I propose to take Questions Nos. 35 and 68 together.
Following legal advice from the Office of the Attorney General, I revoked the Health (Community Pharmacy Contractor Agreement) Regulations, 1996 (S.I. No. 152 of 1996), which set out criteria and procedures to be used by the chief executive officer of a health board when determining applications for granting community pharmacy contracts. The effect of the revocation, for the awarding of new community pharmacy contracts, is that there are no restrictions on granting new contracts in terms of location, population or viability of existing pharmacies. The revocation does not affect the operation of the community pharmacy scheme and existing contracts still stand. All existing contract applications and appeals lapsed with the regulations. Those affected should contact the health board directly concerning re-applying.
The opening of new pharmacies continues to be governed by the Pharmacy Acts, subject to restrictions imposed by non-pharmacy legislation, such as the Planning Act. The pharmacy review group, established by my Department to examine the pharmacy issues raised in the OECD report on regulatory reform in Ireland, is now being asked to report as quickly as possible, given the new situation. The type of framework, whether statutory or otherwise, required for community pharmacy services will be considered when the group reports. I am considering a number of options pending the completion of the work of the group. I have already met representatives of the Irish Pharmaceutical Union to discuss their concerns following the revocation of S.I. No. 152 of 1996. A further meeting will take place shortly.
As Minister for Health and Children, my responsibilities centre on the provision of a high quality health service and this includes ensuring, in so far as possible, that adequate and accessible pharmacy services are generally available. The decision to sell a pharmacy is a matter for the proprietor concerned. However, I am aware of a recent transaction which was brought to the attention of my colleague, the Tánaiste and Minster for Enterprise, Trade and Employment, Deputy Harney, who subsequently referred it to the Competition Authority. I understand the authority has recently recommended that the sale should proceed.
The overall increase in community pharmacy contracts under the 1996 regulations was approximately 50. Of these, about half are outside urban areas. However, applications for rural areas were also refused by health boards under the population, distance and viability restrictions of the 1996 regulations. Therefore, the effects of the 1996 regulations are not clear. The pharmacy review group will be studying the extent to which the 1996 regulations achieved the objective of a wider geographic spread of pharmacy services. An assessment of the effects of revocation of S.I. No. 152 on geographic spread, without data on the achievement of this objective under S.I. No. 152, would be merely speculative.
