MINISTER ACCUSED OF FUNDS DIVERSION

Federal Health Minister Michael Wooldridge was accused last night of
snatching funds from vital methadone programs to support John Howard's
pledge to fund new medical research centres in Melbourne and Sydney.
Opposition health spokeswoman Jenny Macklin, speaking after the Health
Department admitted it would underspend by $15 million on methadone
programs, said it was clear this money had been diverted to the research
centres.

"This money has been secretly diverted to pay for the federal Government's
contribution to the Bio21 project in Melbourne and to match a donation (by
Kerry Packer) for the New Children's Hospital research program in Sydney,"
she said.

Dr Wooldridge announced the extra $15 million for research in June after
the Prime Minister pledged to match a donation by Mr Packer. Ms Macklin
said last night what while the research projects were worthy the Government
was "meant to provide new money - not money that was siphoned out of an
essential program that was saving lives".

But a spokeswoman for the Health Minister said last night the Government
had committed millions of dollars to the fight against drugs.

She said if the $15 million wasn't spent in one year, it was likely to be
spent the following year.

The Health Department also admitted yesterday that it had not sought legal
advice on whether controversial former drug industry representative Pat
Clear had a conflict of interest in his role on the Pharmaceutical Benefits
Advisory Committee. A spokeswoman for the department said it had been its
view that he "did not have ongoing links with the pharmaceutical industry".

Mr Clear's appointment came under attack from the Opposition over his link
as a director to biomedical company Fu-Cell. The appointment also triggered
claims by other committee members its independence would be undermined. The
committee determines which drugs are listed on the Pharmaceutical Benefits
Scheme.

The department also confirmed it had provided a briefing to John Howard
ahead of his meeting in November with 10 drug companies in his electorate
of Bennelong. The Prime Minister's Office had also sent a briefing note to
parliamentary secretary Grant Tambling's office following the meeting on
November 14.

Mr Howard has denied any discussion of the PBAC took place at the meeting.