Chemist trade faces major overhaul

A RADICAL shake-up of the pharmacy industry, allowing chemists trained abroad to open up businesses here, will be recommended to Health Minister Micheál Martin later this week.

The report by the Pharmacy Review Group also recommends the number of stores operated by multi-national companies be limited to stop them monopolising the market.

The report says multinationals should get just 8% of the dispensing contracts given out by health boards to operate the General Medical Scheme and Drug Refund Scheme contracts.

“Pharmacies cannot survive without these contracts so this would be an effective way of limiting the spread of multinational chemist shops,” said a member of the review group.

Mr Martin ordered the major review 14 months ago to ensure better quality and value for money for consumers.

He would not comment on the proposed reforms last night. “The minister cannot comment in advance of receiving the Pharmacy Review Group’s recommendations and he will have to get Cabinet approval for major changes,” his spokeswoman said.

But Mr Martin has already moved to liberalise the industry by revoking regulations restricting the opening of new pharmacies in January 2002.

The regulations had prohibited the opening of new pharmacies within 10 miles of an existing chemist shop and in areas that did not have a set population density. This restriction was sharply criticised by the Competition Authority, which claimed it helped to keep prices high.

The Competition Authority also called for the lifting of the ban on foreign-trained chemists opening businesses here. A large percentage of Irish chemists train abroad because there are limited places here for them.

The Irish Pharmaceutical Union (IPU) is opposed to the liberalisation of the market. The IPU claims opening up the industry would lead to multinational companies dominating the business here.

An IPU spokesperson was not available for comment last night.

The Pharmacy Review Group is recommending that foreign-trained pharmacists not be allowed open a business here for at least a year after the legislation is passed to allow certain safeguards be put in place.

“All pharmacists who trained or worked abroad would have to produce a fitness-to-practice certificate to ensure the highest standards are maintained,” the review group member said.