Australian Five-Year Plan To Support Pharma Industry

Federal cabinet endorsement was given earlier this month to theAustralian Howard government's first major industry development program, which agreed to a new A$300 million ($232.9 million), five-year support scheme for the pharmaceutical industry, local sources report.

The cabinet agreed "to replace the present Factor (f) scheme, which expires in mid-1999, with a more modest program better directed at new entrants and exporters." The new scheme was designed to promote investment in the industry; details of the eligibility guidelines would be negotiated between the Industry Ministry and concerned drug companies.

Compensation is paid to the industry to offset the government's drug purchasing monopoly through its Pharmaceutical Benefits Scheme. The new plan would reduce the compensation rate from 25% to 20%, despite the Productivity Commission recommending it be cut to 15%.