Clause 32 - Applications for provision of pharmaceutical services
Health Bill
4:15 pm
Steve Webb (Shadow Secretary of State for Health, Health; Northavon, Liberal Democrat)
I have a couple of questions for the Minister. In line 42 there is a reference to two or more applications to provide pharmaceutical services in the same neighbourhood. Would the Minister clarify what is meant by “neighbourhood” in that context? Is it a town, a county or a PCT area? What is the scope of the clause?
I hinted at my other question during my earlier intervention. All of us would want the character of community pharmacies to be maintained. Individual pharmacies have a role, as do big chains, and where applications are made by two pharmacies, or where an application is made by a new one in the same neighbourhood as an existing one, what criteria would the Government use for determining which should be allowed to operate? Do they just wish to encourage entry and competition?
I am worried that if it is a matter of full-blooded, full-throated competition, there is a danger that community pharmacies and the services they provide, which bring something distinctive to our neighbourhoods, might be driven out of business by the chains. They can cross-subsidise, and drive out smaller pharmacies that are not able to do that, to the long-term detriment of variety, quality and customer service. Would the Minister put on record the criteria that the Department require to be used locally in deciding between competing applications in a neighbourhood? It would be helpful if she could do that and clarify what constitutes a neighbourhood.