Dr Trevor Mudge, AMA Vice-President, with Sharon McKenzie, SKY Television

And joining me now is Dr Trevor Mudge from the Australian Medical Association. Well, Dr Mudge, does the Government have a responsibility to fund this drug?

MUDGE: Well, we would think so. But, of course, the Government also has a responsibility to be careful with taxpayer's money. And therein lies the dilemma, I think, with the rising costs of new medical treatments, including drugs and other techniques. Then I think society has to have a debate about what forms of medicine we can afford to pay for through the public purse, and what forms of medicine that individuals themselves would have to pay for.

McKENZIE: So do you think it's solely cost-based? Do you think that's what is behind the Government's decision here?

MUDGE: I'm sure it's solely cost-based. And it's not alone. I mean, at the moment, the only debates we've had about Medicare paying for things have been for cosmetic surgery and reduction of male or reversal of male or female sterilisation. There is no doubt that with the PBS, the pharmaceutical benefit costs, rising by 20 to 25 per cent per year, that we do have to look very carefully at these sorts of decisions.

Now, the medical profession has always argued that Viagra should be available for medical need. That is for those with spinal injury and those with diabetes, etcetera. There is a small list of men for whom this drug will restore them to a normal sexual life. And it seems a bit unkind that they're not going to be subsidised, either.

McKENZIE: There are groups that are saying, I guess, or supporting the government's move saying, 'Well, Viagra is not a life-saving drug, so why should it be funded?' Is that the way that you would see it?

MUDGE: Well, I think that, you know, when I was a medical student, most of medicine was about life and death. And if you couldn't afford a doctor then society really does have an obligation to provide one for you. Now, a lot of medicine now, is about lifestyle modification, rather than life and death. The demand for lifestyle modification is bottomless, almost by definition. And every country in the world is struggling with rationing health care, either by waiting lists, or by costs signal or a combination of both.

McKENZIE: So how many people rely on these drugs? How many people are going to lose out here?

MUDGE: We think it's only a small number. I mean the figures aren't available, but if it were confined to only those who had a genuine medical need, then it wouldn't cost very much at all. I think the concern would be that its availability would see it handed out as the latest lifestyle drug at rave parties. Now, that might cost the taxpayer a bit.

McKENZIE: It certainly would. Dr Trevor Mudge, thanks very much.

MUDGE: You're welcome.

Ends