Dáil Éireann díospóireacht -
Tuesday, 3 Jul 2001

Vol. 540 No. 1

Written Answers. - Pharmacy Sector.

Conor Lenihan

Ceist:

132 Mr. C. Lenihan asked the Tánaiste and Minister for Enterprise, Trade and Employment the terms of reference for the Competition Authority's examination of the pharmacy business; the timeframe within which the authority is expected to report; the timeframe within which recommendations from the authority might be expected to be implemented; and if she will make a statement on the matter. [19666/01]

Conor Lenihan

Ceist:

133 Mr. C. Lenihan asked the Tánaiste and Minister for Enterprise, Trade and Employment if the Competition Authority's examination of the pharmacy business has due regard to the important social support role played by pharmacies in local communities and in particular for the elderly; and if she will make a statement on the matter. [19668/01]

Conor Lenihan

Ceist:

134 Mr. C. Lenihan asked the Tánaiste and Minister for Enterprise, Trade and Employment if the Competition Authority's examination of the pharmacy business has due regard to the potential implications for local communities of consolidation of pharmacy outlets and the consequent damage this would cause to the local provision of important retail services and social infrastructure; and if she will make a statement on the matter. [19669/01]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I propose to take Questions Nos. 132 to 134, inclusive, together.

While the Competition Authority has made comments about regulation in the pharmacy sector and many other sectors, it has not proposed to examine the pharmacy business. However, the Deputy may be aware of the recent announcement by the Competition Authority of a consultation process for a study of competition in a number of professions under the competition Acts and the fact that it has sought views and comment on the intended scope of the study. The authority has stated that it intends to study a range of restrictions, such as barriers to entry, restraints on behaviour, and bans on advertising or seeking new business that are common across several professions and that are supported within a statutory or regulatory framework. The restrictions on competition will be the primary focus and the authority has yet to decide on the terms of reference and the sectors for inclusion in the study.

As regards consolidation of pharmaceutical outlets, any proposed merger or acquisition where the parties concerned exceed the financial thresholds specified in the Mergers and Takeovers (Control) Acts, 1978 to 1996, must be notified to me in advance for regulatory clearance. These financial thresholds relate to turnover of at least IR£20 million, or gross assets of at least IR£10 million. Where I receive a notification under merger law, I can refer it to the Competition Authority for investigation before deciding whether to either clear it, conditionally or unconditionally, or prohibit it in the common good.