Hague Kevin: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeHague Kevin: Oral Questions — Questions to Ministers[Sitting date: 18 February 2016. Volume:711;Page:9150. Text is incorporated into the Bound Volume.]6.KEVIN HAGUE (Green) to the Minister of Health: What is the Government’s estimate of the likely extra cost faced by Pharmac for each of the TPP’s provisions relating to transparency processes patent term extensions for pharmaceuticals and data protection extension for biologics?Hon Peseta SAM LOTU-IIGA (Associate Minister of Health) on behalf of theMinister of Health: I am advised that the Trans-Pacific Partnership (TPP) will not change the Pharmac model. The administrative changes are expected to involve up to $4.5 million in one-off establishment costs and up to $2.2 million a year in operating costs. In respect of patent provisions although the cost of any delays would depend on the case the average cost is estimated at approximately $1 million a year.Kevin Hague: I raise a point of order Mr Speaker. That was a question on notice and I appreciate the Minister’s answers to the first two categories of increased cost but he has not responded to the data protection extension for biologics issue.Mr SPEAKER: Can the Minister please respond specifically to the issue about extra costs associated with data protection extension for biologics.Hon Peseta SAM LOTU-IIGA: There is no associated cost with those provisions. The biologics outcome for the TPP can be met within New Zealand’s current policy settings and practice.Kevin Hague: Can the Minister explain how it might be possible for data protection for biologics to be extended from 5 years to an 8 years’ equivalent without costing the New Zealand taxpayer substantially more?Hon Peseta SAM LOTU-IIGA: As I have said under the current policy settings and practice I have been advised that there will be no costs associated with those provisions.Kevin Hague: If the United States tries to further extend data protection for biologics which has been signalled will the Minister categorically rule out agreeing to that?Hon Peseta SAM LOTU-IIGA: That is a hypothetical question I cannot give an answer to.Kevin Hague: Does the Minister accept that every dollar spent by the taxpayer of New Zealand on jumping through TPP agreement hoops is a dollar not spent on saving lives and on medicines for sick people?Hon Peseta SAM LOTU-IIGA: What I do accept and what the New Zealand public accepts is that there will be an estimated benefit of $2.7 billion to New Zealand’s GDP by 2030. That will save New Zealand businesses $274 million per year in tariffs. The benefits to jobs and opportunities for New Zealanders are going to be quite high.Kevin Hague: Does the Minister accept that if Pharmac has a capped budget and it does and the TPP agreement will increase the costs of medicine and it will then an inevitable consequence is that it will be harder for Pharmac to fund new and innovative medicines such as those for treating HIV?Hon Peseta SAM LOTU-IIGA: What I will say in response to that question is that Pharmac will continue to do what it does best. It prioritises spending in negotiation with suppliers for the best prices for medicines and that benefits New Zealand consumers.Kevin Hague: Will the Minister guarantee that the extra costs to Pharmac because of the TPP agreement will be met by increased Government funding and not taken from other health services or requiring Pharmac to find savings?Hon Peseta SAM LOTU-IIGA: What I will say is that despite claims by that member and others out there consumers will not pay more for subsidised medicines as a result of the TPP. The TPP will not change the Pharmac model.Kevin Hague: I raise a point of order Mr Speaker. I appreciate that the Associate Minister of Health is answering on behalf of the Minister of Health and so may not be as well informed as the Minister. However for the last three supplementary questions his answers have been largely unresponsive and on this particular question he has responded with an answer about dispensing fees rather than actually addressing the fundamental issue which is the fact that New Zealand taxpayers will be paying more for medicines.Mr SPEAKER: I think on this occasion I can accept the member’s frustration with some of the earlier answers but the point of order was not raised then. On this particular question I think the Minister has addressed it. The member asked for an absolute guarantee. I think that is a tall order for any Minister to give a guarantee of that type. I think he has addressed it by saying he does not expect patients to pay more.Kevin Hague: Will the Minister now guarantee then that if the TPP agreement is ratified future Pharmac funding recommendations will be funded at the level that guarantees New Zealanders optimal access to medicines and not cut back as has been his Government’s typical practice?Hon Peseta SAM LOTU-IIGA: No I am not going to make that guarantee.