Transtasman drug agency plan takes a knock

By KEVIN TAYLOR

A plan for a joint agency with Australia to regulate drugs and alternative medicines has received another knockback from a parliamentary select committee.

But the Government is confident it can marshal the votes to pass the necessary legislation.

The health committee has recommended the Government not proceed with the joint therapeutics agency unless a raft of points are addressed in yet-to-be tabled legislation.

The committee has reported on a treaty the Government signed last December with the Australian Government establishing the agency from July 1, 2005.

Health Minister Annette King said she had seen the committee's 13 recommendations and had no problems with any of them.

She said she was confident of getting the numbers required to pass the legislation needed to set up the agency.

Just days before the treaty was signed in December, the committee issued a report unanimously recommending the Government not proceed with the agency following concerns from the dietary supplements and alternative medicines industry about the new body's impact.

In recent weeks MPs have become concerned that the agency may have wider impacts than just on the alternative medicines industry. This followed Pharmac warnings that access to cheaper generic drugs may be restricted and their cost may rise under the agency.

A Pharmac memo released by the Green Party said the agency would favour the drug industry at the expense of New Zealanders' access to medicines and "to the detriment of patient safety".

The January memo to Pharmac's board also warned of a "massive escalation" in the cost of registering generic drugs - from $8000 to more than $100,000 an approval.

The committee's 13 recommendations included resolving concerns about accountability arrangements, the powers of the agency's managing director, the comprehensiveness of the legislation, and parliamentary oversight.

But United Future, the Greens, National, Act and NZ First all wrote minority reports expressing even stronger concerns.

But Ms King said she was prepared to take the committee's recommendations seriously and there was "nothing the Government would have difficulty with" in them.

Asked about Pharmac's warnings, Ms King said it had not known the details of the agency.

Pharmac and the Health Ministry were working through the issues and "most of their issues are going to be addressed".

The drugs industry said it supported the new agency. Researched Medicines Industry Association chief executive Lesley Clarke said it would provide companies with a single point-of-entry to Australasia for new and innovative medicines.