Stewart Barbara: New Zealand Public Health and Disability (Enhancement of Competition) Amendment Bill — First Reading 
Stewart Barbara: New Zealand Public Health and Disability (Enhancement of Competition) Amendment Bill — First Reading 
[Volume:629;Page:1826] 
BARBARA STEWART (NZ First) 
: 
 On behalf of New Zealand First I rise to speak to the New Zealand Public Health and Disability (Enhancement of Competition) Amendment Bill. New Zealand First will not be supporting this bill. We very carefully considered this bill and all of the concerns surrounding it. New Zealand First has long advocated that there should be a review of the efficiency of Pharmac. 
Our concerns have focused principally around the number and types of drugs that New Zealanders are able to receive for their various conditions and illnesses. We believe that all New Zealanders should have equitable access across each district health board in New Zealand to the best possible drugs so that the best possible health outcomes can be secured for eligible people. We find that this bill does not address our fundamental concerns. We cannot accept that this proposal will improve availability or ensure equal access to the most appropriate drugs irrespective of where a person lives in New Zealand. 
We acknowledge that Pharmac has a very difficult role and manages a limited budget in the face of strong pressure to increase expenditure on pharmaceuticals. As the Minister has pointed out Pharmac saves many millions of dollars per annum for the taxpayer and this is spent on additional medications. New Zealand First awaits the development and refinement of a long-term medicine strategy as the best way forward must surely be based on a thorough analysis of our current system and of international trends. We are very aware that this issue is totally separate from the member’s bill that we are discussing. 
In 2000 a review of Pharmac’s operating policies and procedures was undertaken. We note that part of that review commented on the Commerce Act exemption. Over the 2002-03 period there was communication with the industry regarding the use of alternative models for purchasing pharmaceuticals and the impact on research and clinical trials in New Zealand. This communication did not result in any recommendations for change. The debate with the industry has taken place over a long period and Pharmac has not abused its exemption over this time. Many of the actions identified by the industry as detrimental have been found to support reasonable objectives for the health system. We are very aware too that the industry has raised concerns about Pharmac’s exemption from its inception. But we repeat that New Zealand First does not believe that this bill deals with the real issues and that a more comprehensive appraisal is due. 
The value of the Commerce Act exemption in isolation is very difficult to quantify in real terms to consumers. New Zealand First is committed to the subsidising of pharmaceuticals for the benefit of all New Zealanders and to obtaining the best deal possible both in price and quality. We believe that Pharmac has to achieve its purpose of ensuring that all New Zealanders have access to safe and effective medicines and this is where we want the focus of Pharmac to remain. New Zealand First believes that with the passing of this bill there would be the potential for the sector to use the legal system and the Commerce Act to delay and influence decisions—this would really be expected business behaviour. Litigation as we all know is costly and of course time delays impact negatively on any benefit Pharmac provides to consumers. This bill would impact negatively too on the overall pharmaceutical budget because at best it fails to confront the real issues and at worst it could lead to additional costs and/or time delays. New Zealand First will be opposing this bill.