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How does the operation of PHARMAC's 'Community Exceptional ...

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services to members <strong>of</strong> <strong>the</strong> public provided by <strong>the</strong>ir members (PB/109w NZ<br />

Charter <strong>of</strong> Health Practitioners Inc., 2000).<br />

The Ministry <strong>of</strong> Health advised that no change to <strong>the</strong> Bill was necessary<br />

because <strong>the</strong> Minister had set up a Ministerial Advisory Committee on<br />

Complementary and Alternative Healthcare. The work <strong>of</strong> <strong>the</strong> committee<br />

combined with <strong>the</strong> functions <strong>of</strong> <strong>the</strong> National Health Committee will provide<br />

information on <strong>the</strong> benefits <strong>of</strong> alternative <strong>the</strong>rapies. It would also be expected<br />

that <strong>the</strong> knowledge and experience <strong>of</strong> PHARMAC in completing cost-benefit<br />

analyses <strong>of</strong> complementary medicines will be utilised in this process (PB/MOH<br />

8 Ministry <strong>of</strong> Health, 2000).<br />

The Select Committee Report-Back on <strong>the</strong> Submissions<br />

The submissions which <strong>the</strong> Health Select Committee received on <strong>the</strong> Bill<br />

relating to PHARMAC (not all o<strong>the</strong>r parts <strong>of</strong> <strong>the</strong> Bill) have been outlined and<br />

discussed. In relation to PHARMAC, <strong>the</strong> Select Committee recommended<br />

several matters which were <strong>of</strong> a technical nature but did not alter PHARMAC’s<br />

exemption from Clause II <strong>of</strong> <strong>the</strong> Commerce Act. The Committee did not<br />

recommend any detraction from <strong>the</strong> original purpose <strong>of</strong> <strong>the</strong> Bill, as far as <strong>the</strong><br />

establishment <strong>of</strong> PHARMAC or any <strong>of</strong> its functions were concerned. The<br />

Committee did recommend major changes to <strong>the</strong> Bill in relation to references to<br />

<strong>the</strong> Treaty <strong>of</strong> Waitangi, <strong>the</strong> structure and functions <strong>of</strong> DHBs, <strong>the</strong> matters relating<br />

to transferring <strong>the</strong> ownership <strong>of</strong> PHARMAC from <strong>the</strong> DHBs to <strong>the</strong> Crown.<br />

These changes were reported back in early December 2000 and Parliament<br />

passed <strong>the</strong> NZPHDA 2000, which came into law by Royal Assent 43 on <strong>the</strong> 14 th<br />

<strong>of</strong> December 2000.<br />

Section 2: Walsh v. PHARMAC<br />

The following section is written from Justice Gendall’s decision in <strong>the</strong> Court <strong>of</strong><br />

Appeal <strong>of</strong> New Zealand in <strong>the</strong> case Walsh v. PHARMAC (BC200860616).<br />

Much <strong>of</strong> this text is taken in paraphrase or quotation from Justice Gendall’s<br />

written judgment. Where sections <strong>of</strong> <strong>the</strong> judgment have been quoted in <strong>the</strong><br />

43 A constitutional tradition requires <strong>the</strong> New Zealand Governor General to provide Royal Assent to legislation passed by<br />

Parliament.<br />

128

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