6. Question No. 6—HealthHon MICHAEL WOODHOUSE (National) to the Minister of HealthQuestion No. 6—Health6. Hon MICHAEL WOODHOUSE (National) to the Minister of Health: What dollar amount was expended on pharmaceuticals for the year ended 30 June 2009 according to Pharmac's 2008-09 annual report and how does that compare with Pharmac's expenditure on pharmaceuticals reported in Pharmac's 2018 annual report?Hon JENNY SALESA (Associate Minister of Health) on behalf of the Minister of Health: I'm surprised the member is asking about two Budgets delivered by the previous Government. According to its annual report in 2008-09 Pharmac spent $653 million on pharmaceuticals. In 2017-19 Pharmac spent $870.8 million on combined pharmaceuticals. I'd also note that the combined pharmaceutical budget for 2019-20 is $995 million.Hon Michael Woodhouse: So can she confirm then that the budget for pharmaceutical funding increased by an average of $24 million per year for the nine years since 2008-09?Hon JENNY SALESA: As I said in my primary answer the budget was $653 million and then in 2017-2018 $870.0 million. In terms of the annual increase per year I do not have that level of figure but the member is most welcome to put that level of question to the Minister of Health who'll be happy to answer it. Hon Michael Woodhouse: How can she stand by her part of the answer to the primary question that Pharmac funding this year is $995 million when since 2018 the Government has appropriated zero dollars in the 2018 Budget and $10 million only in Budget 2019?Hon JENNY SALESA: There was an increase of $10 million in this year's Pharmac budget but I can say this: Pharmac's budget is now at an increased record level at $995 million—close to $1 billion. That is up from $884.3 million in the last Budget delivered by that member's Government. Every year as drugs come off patent and Pharmac is able to make savings it means that it can purchase more drugs for more people—that is in terms of the advantages of that Pharmac model and this is one of the reasons why other countries are looking at the model we have here in New Zealand in terms of how we purchase drugs.SPEAKER: Order! Order! That's well past answering the supplementary.Hon Michael Woodhouse: By what mathematical alchemy does $884.3 million plus $10 million equal $995 million?Hon JENNY SALESA: The amount of funding in terms of Pharmac's funding right now is $995 million. Hon Amy Adams: Are you sure about that?Hon JENNY SALESA: Yes this is the advice from Pharmac. In the last Budget delivered by that member's Government it was $884.3 million. Mr Speaker—SPEAKER: Order! The member has answered the question.Hon Michael Woodhouse: Is it that kind of financial—SPEAKER: Sorry—which member is making those noises? Well if it's hiccups go and get some water—Hon Amy Adams: Oh that wasn't me sir. Sorry. I don't want to claim responsibility!Hon Michael Woodhouse: Is it that kind of financial acumen that means cancer sufferers like Blair Vining Wiki Mulholland Terre Maize and many thousands of other New Zealanders are resorting to family charity and Givealittle pages in order to fund medicines under this Government?Hon JENNY SALESA: My heart goes out to Blair and his family and I thank him for his advocacy and campaigning on the issue of cancer care. In terms of Pharmac's role as defined under the New Zealand Public Health and Disability Act 2000 it is to secure for eligible people in need of pharmaceuticals the best health outcomes that are reasonably achievable from pharmaceutical treatment and from within the amount of funding provided;". While there are a range of factors affecting life expectancy New Zealand has a high life expectancy relative to the amount of funding that we spend on pharmaceuticals. In particular when we compare to the UK to Canada and to the USA Pharmac is a really good model.SPEAKER: Order! Much more than necessary.Hon Michael Woodhouse: Does he accept that Pharmac can only purchase medicines if they are given the extra funding to do so?Hon JENNY SALESA: The Pharmac model was established in 1993. This is a model that works very well for New Zealanders. Decisions on drugs and which drugs are funded are taken at arm's length from Ministers by Pharmac and they are based on solid evidence. We cannot have politicians second-guessing clinical experts. SPEAKER: No the member will have another go because she didn't address the question. Do you want the question repeated?Hon JENNY SALESA: Yes please.Hon Michael Woodhouse: Does he accept that Pharmac can only purchase extra medicines if they are given extra funding?Hon JENNY SALESA: I accept that Pharmac has that role and I want to reiterate that Pharmac has $995 million right now in order to do their role."