§ Mr. Pavitt
asked the Secretary of State for Social Services why the payment was made by the National Health Service to the drug companies of £4,550,000 in 1975– 480W 76 which was subsequently given back because it was an overcharge.
§ Mr. Moyle
The payments mentioned by my hon. Friend are payments made for medicines prescribed under the NHS. The repayments relate to profits revealed in annual financial returns made under the pharmaceutical price regulation scheme. Most of the £4,550,000 was repaid in accordance with the agreement with Hoffman La Roche announced to the House on 12th November 1975 by my right hon. Friend, the then Secretary of State for Prices and Consumer Protection,—[Vol. 899, c. 1543–7.] The balance of £80,000 consisted of payments under a paragraph of the pharmaceutical price regulation scheme which provides that, in the event of negotiations on price changes not being completed within a prescribed period after an annual financial return is due, any change will nevertheless have effect from that date, if necessary by payments or other adjustments having equivalent effect.