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Industries assistance commission reference – pharmaceutical products industry



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Jkk DEPARTMENT OF INDUSTRY AND COMMERCE « S F INCLUDING THE AUSTRALIAN CUSTOMS SERVICE

News Release News Release IMMEDIATE RELEASE 17 OCTOBER 1984 90/84

INDUSTRIES ASSISTANCE COMMISSION REFERENCE - PHARMACEUTICAL PRODUCTS INDUSTRY

The Industries Assistance Commission will inquire into the

pharmaceutical products industry under a reference announced today "by the Minister for Industry and Commerce, Senator John Button.

The IAC is required to report within 12 months.

Senator Button said that the inquiry was foreshadowed when he

announced on 6 September 1984 that a reference had been sent to the IAC on the chemicals and plastics industries.

"The Commission has been asked to examine the potential for the

development of the pharmaceutical products industry in Australia

and in particular to report on factors affecting its future

prospects. Both human and veterinary pharmaceuticals are covered by the reference.

"As an integral part of the reference the IAC has been asked

specifically to report on pharmaceutical pricing policies and

practices under the Pharmaceutical Benefits Scheme (PBS) and on

their influence on the industry, as well as on the future of the

bounty arrangements for pencillin production in Australia.

"This is a key issue for the pharmaceutical products industry

which has expressed concern at the level of drug prices under the PBS and over the operation of the scheme. ■

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"As an interim measure, pending the IAC inquiry, PBS prices had

"been increased by an average of 5 per cent across the hoard in the recent Budget.

"The reference asks the IAC to identify and evaluate a range of

options available to the Government to improve the

competitiveness and efficiency of the industry and to enhance its contribution to the economy. The options are to include

revisions to the PBS pharmaceutical pricing system.

"It is open to the IAC to take any evidence and make

recommendations on any matter relevant to its inquiry.

"The bounty on penicillin production will be extended by one year

to avoid the possibility of disruption pending G-overnment consideration of the Commission's report.

Senator Button commented that this reference was the third in a series of chemical references, others being on fertilisers and chemicals and plastics.

A copy of the reference is attached together with a list of goods under reference.

CANBERRA ACT CONTACT: R B Gould

(062) 72 3061 (w)

A

INDUSTRIES ASSISTANCE COMMISSION ACT 1973

I, JOHN NORMAN BUTTON, Minister for Industry and Commerce, in pursuance of my powers under Section 23(1)· of the Industries Assistance Commission Act 1973:

1. Refer the pharmaceutical products industry to the Industries Assistance Commission for inquiry and report within twelve months of the date of receipt of this reference.

2. Specify that the Commission's inquiry and report include goods of a kind which, if imported, would fall within the items or parts of items in Schedule 3 of the Customs Tariff Act· 198 2 (as proposed to be amended) listed in the Attachment to this reference.

3. Without limiting the generality of this reference, request the Commission to report on:

(a) The potential for the development of the pharmaceutical products industry in Australia and, in particular, identify and report on significant factors that may impede the growth of the industry or in other ways affect its

competitiveness and efficiency, including:

. the structure and ownership of the industry . raw material, labour, capital and other ' relevant costs . export prospects and capability . franchise or like arrangements affecting

trade and technology . developments in the pharmaceutical products industry in other countries . technology development, technology transfer

arrangements and research within the industry . institutional factors including current assistance arrangements and other

Government policies,

(b) Pharmaceutical pricing policies and practices under the Pharmaceutical Benefits Scheme (PBS) and their influence on the profitability and development of the pharmaceutical products

industry in Australia and

(c) Whether the bounty arrangements for penicillin production in Australia should be continued.

. . . / 2

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4. Request that the Commission identify and evaluate options, together with any preferred options (including options relating to the provision of assistance and the revision of the PBS pharmaceutical pricing system), available to the Government to improve the competitiveness and efficiency of this industry or in other ways enhance

its contribution to the economy.

5. Specify that the Commission shall be free to.take evidence and, where necessary, to make recommendations on any matters relevant to its inquiry under this reference.

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MINISTER FOR INDUSTRY AND COMMERCE

ATTACHMENT

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DETAILS OF TARIFF ITEMS INCLUDED IN THE REFERENCE ON PHARMACEUTICAL PRODUCTS

ITEM

29.38 29.39 29.41 29.42 29.44 Any item in Chapter 30

Ex 38.19.91 Ex 38.19.99

DESCRIPTION

Provitamins and vitamins Hormones Glycosides Vegetable alkaloids Antibiotics Pharmaceutical products Pharmaceutical products Pharmaceutical products