Retailers fight for pharmacies

By SIMON HENDERY

The Retailers Association is claiming the public backs its push for a law change which would open the way for pharmacies in supermarkets and department stores.

Parliament's health select committee is considering the issue and the association yesterday presented the committee with its research - from focus groups and a 1000-person telephone survey - which showed 64 per cent support for the concept.

The research was carried out in May and June last year but association chief executive John Albertson said it remained pertinent because at the time the Pharmacy Guild "was in the middle of a high-profile scare campaign to try to retain the monopoly its members have on owning a pharmacy".

The guild argues that if large retailers are allowed to own chemist shops - which would still be managed by registered pharmacists - community pharmacists will be lured away from small centres to more lucrative jobs with large operators.

The select committee, which sat in Wellington yesterday, is considering the matter as part of the Health Practitioners Competence Assurance Bill, under which non-pharmacists would be allowed to own up to 49 per cent of chemist businesses. The association wants the cap removed entirely.

Guild president Richard Heslop said yesterday the association's survey was misleading because it had asked slanted questions.

"The new legislation [as proposed under the bill] will allow pharmacies to be opened in supermarkets if that makes better sense than present arrangements," Heslop said.

"But pharmacists will have to own at least 51 per cent of the shares in such an operation and be personally accountable for the pharmacy. Supermarkets have made it clear that they want total control of this market. This is not in the public's interest and if overseas experience is any indicator it will not promote a quality health system."

Foodstuffs told the committee yesterday that removing pharmacists' monopoly control over chemist-shop ownership would reduce the cost of prescription medicines, extend opening hours and benefit rural locations.

"Open ownership will result in a greater number of pharmacies, wider geographical spread of pharmacies, benefiting rural populations, and will lower the price of medicines and other pharmacy-only products," Foodstuffs managing director Tony Carter said.

Progressive Enterprises general manager merchandise Mark Brosnan told the committee pharmacies mark up over-the-counter medicines by more than 100 per cent.

While he offered no proof for his claim, he said his figures could be given to MPs in confidence.

THE STORY SO FAR

* The 228-page Health Practitioners Competence Assurance Bill includes provisions which would allow non-pharmacists to own up to 49 per cent of chemist businesses. The law restricts ownership to registered pharmacists.

* The Retailers Association and supermarket groups Foodstuffs and Progressive Enterprises are among those pushing for the ownership restrictions in the bill to be dropped entirely.

* The Pharmacy Guild opposes lowering the pharmacist ownership cap below 51 per cent, saying community pharmacists will be lured from small centres to more lucrative jobs with large operators.

* The health select committee is hearing submissions and is due to report back to Parliament by April 14, 2003.