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The Pharmaceutical Journal
Vol 270 No 7242 p423
29 March 2003

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Scotland and Wales reject OFT report and Westminster seeks compromise

Both the Scottish Executive and Welsh Assembly this week rejected outright the Office of Fair Trading recommendation on deregulation of community pharmacy. The decisions were announced on 26 March.

In Scotland, Deputy Health Minister Frank McAveety said: "After careful consideration of the OFT report, the results of the public consultation and the view of the Scottish Parliament, Scottish Executive ministers have concluded that deregulation is not the way forward for Scotland.

"The OFT report suggests that deregulation would benefit consumers, but consumers are also patients. At the forefront of my mind has been the possible impact deregulation would have on patients in Scotland's remote and rural communities and deprived urban areas. These patients rely heavily on ready access to local community pharmacy and medical support services and that service must be maintained," he said. "We believe the OFT report would run the significant risk of at least reducing and, at worst, removing services in some areas. We are not prepared to take that risk."

Although consumer interest issues are a reserved matter for the Westminster Parliament, health is a devolved issue. Therefore it will be for the devolved administrations to decide what action should be taken regarding deregulation.

Frank Owens, chairman of the Scottish Pharmaceutical General Council, responded: "I am delighted that the Scottish Executive has rejected the OFT recommendation. With the threat of deregulation no longer hanging over pharmacy, I hope that pharmacists will have the confidence to invest in services and premises development to ensure patients continue to receive first class pharmacy services."

David Thomson, chairman of the Royal Pharmaceutical Society in Scotland, commented: "The Deputy Minister's decision is welcomed and must give considerable reassurance to pharmacists and the patients they serve. By bringing this period of considerable concern and uncertainty to an end, pharmacy services can now be planned with confidence to meet the challenges and opportunities of 'The right medicine'. Hopefully we can now look to the future with renewed optimism."

Meanwhile in Wales, the Health Minister Jane Hutt announced that the Welsh Assembly Government will not accept the OFT recommendation. "I think that some important questions have been raised as to the robustness of the evidence on which the OFT recommendation is based. There is a view that the report has made its recommendation with consideration only to the competition aspect without examining the impact on NHS services," she said.

The minister expressed similar concerns to those voiced in Scotland over rural communities. "I am also anxious that the removal of these regulations could increase costs to the NHS in Wales resulting from the administration of alternative systems to protect access to pharmaceutical services under the NHS." However, Ms Hutt added: "I know, from my discussion with the profession, that no one claims that everything within the present arrangements is completely perfect. There are areas where improvements should be made."

Westminster The Government looks set to reject the Office of Fair Trading's recommendation to abolish the regulation of community pharmacies.

On 26 March, the Government said that it will publish a response to the OFT report by the end of the summer. It added that it needs to take into account wider policy objectives in its response.

The announcement follows a House of Commons answer on 20 March, in which Patricia Hewitt, the Secretary of State for Trade and Industry, indicated that a compromise package is being devised. Although it is now unlikely that control of entry will be completely abolished, some changes to the regulations are expected.

In a statement on 26 March, Ms Hewitt said: "We favour change to open up the market and improve quality and access without diminishing the crucial role that pharmacies play, especially in poorer and rural areas."

Comment, p422, News Feature, p431

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