Decisions on the funding of life-saving drugs should not be made by the Government or by ministerial order, Taoiseach Enda Kenny told the Dáil.

“They have to be made through the National Centre of Pharmacoeconomics, which makes clinical decisions on the basis of a determination of the value and benefit of drugs for patients who can avail of them,” he added.

Mr Kenny said he understood a price could not be put on a life, adding more high- cost treatment drugs were continually coming out.

"Like other countries, Ireland needs to ensure those patients who could benefit most have priority access to emerging high-cost treatments," he added. "At the same time, we must ensure the drugs are affordable to the taxpayer."

The Taoiseach was replying to Fianna Fáil leader Micheál Martin, who said the situation regarding the approval of life- saving drugs was unacceptable. It had come into the public domain again in the past week, particularly in the case of three drugs, Pembro, Nivo and Ibrutinib, he added.

Pembro, he said, had an astonishing affect on the treatment of melanomas and the prospects for its affect on lung and kidney cancer were also exciting, something to which most oncologists would testify.

Mr Martin said there had been an unacceptable delay in approving the drugs, given the pharmacoeconomic unit had approved them in February. His understanding was the relevant group within the Health Service Executive was not due to meet until this month, although, to be fair to Minister for Health Simon Harris, he had brought it forward to this week, he added.

“The compassionate access programme has been closed and it now only applies to existing patients,” he added.

Mr Martin suggested the establishment of a ring-fenced fund that could be top-sliced from overall Government expenditure.

If 0.4 per cent were taken from it, about €200 million could be put into a separate fund annually, he added.

He said the fund could be built up and used to deal with new technologies and drugs.

“Such an approach would have a real impact from a policy perspective,” Mr Martin added. Alternatively, the proposed sugar tax could be used to finance such a fund.”

Mr Kenny said the State paid out €1.7 billion on drugs every year and that figure could grow by about €400 million in the coming years.

“There is always an analysis that has to be carried out,” he added.