No, it was not. It was in Michigan, so the member can guess from that.
We have a tendency to take these important issues and make them too simplistic. Most of us will have to go to the history books for this, although a few might remember. Around the turn of the century, in 1918, a terrible flu hit this country.
I remember visiting a small village in northern B.C.. The flu of 1918 wiped out the whole village. This winter a new strain of flu, the Sydney A, has already claimed 10 Canadian lives. I mention this because to this end Canadians have learned to depend on medicine to protect us. Even more so Canadians rely on an industry that produces and makes available the prescription drugs that maintain their health. With that neither member who has spoken would interfere.
In this respect the pharmaceutical industry is one of the most important and most lucrative industries worldwide. In any country with a major pharmaceutical interest, the health of the industry as well as the health of its citizens must be considered a factor.
Because the industry is so lucrative and a significant portion of the economy relies on the industry's success, namely employment and investment in research and development, governments around the world are presented with a difficult task of balancing economic interests with very important social interests.
We are here today debating my colleague's bill because many Canadians feel that the balance has shifted. The hon. member who introduced the bill will say that it has shifted too far in one direction. He will say that it has shifted toward the interests of the industry and no longer considers the interests of Canadians. That is basically what he is saying in his bill.
I repeat that there is some truth to this. But whether it is good for the economy or meets our social objectives, we must remember that first and foremost the pharmaceutical industry exists to provide prescription drugs to Canadians. Huge profits, jobs, research and development are important spinoffs, as the Liberal member mentioned.
In Canada people say that they take pride in our health care system. We believe it is the best in the world and we want to keep it that way. Canadians find great solace in the fact that barring everything else which concerns them, an affordable medical system must be kept in place.
We know it matters not whether we are rich or poor, illness is illness and the requirement for medication should know no bounds. We also know that the chronically ill, seniors or children are vulnerable and therefore must have access to affordable medical assistance. This is particularly true for seniors and the chronically ill. They cannot afford to live in a country where the cost of medicine is too high. I commend my colleague for recognizing this and for putting forth his efforts to improve the situation.
However in debating this bill I would like to make certain recommendations which I feel would accomplish our goal more efficiently and more effectively. In saying this I am indicating that I have certain problems with my colleague's bill and I will lay these out for the consideration of the House.
My colleague says that the 20% patent protection for brand name pharmaceuticals is the cause of the cost of drugs being too high. I would suggest that is being a bit too simplistic. There are clear benefits to patent protection, not the least of which is the contribution made to research and development both in the performance of it and in the generation of it that goes into this country. It is precisely this kind of research which brings Canadians the breakthrough they need to counter the effects of the flus we are seeing right now, such as the Sydney A.
Important commitments have been made by the brand name pharmaceutical companies. A program between the PMAC and the Medical Research Council was initiated for research and development with a budget of around $250 million. That is a huge sum of money. Such agreements among sectors make an important contribution by fostering basic research in the pharmaceutical and biotechnical fields in Canada's universities and research industry.
PMAC member companies have also made commitments toward an R and D to sales ratio. As a result they have made a contribution to applied research, an important tool in achieving Canada's economic well-being.
However these commitments have not produced a perfect system. My colleagues are seriously concerned that the commitments made by the brand name pharmaceutical companies to invest in research and development are in no way assured. The Liberal government has not ensured that these agreements are binding. That is a problem for the people of Canada. It is certainly a problem for the Reform Party.
We believe that the generous patent protection given to the brand name companies must be incumbent upon the willingness of the PMAC to make binding commitments to the research and development of new drugs in Canada. Not only do pharmaceuticals gain from a competitive patent protection, they also gain from the most generous R and D tax write-offs in the world.
Based on this we believe the government should be seeking a binding commitment from this sector. We do not have that. That to me is the real guts of this bill. I agree with the hon. member on that point. The participation of the pharmaceutical industry in Canada is so important in building a strong knowledge based economy, but we must have some proof that this is happening. I would like to see the member's bill emphasize this.
Maintaining the 20 year patent protection is in keeping with the patent protection of our global competitors. By ensuring this applies in Canada we can compete in the investment made by the pharmaceutical industry which enhances our economy. But in entering into this relationship we must ensure the integrity within this agreement by seeking binding commitments. Today we do not have that.
I would suggest to the originator of this bill that rather than tinker with the number of years on the patent protection that exists now, accept the 20 year patent protection to ensure Canada's competitiveness, but also ensure that the promises are binding. The government has the responsibility to see that they produce real benefits as a result of the initiatives of this industry.