HC Deb 03 December 1998 vol 321 cc1033-4
7. Mr. Tim Loughton (East Worthing and Shoreham)

What discussions he has held with the Community Pharmacy Action Group in relation to resale price maintenance. [161298]

The Minister of State, Department of Trade and Industry (Mr. Ian McCartney)

None. However, during the passage through Parliament of the Competition Act 1998, my right hon. Friend the then Secretary of State and my hon. Friend the Member for Edinburgh, South (Mr. Griffiths) met representatives from the Community Pharmacy Action Group to discuss resale price maintenance in that legislation.

Mr. Loughton

Does the Minister think that he knows better than the Community Pharmacy Action Group, which has warned that at least 3,000 community pharmacies could close because of changes to resale price maintenance in the Competition Act—a view that was echoed by 150 Labour Members in early-day motion 643? What comfort can he offer community pharmacists in my constituency, particularly in Worthing and Southwick, who offer vital services—such as 24-hour opening, emergency cover and free delivery, particularly to pensioners—but who now face going out of business?

Mr. McCartney

The hon. Gentleman is talking arrant nonsense. During the passage of the Competition Bill, the hon. Member for South Cambridgeshire (Mr. Lansley) admitted that the action group had accepted the way in which the Government were carrying out the proposals and had dropped its objections. The Director General of Fair Trading has applied to the restrictive trade practices court for leave to have the continuation of resale price maintenance reviewed. If the court concludes that resale price maintenance for over-the-counter medicines continues to be in the public interest, it will benefit from a five-year exclusion from the prohibition of anti-competitive agreements in the Competition Act 1998. The Government are committed to community pharmacies. That is why my right hon. Friend the Secretary of State for Health increased resources to that sector in his recent review.

Mr. Peter L. Pike (Burnley)

If competition from superstores puts local chemists out of business, will not the elderly and the poor lose most?

Mr. McCartney

The Government are more committed than anyone to community pharmacy services. The hon. Member for Tunbridge Wells (Mr. Norman)—the vice-chairman of the Conservative party—is taking a legal action on the issue. That is typical of the Conservatives. They are in favour of big business and do not defend small business.

Mr. Andrew Lansley (South Cambridgeshire)

Given the Government's rhetoric during the passage of the Competition Bill about the importance of community pharmacies, will the Minister undertake that the Government will give evidence to the restrictive trade practices court during the forthcoming hearings on the importance of community pharmacies in maintaining a service on competition grounds, and will put forward the health evidence and the primary care benefits of community pharmacies?

Mr. McCartney

The hon. Gentleman knows that the issue is before the court. The Government have no power to say anything because the issue is sub judice.