Trans tasman drug agency push set to increase costs and limit choice

Friday, June 23rd 2006

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The Government has renewed an offensive to create a transtasman drug agency, but is likely to have to explain an embarrassing defeat to the Australians.

The two countries have been working on the plans for the joint regulatory regime since the late 1990s and signed a treaty in 2003.

The agency was supposed to be established next month but, struggling for votes, State Services Minister Annette King announced a deferral in December.

Under the new timetable the Government aims to introduce the legislation next month and establish it mid next year.

In recent weeks it has embarked on a lobbying campaign of parties it hopes might come onside, including New Zealand First and the Maori Party.

Last night Health Ministry officials undertook a cross-party briefing of MPs as the Government intensifies its efforts.

But unless there are significant changes to the proposed plan, the framework of which was long ago determined between the two Governments, there appears little chance of it succeeding.

The Maori Party is the only party yet to decide how to vote - but could not give the Government the numbers it needs to introduce the law.

The Greens, New Zealand First, Act, United Future and National are all opposed to the plan, with only some prepared to waver if there were significant changes.

Most of the parties said as much in a select committee report written in 2004 and say "draft rules" put out for consultation last month reveal little deviation from the original proposal.

Mrs King refused to comment on the issue yesterday, other than to confirm officials were briefing MPs.

The Australian Government is due to release a draft of its bill next month - which would appear to be pointless if Mrs King cannot get the support.

Associate Health Minister Peter Dunne confirmed yesterday that he had told a select committee last week he didn't believe the Government currently had the numbers.

National's health spokesman, Tony Ryall, said the party had long made its concerns about the agency clear.

These included "the compliance costs and the effects on natural products and the effect that might have on small businesses and consumer choice".

National was in Government when the agency was proposed and Mr Ryall said "we've always said it had some merit, but the devil was in the detail".

He planned to attend the briefing but said there had been "no consultation over the proposed rules and proposed legislation whatsoever".

"The Government has been quite irresponsible with the way it has dealt with this issue and at this stage we've seen nothing to address our concerns.

"Harmonising with Australia should only happen when it's of benefit to New Zealand."

Greens health spokeswoman Sue Kedgley asked when the Government was prepared to admit defeat.

It had already spent $4.8 million on developing plans for the agency, which included employing 7.5 fulltime staff, she said. A further $1 million has been set aside for it in this year's Budget.

WHAT IT'S ABOUT

* The Australia New Zealand Therapeutic Products Agency would jointly regulate prescription and over-counter medicines, medical devices and blood products and replace Medsafe.

* But critics say it would be too draconian, knocking many dietary and natural products off the market and closing businesses.

Written by Ruth Berry for NZ Herald
Wednesday June 21, 2006

Footnote from Ideal Health

Related articles can be found here:

Bitter pill: Govt surrenders $200m industry to Australian control

Complementary Health Response Disappoints Sue Kedgley

Govt Suffers Setback on Trans-Tasman Plans

NZ Health Trust Newsletter

Pharmac Warns Huge Fees Will Price Medicines Off the Shelf

Rules Body 'Will Limit New Drugs'

Speech by Green Health spokesperson Sue Kedgley to the Natural Healthcare Policy Debate

When Is a Lie Not a Lie?

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