Labor and Coalition shoot back at criticism, with the PM saying subsidies on medicine ‘isn’t about delivering for big pharma’Follow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastAustralia’s successful scheme for heavily subsidising the price of vital medicines is “not up for negotiation” as part of new American tariff threats, Anthony Albanese says, after US pharmaceutical companies complained to Donald Trump about how it damaged their profits.Labor and the Coalition have both shot back at criticism of the Pharmaceutical Benefits Scheme from America’s pharmaceutical industry, after the government announced – and the opposition quickly matched – plans to publicly subsidise medicines even further.Sign up for Guardian Australia’s breaking news email Continue reading…Labor and Coalition shoot back at criticism, with the PM saying subsidies on medicine ‘isn’t about delivering for big pharma’Follow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastAustralia’s successful scheme for heavily subsidising the price of vital medicines is “not up for negotiation” as part of new American tariff threats, Anthony Albanese says, after US pharmaceutical companies complained to Donald Trump about how it damaged their profits.Labor and the Coalition have both shot back at criticism of the Pharmaceutical Benefits Scheme from America’s pharmaceutical industry, after the government announced – and the opposition quickly matched – plans to publicly subsidise medicines even further.Sign up for Guardian Australia’s breaking news email Continue reading…
Australia’s successful scheme for heavily subsidising the price of vital medicines is “not up for negotiation” as part of new American tariff threats, Anthony Albanese says, after US pharmaceutical companies complained to Donald Trump about how it damaged their profits.
Labor and the Coalition have both shot back at criticism of the Pharmaceutical Benefits Scheme from America’s pharmaceutical industry, after the government announced – and the opposition quickly matched – plans to publicly subsidise medicines even further.
Albanese stopped short of saying he trusts Trump when asked in a radio interview on Thursday about the escalating trade tensions, but the prime minister said he would not countenance changes to the PBS to avoid American ire.
“He [Trump] is entitled to pursue his agenda, of course. But I’m entitled to defend Australia’s national interest and that’s what we’re doing,” Albanese told ABC radio.
“It is not surprising that big pharma don’t like a scheme that isn’t about delivering for big pharma – it’s about delivering for Australians.”
After Australia was included in worldwide steel and aluminium tariffs, US officials are considering a broader suite of global tariffs on goods such as medicines and meat – both among Australia’s chief exports to America.
In a submission to the US government, the Pharmaceutical Research and Manufacturers of America (PhRMA) claimed “egregious and discriminatory” pricing policies in places such as Australia, Canada and Japan were undervaluing American innovation, threatening billions in lost sales and putting American competitiveness, jobs and exports at risk. The group particularly criticised the PBS system, for not only dictating access to the Australian market but for also requiring what they called “unnecessary” extra data from pharmaceutical companies and administrative delays in listing new medicines. It also claimed the pricing policy could have a “chilling effect”, preventing faster access to new medicines.
The submission raised concerns Australian pharmaceuticals could come under US tariffs without changes to the PBS, but Albanese and the opposition leader, Peter Dutton, both said they would not countenance changes to the system.
Dutton in a major foreign policy speech to the Lowy Institute said the protection of the PBS would be “paramount” and “sacrosanct” in any trade agreements.
“I want the Australian people to know that I will stand up and defend the PBS – which is the envy of the world – against any attempt to undermine its integrity, including by major pharmaceutical companies,” he said.
“We will work with our most important ally, the US, but we will fight against any big drug company imposing tariffs on our PBS.”
The deputy opposition leader, Sussan Ley, a former health minister, said in a press conference: “American pharmaceutical companies, hands off our PBS.”
Formally announcing Labor’s plans to cut the price of PBS-listed medications to a maximum $25 per script, Albanese said the PBS would not change, and had been included in trade negotiations.
“This is not for sale and is not up for negotiation. This is a part of the free trade agreement [with the US] because Labor insisted as a condition of our support for the free trade agreement. The Pharmaceutical Benefits Scheme is a part of who we are as Australians and we will always stand up for it,” he said.
“Tariffs are an act of economic self-harm. They increase the price at the point in which sale or purchase of Australian goods occurs and that is our position, we have put it forward very strongly … the imposition of tariffs is certainly not in their interest of the United States and obviously is not in the interest of Australians either.”
In an ABC Melbourne radio interview, Albanese further pledged: “Under Labor it never will be on the negotiating table.”
Host Raf Epstein asked Albanese: “Do you trust Donald Trump?”
Albanese replied: “Well, what sort of question is that? I mean, he’s the president of the United States.”
“He’s elected as the president of the United States. I’m the prime minister for Australia. He’s entitled to pursue his agenda, of course. But I’m entitled to defend Australia’s national interest and that’s what we’re doing.”
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