John Key

Health Minister David Cunliffe is questioning where the money would come from to fund National's new medicines policy.

National released the medicines plank of its health policy today pledging to increase funding for subsidised medicines by $40 million in 2009-10.

Over the following two years further boosts would increase the extra funding to $60m, then $80m.

The new money would cover the party's previously stated commitment to fund a full year's Herceptin treatment for breast cancer sufferers -- expected to cost an extra $9m per year above current Herceptin costs.

It would also work on improving the mechanism for people to get unfunded, high-cost or highly specialised medicines and would give greater recognition to prior registration of medicines in Australia; the United States; United Kingdom and European Union and Canada to speed up medicine approvals for use here.

National leader John Key said the initiatives would be funded within the indicative health spending allocations in the pre-election fiscal and economic update.

"They are also further examples of our determination to shift spending into frontline services for patients, rather than backroom costs."

Mr Cunliffe responded: "National wants, according to its policy, to take money from the current health budget and increase (Government drug funding agency) Pharmac spending? So just where are they getting the money from?"

He suggested National were planning to dump the Government's subsidy for prescriptions which reduced the cost to $3.

National health spokesman Tony Ryall said his party would not cut the subsidy.

The Research Medicines Industry Association welcomed the policy.

RMI chairwoman Pippa MacKay said many New Zealanders have suffered needlessly because of limited access to medicines.

"(Increased funding) will go a long way towards ensuring that finally New Zealanders can have access to those medicines that have received a positive recommendation for funding based on a clinical assessment of the benefits that they can deliver," Dr MacKay said.

This morning Mr Key said about 12 percent of New Zealand's public health spending went on medicines compared to an average of 18 percent in the OECD.

Public funding per person on pharmaceuticals in New Zealand was two-thirds of what it is in Australia.

"This boost in medicines funding will mean real per-person funding for medicines will gradually increase under a National-led Government. It will broaden access to medicines for many New Zealanders."