Regulations that restrict entry into the community pharmacy market in the Irish
Republic are being challenged by the Irish Consumers’ Association.
It believes that the regulations are protectionist, create monopolies and are
not in the best interests of consumers because they encourage the growth of
multiples and reduce customer choice.
There are currently 1,200 pharmacies in the republic. Under regulations introduced
four years ago, new outlets cannot be established within 250m of an existing
one in urban areas and within 5km in rural communities. A minimum population
of 2,500 is also required.
According to the Irish Pharmaceutical Union president (Ms Marie Hogan) the regulations
are necessary to ensure an even distribution of pharmacies and panels with external
members assess applications.
In a submission to the Irish health minister (Mr Michael Martin), the Irish
Consumers’ Association lists a number of areas where new pharmacies have
been refused, despite public demand.
The association claims that although the regulations are intended to curb the
proliferation of chains and to preserve pharmacy as a local service, the opposite
has happened. By protecting the market for existing players through limiting
new entrants, larger pharmacies have become more profitable, it says, making
the sector more attractive to the multiples.
“We are concerned about the large chains which are beginning to dominate
the sector,” says Mr Michael Kilcoyne (chairman, Irish Consumers’
Association). In particular, he is concerned about the growth of Boots and the
home-grown chain Unicare which has said it wants to own 150 pharmacies within
four years. He claims there is a case for anti-trust legislation to limit the
number of outlets any one company can control, warning that the next arrival
in the Irish market is likely to be the American giant, Media Mart.
The campaign for a review of the regulations has the backing of many pharmacists,
he insists.
“They have been contacting us to express their support, even though the
Pharmaceutical Union seems to think we are out to destroy them. The reality
is that these regulations are totally outdated in today’s Ireland. If they
remain in place, some 80 per cent of pharmacy graduates leaving our universities
will never own their own business. That can not be allowed to happen.”