Chapter 1
Introduction
Terms of reference
1.1
On 23 June 2011, the Senate referred the following matters to the Senate
Finance and Public Administration References Committee for inquiry and report
by 18 August 2011:
The Government's administration of the Pharmaceutical
Benefits Scheme (PBS), with particular reference to:
(a) the deferral of
listing medicines on the PBS that have been recommended by the Pharmaceutical
Benefits Advisory Committee;
(b) any consequences for
patients of such deferrals;
(c) any consequences
for the pharmaceutical sector of such deferrals;
(d) any impacts on the
future availability of medicines in the Australian market due to such
deferrals;
(e) the criteria and
advice used to determine medicines to be deferred;
(f) the financial
impact on the Commonwealth Budget of deferring the listing of medicines;
(g) the consultation
process prior to a deferral;
(h) compliance with the
intent of the Memorandum of Understanding signed with Medicines Australia in
May 2010; and
(i) any other
related matter.[1]
Conduct of the inquiry
1.2
The inquiry was advertised in the newspaper The Australian, and
through the internet. The committee invited submissions from the Commonwealth
and State and Territory Governments and interested organisations.
1.3
The committee received 64 public submissions and one confidential
submission. The list of individuals and organisations which made public
submissions to the inquiry, together with other information authorised for
publication by the committee, is at appendix 1. The committee held two
days of public hearings, one in Melbourne on 21 July 2011 and one in
Canberra on 25 July 2011. The list of witnesses who gave evidence at
the public hearings is available at appendix 2. Submissions, additional
information and the Hansard transcript of
evidence may be accessed through the committee's website at https://www.aph.gov.au/Senate/committee/fapa_ctte/index.htm
Acknowledgement
1.4
The committee thanks those organisations and individuals who made submissions
and gave evidence at the public hearings.
Note on references
1.5
References in this report are to individual submissions as received by
the committee, not to a bound volume. References to the committee Hansard are
to the proof Hansard. Page numbers may vary between the proof and the official
Hansard transcript.
Structure of the report
1.6
The report is structured as follows:
-
Chapter 2 of the report provides a background to the
Pharmaceutical Benefits Scheme (PBS) including the role of the Pharmaceutical Benefits
Advisory Committee (PBAC), the process of listing medicines under the PBS, the
costs of the PBS, and the recent Government decision to defer listings of a
number medicines under the PBS.
The chapter also
provides background on the Memorandum of Understanding (MOU) between the
Commonwealth Government and Medicines Australia signed with effect until 30
June 2014;
-
Chapter 3 discusses the Government's decision to defer the
listing of medicines under the PBS;
-
Chapter 4 canvasses the financial impact of the PBS on the
Commonwealth Budget;
-
Chapter 5 covers the impacts on patients of the Government's
decision to defer the listing of medicines;
-
Chapter 6 discusses the consequences for the pharmaceutical
sector and the availability of medicines in Australia; and
-
Chapter 7 presents a summary of the committee's conclusions.
Personal comment from the Chair - Declaration of interest
1.7
As Chair I would like to restate for the public record that, prior to
being elected to the Senate in November 2007, I was an employee of
GlaxoSmithKline (GSK) from November 2002-December 2006 and that I undertook
some consulting work with Medicines Australia in February 2008. I am also a
shareholder in GSK Plc, as declared in the Register of Senator's Interests.
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