HC Deb 06 March 1979 vol 963 cc606-7W
37. Miss Fookes

asked the Secretary of State for Social Services for how long the current negotiations between his Department and the Pharmaceutical Services Negotiating Committee have been going on; and when he expects a settlement to be reached.

Mr. Ennals

The Pharmaceutical Services Negotiating Committee submitted a claim for an increase in the rate of return on capital employed on 8 March 1976. The committee and I have recently agreed to refer the claim to an independent panel with the following terms of reference:— To consider the general criteria which should determine the profit payable to chemist contractors for the provision of Part II Pharmaceutical Services under the National Health Service Act 1977 and in particular consider:

  1. i. whether the rate of return on capital employed in NHS dispensing is appropriate, and if not suggest what it should be;
  2. ii. whether the profit should be determined on some basis other than capital employed;
and to make recommendations. We hope that the panel will be able to present its report within three months of appointment.

A number of other more recent claims by the committee are at various stages of negotiation.