§ Mr. Spriggsasked the Secretary of State for Social Services which bodies have communicated with him about his proposed retrospective financial cuts affecting NHS contractor chemists; and how much the proposal is intended to save.
§ Mr. EnnalsI have received representations from the Pharmaceutical Services Negotiating Committee, the Pharmaceutical Society of Great Britain and the Union of Shop, Distributive and Allied Workers about current levels of remuneration for retail pharmacists in respect of NHS dispensing services. I have not proposed any cut in their professional fees or "on-cost" for the purpose of saving expenditure.
An independent stockholding inquiry in 1975 showed that the average amount of capital invested in drugs was less than had previously been assumed. This had the effect of reducing the "amounts due" in the pharmacists' "balance-sheet", since under their system of remuneration their profit margin consists of a 16 per cent. return on capital employed. As a result, their expectation of an increase in fees has not been realised and this is one of the matters I am currently discussing with the Pharmaceutical Services Negotiating Committee.