Significant divisions have opened up between the Government and Fianna Fáil backbenchers over the worsening row between the Health Service Executive and 1,600 pharmacists over the HSE's bid to cut €100 million from its drugs bill.
The pharmacists are threatening that medical card holders will have to pay for their drugs from March 1st, and seek refunds from the State unless the HSE abandons attempts to get them to sign a new, lower-paid contract before then.
Fianna Fáil TDs have come under severe pressure from a well- orchestrated Irish Pharmaceutical Union lobby campaign, and from elderly constituents who have become concerned amid claims that their prescriptions could be put at risk.
In the Dáil yesterday morning, the Taoiseach said both sides should "lower the temperature", while the pharmacists should agree the contract "and then allow" the Minister for Health and Children, Mary Harney, "to look at the fees".
But drug costs must be cut, Bertie Ahern warned.
"The crux of the matter is that the wholesale margin in this country is more than double that found in any other country in Europe, including Northern Ireland. It is an enormous margin," he said.
Subsequently, Mr Ahern said the Minister for Health "may" set up an independent body to negotiate a new deal and recommend a new fees scale to the Government.
Rejecting fears about prescriptions, the Taoiseach said: "If any community pharmacists decide not to honour their contracts they must give three months notice. No pharmacy in the Republic, to the best of my knowledge, has provided such notice. Thus, the issue should not arise."
Fianna Fáil TD Chris Andrews said the HSE's temporary contracts, which impose a 9 per cent cut on medical card prescription fees, are "a recipe for disaster" and should be taken "off the table" immediately.
The Oireachtas Health Committee, chaired by Fianna Fáil Laois Offaly TD John Moloney, is to meet again for the third day in a row in order to agree a motion demanding the appointment of an independent arbitrator, on foot of contacts with the HSE last night.
Fianna Fáil Dublin South Central TD Michael Mulcahy said the HSE should accept independent arbitration.
"This notion that they should sign contracts and then sit down and negotiate is absolutely ridiculous. Once the interim contract is brought in, that's it."
Reflecting the deep anger felt by many FF TDs now towards the HSE, Mr Mulcahy said: "The HSE has been high-handed. They will drive them out of business, and we will be left with a few super- chemists. Then we may all as well trot along to Walmart."
Equally, however, TDs have been angered by the pharmacists' decision to raise fears among some customers about their prescriptions. "I'll guarantee you one thing. If they deny one prescription my door will close and it will stay closed," one FF TD said privately.
Fianna Fáil TDs believe that they had a commitment from the HSE last November that it would negotiate a deal with the pharmacists, and they no longer accept assurances that the pharmacists would be compensated for lower fees by lower bills from drugs wholesalers.
However, the IPU in December rejected a two-phase negotiation under the auspices of a senior counsel that would have separated the pharmacies most dependent upon medical card contracts from the rest.
The country's biggest drugs wholesaler, United Drug, in a letter yesterday to the Oireachtas committee, has rejected a HSE claim that a deal exists with wholesalers to absorb a price cut.
Company executive Alan Ralph warned TDs that the new HSE contract would force it to review contracts with smaller chemist shops. "We will end up not being able to deal with many of our smaller customers anymore because it is not commercially viable for either of us to deal with each other," he said.
