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The Pharmaceutical Journal
Vol 271 No 7280 p831
20/27 December 2003

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Pharmaceutical Services Negotiating Committee (www.psnc.org.uk)


PSNC asks NE London contractors to pay levy direct

Pharmacy contractors in the North-East London Local Pharmaceutical Committee area are being asked to pay their levies direct to the Pharmaceutical Services Negotiating Committee if they want to continue to receive support services from it.

The PSNC and the LPC have been locked in a row over payment of the LPC levy for the past two years. The levy is collected by LPCs from Prescription Pricing Authority payments. It is based on dispensing volumes and supports PSNC work for contractors and in national negotiations.

The row has its roots in motions passed at the local pharmaceutical committees’ conference in 2001 (PJ, 17 March 2001, pp345–7) and subsequent criticism of the PSNC regarding progress on these at the LPCs’ conference in 2002 (PJ, 9 March 2002, p311). The motions related to developing a public health strategy for community pharmacy and schemes to support patients after discharge from hospital.

The PSNC said that it became aware in October 2002 that the LPC was linking withholding of its levy to these issues. It sent a solicitor’s letter in February 2003 demanding payment after hearing that LPCs in the London area were considering breaking away from the PSNC. The PSNC later withdrew the letter and PSNC executives met the LPC in September this year. Now the PSNC says that the LPC is trying to impose further preconditions on payment of its outstanding levies.

Barry Andrews, chairman of the PSNC, has written to contractors in north east London direct saying that it can no longer defend to other contractors continued provision of support to an LPC that is not making a financial contribution. He says the move is disappointing at a time when pharmacy needs to pull together to work on developing the new contract.

Sue Sharpe, chief executive of the PSNC, told The Journal that the issues raised by the LPC, particularly around public health, are being addressed as part of the new contract framework.

Alan Castell, vice-chairman of North East London LPC, confirmed that the LPC has been withholding its levy for some time “in dispute over the manner in which the PSNC has been discharging its duties to the contractors that we represent”. This was done because “democratic processes were not yielding progress”, he added.

He said that at no time had the LPC discussed or even considered divorcing itself from the PSNC. Its action was aimed entirely at pursuading the PSNC to pursue policies that it believed would promote the future security and professional development of contractors. He stressed that the dispute was with the PSNC as a body and not its executives.

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