US trade deal could scuttle Pharmac

Kiwis could be paying more for pharmaceuticals if the Trans Pacific Partnership (TPP) free trade negotiations are successful, the Green Party said today.

“The US pharmaceutical lobby is using the trade talks to weaken Pharmac,” said Green Party trade spokesperson Dr Kennedy Graham.

“US drug companies want to destroy Pharmac so that they can make more profit off the New Zealand tax payer.

“The US drug lobby has openly complained about Pharmac’s ‘single minded focus on driving down costs’. Presumably they would like to see costs increase.

“Forcing Pharmac to buy a greater range of pharmaceuticals will increase the health bill to all New Zealanders and means the costs are likely to increase too for the consumer. The only winner will be the US pharmaceutical companies.

“Pharmac works because it keeps costs low and maximises our health spend to achieve the best outcomes.

“It is time for the Government to stand up to the US drug companies. We don’t want a repeat of the Warner Brothers situation where foreign companies can come in and set the terms for how we do things here.

“Most New Zealanders think free trade deals are about milk and butter. But the TPP is really about investment rights for foreign companies. The Government needs to release the working text of the agreement now so we know just what is at stake,” said Dr Graham.