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Mr. Carmichael: I have difficulty following the Minister's thinking. Why does he continue to look at the question of dispensing medicines in isolation, rather than as part of the totality of veterinary practice? Does
he not realise that increasing bureaucracy will increase consultation fees and that, ultimately, the consumer will end up paying more?
Alun Michael: I put the question back to the hon. Gentleman. Why does he not recognise that complaints were taken to the Competition Commission because the prices charged for dispensed medicines were seen by the complainants as unjustified and onerous? Indeed, those prices were found by the Competition Commission to be unjustified, and a distortion in the prices being charged was identified.
Mr. Carmichael: The Minister may need to write to me on this question, but perhaps he would be kind enough to find out how many complaints were made; my understanding is that it was dozens rather than hundreds. Many of the complaints were based on the differences between prices in Northern Ireland, which is part of the United Kingdom, and the Republic of Ireland, where very different licensing restrictions apply to the development of drugs. When will the Government tackle the pharmaceutical industry on that point?
Alun Michael: The hon. Gentleman makes several assumptions, most of which are not justified. The number of complaints is not the issue when the Competition Commission considers a subject. The
Ministers involved considered that the complaints were sufficiently serious for the matter to be referred to the commission, and it then undertook its inquiry—as on a range of issues—and felt that there was a cross-subsidy that was not justified and that pricing was therefore not appropriate. I suggest that if the hon. Gentleman wishes to question the process by which the commission reached its conclusions, he discuss it with the commission, rather than assuming that it has not done a proper job. From my experience of reading reports from the commission in other contexts, it is assiduous in considering the competition issues and trying to understand the context of the trade, business or profession that it is judging. The hon. Gentleman should talk to the commission about its practices, so that he understands how it approaches such issues.The Government will implement the Competition Commission's remedies and those of the recommendations that we have accepted—as spelled out at the time—in consultation with all interested parties and in discussion with the veterinary profession. That is the right way to take matters forward. The findings of the commission cannot be dismissed as lightly as the hon. Gentleman suggests.
- Adjourned accordingly at twenty-seven minutes to Eleven o'clock.
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