Consumer Affairs Minister Heather Roy hopes to revisit a Bill that would make Government drug-buying agency Pharmac subject to the Commerce Act and competition, to help broaden accessibility to suitable medicine at the lowest possible cost.
Mrs Roy's NZ Public Health and Disability (Enhancement of Competition) Amendment Bill was defeated in 2006 by the Clark government, although with Act New Zealand, National, United Future and the Maori Party all supporting it. Those parties are now part of the Government, encouraging Mrs Roy to consider reintroducing the Bill. She is the deputy leader of Act New Zealand.
She was heartened by the decision last week by Prime Minister John Key to confirm that a full 12-month course of the drug Herceptin would be made available to New Zealand breast cancer sufferers. However, the Herceptin problem was part of a much wider issue - the monopoly Pharmac holds over the supply and distribution of drugs and medications to the country.
Pharmac was established with cross-party support in 1993 to control pharmaceutical costs and was granted an exemption from competition laws to purchase pharmaceuticals for the four regional health authorities.
"This was considered necessary to allow regional health authorities to purchase medicines at the same prices."
Pharmac was later taken over by a single health funding authority but the Commerce Act exemption remained, she said.
The scope of that exemption gave Pharmac carte blanche in its commercial dealings. It now has a monopoly on the purchase and supply of pharmaceuticals and it decides what medicines are subsidised, negotiates prices with manufacturers and operates other cost-control strategies.
"Although there have been cost savings, this lack of competition has led to a lack of choice for consumers. As seen with Herceptin, Pharmac called the shots and New Zealanders had to `like it or lump it'," Mrs Roy said.
