Media release

25 July 2004 - MVT64/2004

Australia-United States FTA No Threat to PBS

 

Trade Minister Mark Vaile today welcomed the release by Health Minister Tony Abbott of the details of the independent review mechanism for unsuccessful applications to list drugs on the Pharmaceutical Benefits Scheme.

The establishment of an independent review mechanism is a commitment Australia gave as part of the Australia-United States Free Trade Agreement.

The independent review mechanism, developed in consultation with the Pharmaceuticals Benefits Advisory Committee, the pharmaceutical industry and other stakeholders, enables unsuccessful applicants to specify grounds for a review. An independent expert reviewer will be appointed who will make comments back to the PBAC. At all stages, information will be made publicly available to explain and justify the recommendations made.

"The review mechanism will only bring more transparency to the PBAC's decisions to accept or reject applications to list drugs on the PBS," Mr Vaile said.

"The details published today confirm what the government has said repeatedly over the six months since the FTA negotiations were completed: the deal will have no impact on prices Australians pay for drugs and no impact on the sustainability of the PBS."

"Political scaremongering that the Australia-US Free Trade Agreement would harm the PBS and claims that drug prices would increase as a result of the agreement were always without basis in reality and can now be seen to be completely false."

Mr Vaile said the Australian Labor Party had used false claims about the impact of the FTA on the PBS to delay making a decision on the overall agreement.

"Mark Latham does not know which way to turn on the FTA with the United States. His party is deeply divided. All the State Labor Premiers support the deal, as do senior figures in the shadow ministry, but Latham's backers in the party's anti-American left wing and militant trade unions continue to attempt to derail the deal."

"Today the AMWU has stepped-up its campaign against the FTA with absurd claims about its impact.

  "The FTA promises to deliver billions of dollars and thousands of jobs to the Australian economy. The agreement is clearly in Australia's national interest and the Labor Party should support it immediately."

 

Media contact: Matthew Doman (Canberra) +612 6277 7420.