Pharmac hears 'drumbeat'

The Dunedin-based chairman of pharmaceutical-buying agency Pharmac says he is aware the "drumbeat" of the United States pharmaceutical lobby has intensified because of free trade talks between the United States and New Zealand.

Stuart McLauchlan said increased lobbying from the "huge" pharmaceutical industry was due to the opportunity presented by the Transpacific Partnership Agreement to loosen trade and commerce barriers.

He said it was up to the Government what it was prepared to "trade away" to gain other advantages.

Pharmac's competitive advantage ensured drugs could be bought as cheaply as possible. Without it, more health rationing would probably be needed, he said.

In response to a query from the Otago Daily Times, Trade Minister Tim Groser's office issued a statement saying New Zealand's pharmaceutical-purchasing policies were a long-standing issue for the US pharmaceutical industry, so it was "no surprise" it was on the table in the trade talks.

"The NZ Government has been clear that Pharmac has worked well for NZ and the fundamentals of that model are not up for negotiation."

Free trade critic Prof Jane Kelsey, of Auckland University, was unconvinced by the minister's assurance.

"The only satisfactory reassurance ... in relation to Pharmac is that [the Government] would require an explicit guarantee written into the agreement that preserves New Zealand's right to determine our own health policies, including our medicines regime and anti-smoking laws, now and in the future."

eileen.goodwin@odt.co.nz

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