Treasurer takes razor to generics campaign

Graham Smith

In the federal budget handed down last week, the government cut $15 million from the allocated $20 million originally set aside for the campaign as part of the former government's PBS reform package.

In its original reform proposal the former Coalition government allocated funding to promote generics in the lead-up to changes taking effect from 1 August this year.

The Labor government, however, believes the incentive payment of $1.50 per prescription paid to pharmacists when they dispense a generic will be sufficient to promote the use of generic medicines among the public.

"The government's budget decision to cut funding for a generic medicines public awareness campaign from $20 million to $5 million is extremely disappointing," said Mark Hurley, chairman of the Generic Medicines Industry Association.

"On approximately 28 million times last year, consumers paid a premium for their medicines, which may not have been necessary if they had been more confident about choosing a generic brand," said Mr Hurley.

He said that during last year's Parliamentary debates on the changes to the PBS, Labor opposition members had supported the allocation of funds for the campaign, and committed to monitoring its roll-out to ensure it was effectively targeted.

"To now have them cut the funding for the campaign to just one-quarter of what was originally announced means the public information campaign and the community have been short-changed," Mr Hurley said.