Better health and ageing for all Australians

1997-1998

Australia's Commonwealth Department of Health and Family Services, Budget Document 1997-98

New speech processors for deaf children and increased funding for the reform of food regulation in Australia are among Budget initiatives outlined today by the Parliamentary Secretary to the Minister for Health and Family Services, Senator Chris Ellison.

Senator Christopher Ellison
Parliamentary Secretary to the Minister for Health and Family Services

Government funds for food hygiene reform and new service for profoundly deaf children

New speech processors for deaf children and increased funding for the reform of food regulation in Australia are among Budget initiatives outlined today by the Parliamentary Secretary to the Minister for Health and Family Services, Senator Chris Ellison.

Senator Ellison said the Government would increase operational cost recovery from industry for the regulation of therapeutic products and outlined a number of measures which will ensure the ongoing value-for-money of the Pharmaceutical Benefits Scheme.

Help for hearing impaired children

"Just under $2 million has been allocated over the next four years to provide new or upgraded speech processors to children who rely on cochlear implants to hear" Senator Ellison said.

"Cochlear implants are used by profoundly deaf people who do not benefit from even the most powerful types of hearing aids".

"From July this year, the Commonwealth's Hearing Services Program will give about 380 children with cochlear implants the chance to obtain improved and updated speech processors" Senator Ellison said.

"This will allow these children to attend mainstream schools and ensure they are not disadvantaged because of their reliance on high levels of technology."

The Australia New Zealand Food Authority (ANZFA)

Senator Ellison said the Government has removed a source of uncertainty for the Australia New Zealand Food Authority (ANZFA) and its partners by providing $9.5 million in funding over the next four years for work in three key areas to reform the system of food regulation.

"ANZFA has publicly released a draft food hygiene standard and explanatory notes. The additional funding will enable the further development and implementation of this standard and associated codes of practice" Senator Ellison said.

"Food poisoning results in considerable costs to the community and to industry."

"This measure will result in health care savings as well as boosted consumer confidence in domestic and export food markets."

The new system will be developed at a cost of just under $4 million over the next three years, with staged implementation from 1999, and will involve consultation with industry, consumers and State and Territory Governments.

Senator Ellison said $0.3 million had been set aside for a review of food regulation and of ANZFA legislation in 1997-98, with the aim of improving industry competitiveness by reducing regulatory obstacles.

"The Government had also committed more than $5 million over the next four years for measures including looking at proposed changes to the Food Standards Code aimed at making the industry more innovative and efficient, and continued development of a joint Australia New Zealand Food Standards Code."
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Therapeutic Goods Administration (TGA)

Senator Ellison said recent announcements which would assist industry include a new program to follow the existing Factor(f) scheme and extension of standard patent terms. These demonstrate the Government's commitment to ensuring the viability of the Australian industry.

"The Government would also move to increase cost recovery from industry for the regulation of therapeutic products to l00 per cent over the next two years, building on an initiative announced in last year's Budget.

The level of cost recovery through industry contributions would rise to 75 per cent in 1997-98 (rather than by 1998-99 as outlined in last year's budget) and to 100 per cent from 1998-99, resulting in an increase in revenue of some $32 million over the next four years.

"With industry turnover estimated to be more than $4 billion, the proposed increased industry contribution represents a very small percentage of this amount," Senator Ellison said.

"At the same time, a range of initiatives are currently underway which would improve the regulation of medicinal products in Australia."

The measures were outlined in the Government's recent response to recommendations arising from a review of the TGA, and in its statement on the regulation of medicinal products.

"Industry and consumers will benefit from a more streamlined and efficient approach to the entire regulatory system," Senator Ellison said.

"The reforms will meet patient demands for better access to a wider range of high quality, safe medicinal products, and make Australian businesses even more competitive in the international arena."

Pharmaceutical Benefits Scheme (PBS)

Senator Ellison said the Federal Government would implement a number of measures to ensure the ongoing value-for-money of the Pharmaceutical Benefits Scheme (PBS), and to support quality, cost-effective prescribing of medicines:

  • around $22 million would be provided over the next four years to set up a National Prescriber Service to help doctors develop best practice clinical standards for prescribing medicines. As a result, net savings of just under $24 million over the next four years are expected due to improved prescribing practices;
  • from 1 February next year, the Government would extend the practice of price premiums beyond generic brands of a drug to groups of drugs with similar clinical effects; and
  • some less important medicines would be deleted from the PBS.

"While Australia's health care system provides excellent equity of access to health care for the community, it is important to ensure that the people who use the system - both doctors and patients - take cost into account in reaching treatment decisions," Senator Ellison said.

Contact: Stephanie Wood (Senator Ellison's office) (06) 277 3683 or 0412 257 563
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