Brett Mason (Queensland, Liberal Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Hansard source

The department’s website is www.health.gov.au/ausfta and that contains information about the Medical Working Group and its second meeting. As agreed with the United States, the department has made the following two documents publicly available at its website: standard operating procedures, which cover the group’s composition, chair arrangements and meeting procedures; and a joint statement following the meeting on 30 April 2007. We can expect an agenda to go up shortly.

I will take the opportunity while I am up to speak briefly on the amendments proposed by the government, which we have not specifically done and Senator Brown drew that to my attention. I will take the opportunity to do that right now. I would not want to disappoint Senator Moore. The amendments, which I understand were moved by my colleague Senator Brandis on behalf of the government, relate to a recommendation from the Senate Standing Committee on Community Affairs for the pricing of single-brand combination items. Where single-brand combination items provide no additional health benefits over their component drugs, the current arrangements for the pricing of these items will continue to apply. However, there may be cases where a combination item provides significant health benefits compared to alternative therapies. The bill as proposed does not allow these benefits to be taken into account when the prices of component drugs are reduced following statutory price reductions. The amendments will enable the Minister for Health and Ageing to take into account the advice of the Pharmaceutical Benefits Advisory Committee on whether a combination item has advantages over alternative therapies. The PBAC will be required to consider evidence of significant improvements in compliance efficacy or reduced toxicity associated with a combination item compared to alternative therapies. Where the PBAC provides this advice, the minister may decide not to flow on some or all of the price reductions for the component drugs to the combination item. There is also a technical amendment to the bill to correct a drafting error where the expression ‘reduction day’ was used instead of ‘determination day’.

Finally, I would like to thank the committee for its prompt and thorough handling of the inquiry into the bill and record the government’s support for the other recommendations made by the committee. These relate to the minister reporting to the Senate 12 months after the implementation of the reforms on their impact, particularly on the cost of medicines to consumers, and the Department of Health and Ageing making publicly available information on outcomes of the processes being employed to affect the changes contained in the bill. These recommendations will be implemented according to the committee’s recommendations. I did note Senator McLucas’s and Senator Moore’s comments about the short time frame for this committee. That is a pity. Having served as chair of a committee that had to put through a report in very quick time, I understand the enormous frustrations of that.