TGA fee hike under fire from industry

A coalition of biotechnology and pharmaceutical industry associations, including AusBiotech and the Generic Medicines Industry Association, have sent a letter to the Minister for Health requesting that the recent Therapeutic Goods Administration fee increases be reviewed and wound back.

The TGA recently announced it would increase all fees and charges by 5.6 per cent, with 2 per cent of the increase to specifically fund the transparency and community outreach programmes as a part of the TGA reforms announced late last year. The fee hike took effect from 1 July this year.

The industry groups are specifically appealing the fairness of the additional 2 per cent fee increase, arguing that this is funding a public good, and thus should be paid for by government rather than industry.

“To ask an industry that’s under economic difficulties to find an additional 2 per cent in fees is unreasonable,” said Kate Lynch, CEO of the Generic Medicines Industry Association.

“That money will be going to fund the TGA’s community services, providing information and interaction with the community about what the TGA does. That’s a public good, and as a consequence it should be funded by the public sector. To ask the industry to deliver a public good is outside the TGA’s funding guidelines.”

The TGA is a self-funded body, with its fees charged proportionally to the level of service provided.

A spokesperson for the TGA has defended the fee increase, but has acknowledged that consultation with industry will continue.

“We understand that this increase was discussed with key industry representative bodies earlier this year, and that the TGA will continue to consult throughout the reform process.

“We acknowledge that the potential impact the fee increase may have on industry, however all industry sectors will benefit from these important reforms.“