REPORT OF THE REVIEW OF BLOOD FRACTIONATION ARRANGEMENTS

The Australian Institute of Medical Scientists (AIMS) strongly supports the recommendations of the report of the Review of Australia's Plasma Fractionation Arrangements (the Flood Report).

The Review's conclusion that overseas fractionation of Australian plasma is not an advantageous option for Australia is its first, and probably its most important, recommendation. The recommendation that Australia should maintain its reservation regarding the procurement of blood fractionation services under the Australia-United Stated Free Trade Agreement is also significant. The reservation exempts the procurement of plasma fractionation services from the government procurement provisions in Chapter 15 of the Agreement.

As the Report notes, Australia's arrangements with respect to the supply of fresh blood and blood products are unique in the world, and the contribution made by Australian blood donors is crucial to this. The Report has also highlights the roles of the Australian Red Cross Blood Service, CSL Limited, the National Blood Authority and the Therapeutic Goods Administration. Australians have a justifiable confidence in our blood service, described in the Report as "world class" and any moves that could jeopardise the standard must be viewed with alarm.

The Report outlines many reasons for not permitting fractionation of Australian plasma to be moved offshore. These include substantial initial and ongoing costs, extensive transitional planning and contingency plans, risk mitigation plans, a doubling in lead time "vein to vein" and the probability that an offshore fractionator's yield of intravenous immunoglobulin would be less than the yield currently realised by the Australian fractionator.

The Report also makes reference to significant potential risks associated with offshore fractionation of Australian plasma. Among these would be the risk of a major global disaster or international event that could jeopardise delivery of international supplies.

Ideally, Australia should be self-sufficient in blood products. As recommended by the Report, urgent action must be taken to increase plasma collection rates.

AIMS notes with concern the media release of 15 December 2006 from the office of the Federal Minister for Health, the Honourable Tony Abbott MHR. This media release, while acknowledging that the report recommends the continuation of the current arrangements for blood fractionation services, goes on to state: "In accordance with the government's commitment under the AUSFTA, the Commonwealth is recommending that future arrangements for the supply of such services be done through tender processes consistent with AUSFTA Chapter 15 (Government Procurement).
The review report recommends a different outcome."

In line with the National Blood Agreement, all State and Territory Governments must agree with the Commonwealth's recommendation before any change in policy can take place.

The Australian Institute of Medical Scientists urges the Federal Government to reconsider this recommendation. AIMS also urges all State and Territory Health Ministers not to agree to this policy change, but to maintain the current arrangements for blood fractionation.

30 January 2007