without any s threat to standards. 4 A spokeswoman for Ms Clark said approval would be required from the Director-General of Health for any drug imported by the Government.

Mr McLaughlan doubted that the Government would be able to buy reputable pharmaceuticals, as these were generally subject to agreements with New Zealand importers.

“I guess it will be a matter of seeing how successful they are,” he said.