Kedgley Sue: Questions for Oral Answer — Questions to Ministers 
Kedgley Sue: Questions for Oral Answer — Questions to Ministers 
[Volume:618;Page:13549] 
6.  
SUE KEDGLEY (Green) 
 to the  
Minister of Health 
: Has she seen the 2004 Pharmac submission to the Health Committee that states that the cost to the New Zealand taxpayer of joining with Australia in a joint therapeutics agency could be $85 million to $135 million over 3 years due to a de facto patent term extension and how will such a cost increase benefit New Zealand? 
Hon ANNETTE KING (Minister of Health) 
: 
 The member misquotes the Pharmac submission. The submission actually states: “Unless the rules are carefully drafted the creating of the JTA could lead to a de facto patent term extension in New Zealand at significant cost to the taxpayers.” The Government has no policy to change the patent term for New Zealand and the rules should reflect that. 
Sue Kedgley 
: Has the Minister seen the report to the Australian Senate by Peter Drahos professor of law at the Australian National University that points out that new intellectual property provisions contained in the Australia - United States free-trade agreement will add about a third to the annual cost of drugs in Australia; and will a joint agency set up under Australian law not mean that those increased costs will flow on to New Zealand as well and we could end up with an increased drug bill of about $200 million a year; if not why not? 
Hon ANNETTE KING 
: No I have not seen the report that the member mentions. But I was recently at the ministerial conference in Australia where an assurance was given that the Australia - United States free-trade agreement would not affect the proposed agency. 
Steve Chadwick 
: Does Pharmac support the establishment of a joint therapeutic regulatory framework? 
Hon ANNETTE KING 
: Yes. I will quote accurately from the Pharmac submission: “Pharmac support the establishment of a joint therapeutic regulatory framework that maintains the standards currently enjoyed in New Zealand while minimising the cost of such regulation.” 
Dr Paul Hutchison 
: Does the Minister accept that it will be almost unprecedented to have the Health Committee vote against the Government’s legislative plans for a treaty it has already signed and can she reassure the House that the advantages that are already identified for Australian businesses over New Zealand businesses will be corrected? 
Hon ANNETTE KING 
: I will be interested to see what the select committee does and I will be interested to hear what the National Party is saying to the Liberal Government in private. There does appear to be some confusion in the National Party. After all Lockwood Smith along with Maurice Williamson and others is saying how important it is for us to get closer to Australia and support it—the joint regulator—in Government whilst we have Gerry Brownlee insulting the Australians in public. What the Australians like about this Government is that we are reliable and we consistently keep our word. 
Mr SPEAKER 
: I remind members that what goes on in select committees before they have reported back to the House has to be kept inside the select committees. So far I have not ruled anything out. 
Barbara Stewart 
: If the Health Committee recommends against proceeding with the ratification of this treaty will the Minister follow the committee’s advice? 
Hon ANNETTE KING 
: The decision to ratify the treaty will be one made by the Government. We will certainly listen to the advice that comes from the select committee and I will be interested in what its recommendations are. 
Rod Donald 
: What evidence does the Minister have to back up her claim that the proposed free-trade agreement between Australia and the United States will not apply to the joint therapeutics agency when it will be established under Australian law; and can she point to a single provision of the free-trade agreement that would exempt the regulation of therapeutic products in New Zealand from the provisions of that free-trade deal? 
Hon ANNETTE KING 
: The joint agency will be set up under Australian and New Zealand law. If one looks at the rules one sees there are many that will cover both the Australian jurisdiction and the New Zealand jurisdiction. What I can point to as I said in my answer to the member’s colleague is that I was recently at the ministerial council where I asked the question about the free-trade deal between Australia and the United States and assurance was given that it will not affect the joint agency. Obviously we watch that carefully every step of the way. 
Judy Turner 
: Can the Minister assure the New Zealand public that the current rate of subsidies on pharmaceuticals will not be reduced nor will the programme for introducing additional products be downsized as a result of harmonisation? 
Hon ANNETTE KING 
: The decisions on what drugs are subsidised are carried out separately from the joint therapeutic agency. The decision on what drugs we will subsidise is a role of Pharmac and that does not change under a joint regulator. What the joint regulator does is to decide on which drugs will be registered for the Australian and New Zealand market. Australia may well subsidise some drugs that we do not or vice versa. 
Sue Kedgley 
: Does the Minister agree with the researched medicines industry assessment that the cost of registering drugs will increase tenfold under the joint agency which may make it uneconomic for generic drugs to enter the New Zealand market; if not why not? 
Hon ANNETTE KING 
: No I do not agree with the drug companies’ organisation. After all at the moment drug companies have to pay to register drugs in two countries. Under a joint regulator they will pay to register their drugs across both countries with one fee. 
Sue Kedgley 
: Were the assurances the Minister was given in Australia about the implications of the free-trade agreement for the joint agency given in writing and will she guarantee to New Zealanders in the House today that joining the agency will not result in higher costs for drugs and dietary supplements or in a reduction in the number of generic drugs available; if not why not? 
Hon ANNETTE KING 
: No. I did not ask for them to be given in writing. Many discussions take place with our neighbours across the Tasman. We work in a very harmonious way with them and I have to say that we do not hold the same conspiracy theories the Greens often do when it comes to dealing with other Governments. 
Sue Kedgley 
: I raise a point of order Mr Speaker. I specifically asked the Minister to make a guarantee to New Zealanders that joining the agency would not result in higher prices for drugs— 
Mr SPEAKER 
: The Minister was asked two or three questions. She certainly answered one of them. That is all she is required to do.