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NEHAWU: Statement by the National Education, Health and Allied Workers' Union, establishment of a state owned pharmaceutical company is the only way to deal with greedy and immoral private pharmaceutical companies (20/01/2014)

NEHAWU: Statement by the National Education, Health and Allied Workers' Union, establishment of a state owned pharmaceutical company is the only way to deal with greedy and immoral private pharmaceutical companies (20/01/2014)

20th January 2014

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NEHAWU denounces the wicked attempts by pharmaceutical companies to obstruct the adoption of the National policy on Intellectual Property as a way of reducing the price of medicines and improve medication access for the vulnerable in our society.

We fully support the Minister of Trade and Industry, Dr Rob Davies and the Minister of Health, Dr Aaron Motsoaledi in their determination to ensure the successful adoption of the Draft National Policy on Intellectual Property.

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True to form, the drug companies, through their umbrella organisation, Innovative Pharmaceutical Association of South Africa (Ipasa) commissioned a Washington-based lobbying firm, Public Affairs Engagement, to lead their charge.

The basis of this campaign has nothing to do with promoting access to affordable health care (in this case, medicine) but has everything to do with companies making more money.

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This vindicates us, because as a union, we have consistently warned against the destructive greed of these companies and called for the establishment of a state owned pharmaceutical company.

We are not surprised to see these companies engaging in underhand means such as pressuring our allies in Africa, undermining the work of progressive NGOs and commissioning “independent” research to transmit their message that this policy will threaten economic and social instability.

The Minister of Health, Dr Aaron Motsoaledi is right to characterize the actions of these companies as genocidal but, we should also remember that these people make their money from commodifying and prolonging sickness and not from curing it.

It is therefore naïve of us to believe that they will have any self restraint. They are motivated by avarice and will do anything, including dishonest and anti-social conduct to make money because they view the world through the prism of reactionary proprietors.

Without this proposed policy on Intellectual Property, NEHAWU contends that the ultimate loser will be South African citizens who would be dependent ,for their life-saving drugs, on the expensive patent drugs as they will no longer have access to cheaper generic drugs.

This will not only affect those living with HIV and Aids but will impact on drugs for all conditions from high blood pressure, to asthma ,to treatment of injuries, headaches, allergies and beyond.

Studies have consistently shown that the major cost driver of the public and private health systems are the medicines.

Although there is increasing local production of medicines in the country there is still a dependence on importing medicines, which are often patented medicines, produced by multi-national companies and these are increasingly unaffordable.

We are therefore in full support of the identification in the Industrial Policy Action Plan (IPAP) of the expansion of domestic pharmaceutical production as one of its apex priorities.

Our research shows that the impact of the improvement in distribution which will result from the proposed establishment of a national health insurance and the establishment of a state-owned pharmaceutical company is the most sustainable way of expanding domestic production to meet the country’s needs.

Government’s reliance on these private pharmaceutical companies also does not make economic sense.

The pharmaceutical industry has lost production capacity and skills with the pressure on pricing coming from imported medicines.

The Minister of Trade and Industry has acknowledged that South Africa is now importing pharmaceutical products which were previously manufactured in this country, and that the pharmaceuticals sector is the fifth largest contributor to South Africa’s import burden.

What is intolerable is the failure of the ANC led government to implement the decision that was taken by the ANC in its 52nd Polokwane National Conference, to establish a state owned pharmaceutical manufacturing entity.

This is essential to the attainment of the health targets of the country and will also increase the capacity of the state to provide an uninterrupted supply of medicines at a scale which the National Health Insurance will require.

This will also help us to cope with our disease burden. In addition to having one of the highest number of people living with HIV/Aids and TB in the world, we are also seeing an increase in the spread of non-communicable and lifestyle diseases in the country. If we are to better our already improving life expectancy, we need to ensure that medication is affordable and accessible to all.

NEHAWU members will not allow the hard-gained successes of our ANC government to be whittled away by the rent seeking behaviour of these private pharmaceutical companies.

We will also be vigilant in monitoring the present attempt by CFR in Chile to buy our local manufacturer Adcock.

We will mobilise to fight in support of the Public Investment Corporation (PIC) in its attempt to ensure that this company remains under local ownership and control.

- See more at: http://www.cosatu.org.za/show.php?ID=8345#sthash.62tq75pT.dpuf

 

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