FIANNA FÁIL TDs have been told by Minister for Health Mary Harney that “An Bord Snip Nua” will recommend cuts close to €1 billion in the health budget.
Addressing the health committee of the Fianna Fáil parliamentary party on Wednesday, she warned TDs and Senators that unpalatable decisions would have to be made to cut the €16 billion cost of the health service.
The report of the Expenditure Review Committee, known as An Bord Snip Nua, is expected to be given to Minister for Finance Brian Lenihan on Monday and will go to Government later this month.
Some Fianna Fáil TDs have called for the report to be published before the summer holidays even though Government decisions on its implementation will not be made until the budgetary process begins in the autumn.
More than 30 Fianna Fáil TDs and Senators attended the meeting of the health committee to discuss the current row with pharmacists over the amount of taxpayers’ money being paid to subsidise the cost of drugs and medicines.
As an illustration of the kind of decisions that might have to be taken, Ms Harney told them that one of the recommendations of An Bord Snip Nua may involve the establishment of a tendering process for the distribution of subsidised drugs by pharmacists.
If adopted, just one pharmacy in each locality would dispense drugs and medicines to GMS patients and those involved in the refund of drugs schemes.
In response, TDs asked the Minister for reassurance that her figures relating to the row with pharmacists were right. They also wanted to know if there was a contingency plan if the row escalated.
A number of speakers also wanted a commitment that there would be no U-turn on the issue.
Speaking in the Dáil yesterday on the pharmacy issue, Ms Harney said €16 billion would be spent on the health service this year.
“We all know that this is an incredible amount of money, some 40 per cent of the tax we will raise during 2009. Since 2002, the cost to the State of pharmacy services has doubled. No other professional group in Ireland has had its fees from the State double or anything near it.”
The Minister added that it had been acknowledged that the State was spending €640 million to get €1 billion worth of product from the factory to the patients in the community. “By any standards that is excessive. In 2008 we gave €440 million by way of mark-up and fees and almost €200 million as the wholesale margin,” she said.
“The fact is that we have major pressures in our public health service. Since 2001 the Brennan commission has recommended change in this area. In the meantime, since 2002, pharmacy fees have doubled and that is not sustainable.”