§ Earl Russellasked Her Majesty's Government:
Whether, in considering the Office of Fair Trading report on the location of pharmacies, they will accept that the presence of a neighbourhood pharmacy has an importance, especially to the elderly and the disabled, which cannot be adequately measured in market terms. [HL2545]
§ Lord McIntosh of HaringeyAs the Government made clear on 26 March, we are taking into account wider policy objectives in responding to the OFT report.
The OFT report argues for abolition of entry controls on the grounds that there would be consequent benefits for consumers in terms of reduced prices, improved quality of services and better access. The Government strongly support these objectives. We want to improve access and choice (including improving out-of-hours access for NHS patients) so that more NHS patients can use the skills of community pharmacists, who are trained clinicians, for advice, information and services.
The OFT report also noted that in a more competitive environment problems could arise through the possible effect of deregulation on the ability of patients in some areas to access high quality pharmacy services, and that these problems could be addressed through targeted measures. It was not in the OFT's remit to examine how mechanisms such as the Essential Small Pharmacies Scheme could be developed to address a more competitive environment, and we therefore propose to examine these issues further before reaching a final decision on a balanced package which most effectively promotes competition, new entry and increased choice alongside our wider social and health objectives.
We therefore favour change to open up the market and improve quality and access without diminishing the crucial role that pharmacies play, especially in poorer and rural areas. The Government intend to come forward with proposals before the Summer Recess and will publish a progress report at the end of June. All changes will then be the subject of a full consultation.