PURCHASE OF LOCALLY-PRODUCED MEDICINES AND DRUGS (Government policy)

Mr Bernard Rodrigues asked the Minister for Health what is the policy in regard to the purchase by his Ministry of locally-produced medicines and drugs, which are comparable in quality to the corresponding imported articles, when the price of the locally-produced article is higher than that of the imported article.

The Parliamentary Secretary to the Minister for Health (Mr Sia Kah Hui) (for the Minister for Health): Mr Speaker, Sir, I am pleased to inform the Member for Telok Blangah that it is Government's policy to give positive encouragement regarding the use of local products, and in line with the policy a directive was given on the 14th of December, 1965, to all Government departments and statutory bodies by the Economic Development Division of the Ministry of Finance on the subject of preferential purchase of locally manufactured products. To implement such a policy of giving preference to locally-manufactured goods, a preferential price margin of up to 5 per cent of the tendered price of an equivalent imported product is generally allowed. In certain instances, such as the bulk purchase of medicines and drugs, the preference price margin might even be higher.

Mr Bernard Rodrigues: A supplementary question, Mr Speaker, Sir, if I may have your permission to break it into three parts?

Mr Speaker: Is it one question or three questions?

Mr Bernard Rodrigues: A supplementary in three parts.

Mr Speaker: Can we have the first part first?

Mr Bernard Rodrigues: All right. First, Mr Speaker, is the Minister aware that his Ministry is purchasing P.A.S. tablets from a local factory at $4.38 cents per thousand tablets, whereas the cost of such tablets, after deducting the sales cost, is $4.45 cents per thousand tablets?

Mr Speaker: What tablets are you referring to, Mr Rodrigues?

Mr Bernard Rodrigues: P.A.S. tablets, Sir.

Mr Sia Kah Hui: As far as I can remember, the contract was given to a local firm to supply this particular drug at a cost that is much higher than the imported product of the same kind. If the company is going to have very heavy manufacturing costs, I do not think Government is expected to bear the burden. As I have said earlier, there is already a margin of up to 5 per cent, and, in fact, in medicines and drugs, the preference price margin is even higher, especially in this particular case.

Mr Bernard Rodrigues: Mr Speaker, second part - is the Minister aware that S.A.T.A. is purchasing the same tablets at $5.50 per thousand tablets from the same factory compared to the Government's $4.38 cents per thousand tablets?

Mr Sia Kah Hui: I am afraid I have no answer to that, because S.A.T.A. is not a Government institution.

Mr Bernard Rodrigues: Mr Speaker, Sir, is the Minister aware that his Ministry is even trying to reduce the price of $4.38 at the moment?

The Minister for Finance (Mr Lim Kim San): Good for him!

Mr Speaker: I think the Minister for Finance has answered that question.

Mr Bernard Rodrigues: I did not get that one, Mr Speaker, Sir.

Mr Speaker: He said, "Good for him!"

Mr Bernard Rodrigues: Then may I ask the third part of the question, Mr Speaker? What is the Government's policy in patronising local industry?

Mr Sia Kah Hui: As I have said earlier, there is already this price margin of 5 per cent, and in medicines and drugs the margin is even higher. I do not think there should be no limit to the price that the local company can ask. There must be a limit.