Stewart Barbara: Questions for Oral Answer — Questions to Ministers 
Stewart Barbara: Questions for Oral Answer — Questions to Ministers 
[Volume:628;Page:602] 
2.  
BARBARA STEWART (NZ First) 
 to the  
Minister of Health 
: Is he concerned at the growing disparity in Government expenditure on pharmaceuticals between New Zealand and Australia which now spends more than twice the amount per capita on pharmaceuticals that New Zealand does; if not why not? 
Hon PETE HODGSON (Minister of Health) 
: 
 No I am not. Australia spends more money on pharmaceuticals than does New Zealand but New Zealand and Australian drug volumes are broadly equivalent—the reason being that New Zealand’s drug purchasing is more cost-effective. Last year for example drug volumes in New Zealand rose by about 11 percent whereas costs rose by only about half that amount thus allowing precious health dollars to be spent elsewhere. 
Barbara Stewart 
: Does he think that New Zealand’s proposed increase in pharmaceutical investment of $11.85 per person over the next few years is adequate when compared with Australia’s proposed increase of $50 per person and when taking into account that an ageing population will inevitably require more medications; and is he committed to closing that gap in funding or will it continue to widen? 
Hon PETE HODGSON 
: I suspect that the member is a little out of date. Yesterday the Australian federal health Minister said that the Government wants to save up to $850 million a year in Australia—a figure that is much higher than New Zealand’s entire drug budget. 
Ann Hartley 
: Does the Government have any aspects of drug expenditure under review; if so why? 
Hon PETE HODGSON 
: Yes we do. As a result of our confidence and supply agreement with the United Future party a long-term medicine strategy project is now being undertaken by the Associate Minister of Health Peter Dunne. I am delighted that New Zealand First apparently is showing interest in that area of endeavour as well. 
Jo Goodhew 
: Will the Minister allow the patients to come forward to tell their stories about how their lives have been damaged by the Government’s medicines policy or will he continue to shut those people out of the ministry’s in-house deliberations? 
Hon PETE HODGSON 
: I shut nobody out of anything so long as my diary fits. 
Sue Kedgley 
: Does he share the concerns of the previous Minister of Health that the direct marketing of pharmaceuticals to consumers—which of course happens only in New Zealand and the United States—is driving up the demand for pharmaceuticals that are still under patent and exposing a greater number of people to the risk of adverse effects from pharmaceuticals; and will he therefore take steps to curtail the direct-to-consumer marketing of pharmaceuticals as the previous Minister promised publicly she would do back in 2003? 
Hon PETE HODGSON 
: The member may be aware that the Government’s approach to direct-to-consumer advertising is to resolve those matters in a trans-Tasman forum. 
Hon Peter Dunne 
: Does the Minister concur with the view that one of the reasons that lies behind the proposed national medicine strategy is to ensure not only the ongoing quality usage of pharmaceuticals but also to ensure that the issues addressed by the member asking the primary question regarding price and other forms of availability are factored into national policy so it does not just come down to a strict rationing decision? 
Hon PETE HODGSON 
: Precisely. 
Barbara Stewart 
: Is the Minister aware that in the 18 months to May 2005 the Australian Government listed 38 new drug subsidies on its pharmaceutical schedule against nine in this country and if so what action does he intend to take to improve the availability of new drugs to New Zealanders? 
Hon PETE HODGSON 
: The member may not be aware of a bunch of press statements that came out from Pharmac yesterday as a result of its annual report but it is a matter of fact that there are more products on the New Zealand drug schedule than there are on the Australian schedule.