HC Deb 24 February 1964 vol 690 cc30-2
33. Mr. Stratton Mills

asked the Minister of Health if he will give an assurance that he will commence negotiations with chemists about National Health Service remuneration for dispensing before resale price maintenance legislation takes effect; and if he will make a statement.

36. Mr. Oram

asked the Minister of Health if he is satisfied that the payments to pharmacists for dispensing medicines under the National Health Service are sufficient to cover their costs and a reasonable profit in respect of the services they provide in this connection; and if he will make a statement.

Mr. Barber

The final report on a recent inquiry into the expenses incurred by chemists in National Health Service dispensing has just been received and is being discussed with the Chemist Contractors' Committee. Any necessary adjustments in remuneration will be considered as soon as these discussions are complete.

Mr. Stratton Mills

Does my right hon. Friend accept the social necessity of having dispensing chemists widely distributed throughout the community? Will he give an undertaking that he accepts the principle of some review of dispensing remuneration as a result of the abolition of resale price maintenance?

Mr. Barber

I hope that in this country we shall always have a reasonable distribution of dispensing points. The aim has always been to fix the National Health Service remuneration for chemists, including the profit element, at such a level as to give a fair return for the service involved.

Mr. Oram

Can the Minister say whether there is any evidence in the Report to which he has referred in support of the assertion by chemists that in order that they may continue dispensing under the National Health Service they should be permitted to make excessive profits on other goods which they sell? Will he agree that if such a situation arises it should be the aim to make an adjustment in the payments made under the National Health Service rather than to allow excessive profits on other commodities?

Mr. Barber

I am seeing the Chemists Contractors Committee, or rather its representatives, at five o'clock this afternoon to consider this very Report. If the non-National Health Service business of chemists were reduced for any reason, there would probably be a small increase in the proportion of expenses allocated to National Health Service business which would ultimately affect National Health Service remuneration.

Sir K. Thompson

Is my right hon. Friend aware that there is no suggestion of excessive profits being made on other items—[HON. MEMBERS: "Oh."]—but that nevertheless there is a crisis developing in my own city as a result of pharmaceutical chemists being unable to maintain themselves on their present rate of earnings? Will he look carefully at this to see that the service is maintained?

Mr. Barber

I must not repeat myself unduly. I have already said that the aim is to fix the remuneration, including the profit element, at such a level as to give a fair return for the service involved.

Sir G. Nicholson

Will not my right hon. Friend agree that it would be highly undesirable that drugs and medicines and other medicaments should be sold by all and sundry without adequate control and that chemists and pharmacists are in a particular position with regard to resale price maintenance?

Mr. Barber

That has been put to me by pharmacists in another connection. It goes much wider than these questions which are concerned with remuneration.

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