Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

My question is to the minister representing the Minister for Health. I refer to the damning report by the Australian National Audit Office into the Fifth Community Pharmacy Agreement. The Minister for Health has said, to her credit, that answers are needed into:

… serious questions about a lack of transparency, as well as maladministration, relating to the $15 billion Fifth Community Pharmacy Agreement …

Given the alarming finding that the Department of Health did not keep records of negotiations with the guild, even though $15 billion of taxpayer funds were at stake, and that there is no mechanism to measure the effectiveness of services delivered under the agreement, will the government now commit to holding a full public inquiry into the Fifth Community Pharmacy Agreement?

Fiona Nash (NSW, National Party, Assistant Minister for Health) Share this | Link to this | Hansard source

The last part of that very long question would be a matter for the senior minister. But what I can indicate to the chamber is that the report the senator refers to has a number of recommendations on how the future administration and negotiation of the agreement could be improved. My understanding is that the department has accepted all the recommendations and my understanding is also that the department has already: implemented a new recording framework to capture key decisions throughout the anticipated negotiations; put in place risk and probity plans that will address concerns raised in the report; reviewed and modified the financial forecasting systems so that cost impacts to government and patients can be separately reported; and commenced planning for new performance and financial reporting to improve the transparency of future agreements such as future reporting on the major cost components of pharmacy remuneration.

The senator would well understand that currently those negotiations for the sixth pharmacy agreement are underway and the minister is ensuring that she is consulting widely to ensure that we indeed get the best outcome for all concerned.

Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given that the department cannot account for the many flaws, failings and administrative mismanagement in the $15 billion community pharmacy agreement, will the government agree to pause the signing of the sixth community pharmacy agreement until the mismanagement of the current agreement is independently investigated?

Fiona Nash (NSW, National Party, Assistant Minister for Health) Share this | Link to this | Hansard source

That would be a matter for the minister to consider, but I do understand that she has asked the department to take into account the findings of the ANAO as well as the findings of evaluation processes undertaken as part of the fifth CPA in these consultation processes and in the subsequent policy and program development. I think it is very obvious that the minister has taken into account the findings from the ANAO. Indeed, I outlined in my earlier answer the things that have been already undertaken by the department. And the minister will continue to progress the negotiations for the sixth CPA.

Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Minister, given that the Department of Health reallocated funds without prior ministerial approval, and given their inability to account for money given as grants to the Pharmacy Guild, including the unexplained transfer of $277 million to the guild, how can the public have any confidence in the existing community pharmacy agreement, or in any future agreements, until this agreement is formally investigated?

Fiona Nash (NSW, National Party, Assistant Minister for Health) Share this | Link to this | Hansard source

Those out in the community can certainly have confidence in what the government is doing in relation to these negotiations—

Opposition Senators:

Opposition senators interjecting—

Fiona Nash (NSW, National Party, Assistant Minister for Health) Share this | Link to this | Hansard source

While there are some interjections from the other side, I can say that those out in the community have far more confidence in this government than they did in the previous government when it comes to health outcomes. Certainly they can take confidence in the wide-ranging consultations that the minister is undertaking with a number of stakeholders to ensure that the outcome is balanced and responsible and that we do ensure we get those best outcomes right across the sector. Indeed, as I indicated in my previous answers, the minister has taken into account the ANAO report very well. As I have said, I have outlined the undertakings already being done by the department, and clearly the minister is considering this issue very carefully.