Blue Jackie: Questions for Oral Answer — Questions to Ministers Urgent Questions 
Blue Jackie: Questions for Oral Answer — Questions to Ministers Urgent Questions 
[Volume:638;Page:8102] 
12.  
Dr JACKIE BLUE (National) 
 to the  
Minister of Health 
: What market analysis and consultation if any was undertaken by district health boards in the development of the proposed pharmacy contract? 
Hon PETE HODGSON (Minister of Health) 
: 
 I am advised that district health boards and the Pharmacy Guild consulted on the contract for much of last year. As part of that process district health boards sought cost information from the pharmacy sector. 
Dr Jackie Blue 
: Why does the Minister think that the vast majority of pharmacies consider the proposed pharmacy contract to be unacceptable with 91 percent rejecting the “take it or leave it” stance by the district health boards; and does he consider that the district health boards have employed good-faith negotiating principles? 
Hon PETE HODGSON 
: Presumably because the pharmacy industry if you will wanted a price increase. Revenue increases for pharmacies come in two forms: price increases and volume increases. The member overlooks and I suspect some pharmacies might overlook the fact that the volume increases are about 5 or 6 percent per annum. That is the direct result of the Government’s Primary Health Care Strategy of which I am very proud. 
Barbara Stewart 
: Is the Minister concerned that the proposed fee freeze will seriously affect the viability of many pharmacies in rural areas that rely on the dispensing fee to remain in business and that any pharmacy closures will further erode rural health services? 
Hon PETE HODGSON 
: The member may not be aware that district health boards can add provider-specific terms and conditions to the national core contract from 1 March this year including an adjuster to maintain access and geographic coverage—for example in rural areas. That facility already exists and it is used somewhat. 
Dr Jackie Blue 
: Is the Minister aware that since 2003 although the number of prescriptions increased by 26 percent to 28 million the dispensing fee has remained static and that in the proposed pharmacy contract no allowance has been made for an increase in the fee for a further 2 years; does he think that is reasonable considering that pharmacists have had to employ additional staff to cope with the volume increase as well as to cope with inflation and compliance costs? 
Hon PETE HODGSON 
: The member has more or less answered her own question. There has been a significant increase in the uptake of prescriptions presented to pharmacies over the years as she has offered to the House. A 26 percent increase in revenue in that time is no small amount. To the extent that pharmacists must if you will work harder for that and provide both dispensing and advice I thank them for their efforts. But the long and short of it is that that represents an increase in productivity. I thought the member was in favour of that. 
Jo Goodhew 
: Can the Minister confirm that the medicine depots that he intends to replace more rural pharmacists with will be no different from a parcel depot and will in effect deny rural people access to the trusted health professional who is most often the first point of contact for health care? 
Hon PETE HODGSON 
: The member has got hold of an agenda that is certainly not mine and certainly not one of the district health boards. Depots have been around in this country for decades. There is no particular intention to increase them. 
Hon Tony Ryall 
: What confidence can the public have in these contract negotiations in light of the unprecedented decision of the High Court in Auckland today to set aside the contract that the Auckland district health boards have awarded to Labtests Auckland; and does the Minister stand by the Chairman of the Auckland District Health Board Wayne Brown who said in a public statement that Dr Bierrewent beyond the statutory requirements in standing down from the board and that he did not participate in any decisions even though the High Court in Auckland has ruled in favour of the plaintiff because it was disadvantaged by Dr Bierre’s ability to use confidential information in the consortium proposal despite what Mr Brown said? 
Hon Dr Michael Cullen 
: I raise a point of order Madam Speaker. I waited for the member to finish his question in case we got within the scope of the original question which is about pharmacy contracts not laboratory testing. 
Madam SPEAKER 
: No I agree with the member. It is about a pharmacy contract and the member has already foreshadowed that he will seek to raise that matter in the House by leave later on. 
Jo Goodhew 
: Will the Minister personally front up to public meetings in rural New Zealand and explain why he is prepared to incentivise general practitioners and midwives in rural areas but seems content to see pharmacists exit the primary health care team? 
Hon PETE HODGSON 
: I will repeat to the member some advice that I gave a colleague in the House earlier. District health boards can add provider-specific terms and conditions to the national core contract including an adjuster to maintain access and geographic coverage in rural areas. The member represents the part of New Zealand that is around South Canterbury. In South Canterbury such contracts already exist. The member needs to get in touch with what is happening in her own electorate. 
Jo Goodhew 
: I seek leave to table a press release in which the Rural GP Network says that a reduction in the number of pharmacies would pose a major threat to the health of the already vulnerable communities they serve. 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? There is objection. 
Jo Goodhew 
: I seek leave to table a further press release in which a rural pharmacist says that district health boards need to realise chemists do more than just dispense medicine. 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? There is objection.