The Pharmaceutical Journal
Vol 270 No 7234 p139
1 February 2003

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Health Secretary prepared to over-rule OFT proposal

The Secretary of State for Health (Alan Milburn) has signalled that proposals from the Office of Fair Trading to abolish controls over National Health Service dispensing contracts will be over-ruled if there is sufficient hostility from stakeholders (our Lobby correspondent writes).

Compelling evidence that might be collected during the current 90-day consultation period that benefits will not be passed on in full to patients and consumers will be enough to ditch the inquiry, according to Whitehall sources.

Sources also confirm that Patricia Hewitt, Secretary of State for Trade and Industry, will not risk a Cabinet battle with Mr Milburn if the consultation process fails to reassure him that wider Government plans to improve pharmacy services, including an extension of one-stop health shops, will not be undermined.

Stakeholders whose views ministers consider to be paramount include pharmacists, dispensing doctors, the NHS and patients themselves.

Mr Milburn is understood to be deeply unimpressed that only some supermarkets, but not all, have cut prices by up to 30 per cent since resale price maintenance was brought to an end for medicines nearly two years ago.

One source said: "These will all be factors for consideration. The OFT delivered a strong case, but the final decision is not a foregone conclusion."

The Department of Trade and Industry is ready to prepare regulatory changes but, even if these are introduced, there would have to be further consultation on draft proposals in an already overcrowded Parliamentary timetable.

Responsibility for the contract control regulations in Wales, Scotland and Northern Ireland is devolved, but ministers expect the final outcome to be agreed by all parts of the United Kingdom.