Senate debates

Wednesday, 20 June 2007

National Health Amendment (Pharmaceutical Benefits Scheme) Bill 2007

In Committee

12:30 pm

Photo of Jan McLucasJan McLucas (Queensland, Australian Labor Party, Shadow Minister for Ageing, Disabilities and Carers) Share this | Hansard source

I move opposition amendment (2), which puts into effect recommendation 2 of the Senate inquiry:

(2)    Schedule 1, Part 1 page 63 (after line 14), at the end of the part add:

93A  At the end of section 114

Add:

   (2)    In addition to matters referred for inquiry in accordance with subsection (1), the Pharmaceutical Services Federal Committee of Inquiry must prepare a report for the Minister on:

             (a)    the impact of the reforms made by the National Health Amendment (Pharmaceutical Benefits Scheme) Act 2007; and

             (b)    the impact on the cost of medicines to consumers as a consequence of the reforms.

(3)    The report required by subsection (2) is to be completed by 30 July 2009.

(4)    The Minister must cause the report required by subsection (2) to be tabled in both Houses of the Parliament within 5 sitting days of receiving the report.

This is a mechanism for an independent review of the impact of the reforms made by this bill by the pharmaceutical services federal committee of inquiry. The amendment requires the committee to prepare a report for the minister on the impact of reforms and the impact on the cost of medicines. This was the issue that was raised in hearings of the Senate Standing Committee on Community Affairs. It is hoped that there will not be an increase in costs for consumers as a result of the passage of this bill, but I think it is only sensible to monitor that. This amendment simply puts in place a formal process for a review of the impacts of this legislation on the PBS and on costs to consumers.

Like the last amendment, I do not know how you could vote against something of this nature. The appropriate body to undertake this review is, in our view, the pharmaceutical services federal committee of inquiry. At the very least it needs to be an independent body of review. I understand there have been discussions between government and Labor about that, but in the interests of the debate, we are proposing that that committee undertake the inquiry. We also require that the report be completed by 30 July 2009. That, again, is in accord with recommendation 2 of the Senate committee report. The date of 30 July 2009 is 12 months after the last implementation date in the tranche of proposals that this legislation delivers.

Finally, the amendment requires the minister to provide that report on the impacts of these changes to the parliament within five working days of receiving it. I think it is sensible policy to put into all significant legislation a review of change, and I am sure that the community would also like to know whether they have been impacted on, in terms of the cost of their drugs.

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