Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

My question is for the Minister representing the Minister for Health and Ageing, Joe Ludwig. Minister, in light of the recent controversy over chemotherapy drugs, my question relates to the government's policy on the Pharmaceutical Benefits Scheme. Last year the government chose to defer the funding of seven drugs that were assessed by the Pharmaceutical Benefits Advisory Committee as being cost-effective. A Senate inquiry criticised the government's deferral and recommended against political interference into the decisions of the PBAC. Since then two new hepatitis C drugs, telaprevir and boceprevir—drugs that would prevent many of the 200,000 Australian hepatitis C sufferers from developing liver cancer—have been recommended for listing. Can the minister advise why these drugs have not yet been funded through the PBS?

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I thank Senator Di Natale for his continuing interest in issues surrounding the PBS. If I do not provide the whole of the answer to the question Senator Di Natale asked then I will take that part of it on notice. But I think it is important to recognise that there have been announcements by the health minister around the government's decision to subsidise a range of medicines on the Pharmaceutical Benefits Scheme, and from 1 March 2013, subject to listing conditions being met, a list is estimated to cost $447 million over five years for a medicine such as Lyrica. This listing will be a great relief to many of those who suffer from particular chronic nerve pain. But more broadly there are some recommendations from the Pharmaceutical Benefits Advisory Committee that are yet to be considered by government. This includes high-cost medicines—and I will not try, Mr President, to pronounce these names—with brand names such as Victrelis and the one Senator Di Natale mentioned. It starts with a 'T' and it is a brand name for the treatment of hepatitis C. So we are on the same page.

Under the memorandum of understanding with Medicines Australia, the government has agreed with industry on timeframes for considering the new high-cost listings. The agreement recognises that the government must be allowed time to carefully consider the clinical and financial implications and opportunity costs of high-cost proposals such as these. (Time expired)

Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. A further drug, dabigatran, which is a blood-thinning agent which can be used as an alternative to existing treatments, was recommended for listing on the PBS 18 months ago. Rather than funding the drug on the PBS, as is normal practice, the government commissioned a review of all blood-thinning drugs. I understand that the review is with the Minister for Health and Ageing. Minister, when will the recommendations from this review be made public and when will the recommendations be implemented?

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I thank Senator Di Natale for his question in relation to the Pharmaceutical Benefits Scheme. I will take that part of the question on notice in respect of what may or may not be with the Minister for Health and Ageing. I accept that the question is well meant. If it is with the minister for health then those matters of course will be addressed by the minister for health. The timing of the release, of course, is always a matter for government, subject to the minister for health's considerations.

But it is worth putting it in a broader frame. In 2012-13 PBS expenditure is expected to be $9.7 billion, an increase of around $500 million over 2011-12. That is the annual wage of something in the order of 5,200 nurses. These are significant decisions that have to be made. They have to be carefully considered by the minister for health— (Time expired)

Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given that recent evidence shows that the time taken between the approval of drugs to their listing under the PBS has increased dramatically, can the minister confirm whether there is a deliberate policy by cabinet to defer the funding of new drugs? Can the minister confirm whether new drug listings are being deferred until corresponding offsets can be found elsewhere in the health budget?

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I thank the senator for his second supplementary question. Of course, I am not going to comment on budget considerations; they are matters that the Treasurer could answer. It is important to note, when we then look at the considerations, that the Minister for Health has done an extraordinary amount of work in this area to bring on medicines that can change people's lives. As I mentioned earlier in my response to the primary question, the one dealing with chronic nerve pain has been listed. It is one of those areas where price increases for nine PBS listed medicines were announced at that time. New listings have continued to be announced. On 24 October 2012 a number of new, amended and extended listings of PBS which will treat serious conditions—

Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

A point of order, Mr President. My question was quite specific. I am just asking whether the costs are going to be found elsewhere in the health budget. That was the purpose of that question. Does the money to fund these new drugs need to be found through offsets in the health budget?

John Hogg (President) Share this | Link to this | Hansard source

I believe the minister is answering the question. The minister has six seconds.

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

As I said, they were matters for budget consideration at the outset. What I then went on to say was that it if you look at— (Time expired)

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.