LICENSING OF PHARMACIES

Press, Volume LXXII, Issue 21805, 10 June 1936, Page 12

LICENSING OF PHARMACIES

RECOMMENDATIONS OF

COMMITTEE

“SIX MONTHS TO PUT

HOUSE IN ORDER”

PETITION ABOUT CHAIN

STORES

(From Our Parliamentary Reporter.]

WELLINGTON, June 9,

The licensing of chemists’ shops in New Zealand is advocated in the report of the Industries and Commerce Committee of the House of Representatives, which considered petitions from a large number of chemists against the operation of pharmacy chain stores. The report was presented in the House today by the chairman of the committee, Mr W. J. Jordan (Govt., Manukau). Mr Jordan said the committee found that the mass-production and manufacturing facilities of Boots, The Chemists (New Zealand), Limited, enabled them to sell at lower prices than independent chemists. The evidence tended to prove that there was considerable discrepancy between the prices charged by Boots and those of private chemists, and that the latter prices were, to a considerable extent, an unnecessarily heavy burden, because of the overhead-costs, consequent on the large number of dispensing establishments in operation. The committee was of the opinion that an adequate service could be provided by a smaller number of dispensing establishments. The committee held that steps should be taken to ensure that the community generally should be able to procure pharmaceutical service at the. lowest price, compatible with quality and reasonable payment for all necessary work connected with the service. The Recommendations The recommendations of the committee were listed by Mr Jordan as follows: That the organisation of chemists services be regulated by license, under the control of the Minister for Industries and Commerce. That the operation of large-scale pharmacy companies in New Zealand be not extended for a period of six months, to enable the existing chemists collectively to organise and plan their operations with the object of reducing the present scale of prices to the consumer, while at the same time providing an adequate payment for services.

That on the expiry of the specified period, the position be reviewed by the Government, and should it be proved that the existing chemists have not organised so as to adjust prices satisfactorily, licenses may be issued to such companies and persons as may be determined by the Minister for Industries and Commerce.

That all chemists, if employing assistants, should be required to employ a specified proportion of qualified assistants. That the Government should investigate the possibility of establishing a national pharmacy service. Variation in Prices Speaking to the report Mr Jordan stated thqt as a result of the searching investigations it had been shown that prices charged for similar prescriptions varied considerably, not only among several chemists, but by one chemist from time to time. There was a considerable amount of unemployment in the profession. Low wages were paid in many cases, and the business had been shown to be, to a great measure, in a precarious position.

“'The committee enquired thoroughly into the affairs of Boots, The Chemists (New Zealand), Limited,” said Mr Jordan. “The company, which is backed by British capital, is recognised to be a good firm. It is a good employer and it is efficient and enterprising. The committee examined witnesses from Britain, Australia, and from several parts of New Zealand. It was admitetd by the committee that improvements must be made in the profession, and that is why the committee decided to recommend that the profession should be given six months to put its house in order to the satisfaction of the Government. If that is not done, we recommend that the Minister should have power to ensure satisfactory service to the people. “The committee realises that this is a most important matter,” said Mr Jordan, “and that the ill-health of the people is the concern of the State. It is not a matter to speculate in, or from which to make an undue profit. It is realised that it is probably more important even than education, and the committee looks to the Government for a competent health-insurance scheme which would include the operations of the pharmaceutical services of this country. In laying this report on the table, to be referred to the Government for consideration, the committee feels that it will continue to have the close attention of the Minister for Industries and Commerce (the Hon. D. G. Sullivan), who was present throughout the proceedings before the committee.”

COMMENT IN THE HOUSE

SOME CRITICISM FROM OPPOSITION

GOVERNMENT TO CONSIDER

REPORT

iTrom Our Parliamentary Reporter.]

WELLINGTON, June 9.

The recommendation by the Industries and Commerce Committee of the House of Representatives that chemists’ shops should be licensed was contested by several Opposition speakers when the committee’s report was under discussion in the House to-day. The report was welcomed by Mr T. H. McCombs (Govt., Lyttelton), who said that the charges made by private chemists were altogether too high. He mentioned a prescription for a mixture containing 6d worth of aspirin and 9d worth of hydrogen peroxide, for which a chemist wanted to charge 7s 6d, including the bottle and label. Mr S. G. Holland (Nat., Christchurch North) paid a tribute to the way in which Mr W. J. Jordan had conducted the committee enquiry, and said that from some of the evidence offered private chemists had received a valuable lesson in how to run pharmacy stores. As a member of the committee, Mr Holland did not support the recommendation for the establishment of national pharmacy services Mr R. A. Wright (Ind., Wellington Suburbs) said it was only reasonable to protect local people from the operations of wealthy overseas combines; but he did not favour the proposal to license chemists. It was an ingenious

suggestion to introduce another form of socialism. Mr McCombs: Hear, hear. The Prime Minister (the Rt. Hon. M. J. Savage) said all sorts of businesses were licensed at present, and had been licensed for years. In the pharmacy business there was something that needed regulation. “We have no intention of socialising the pharmacy business in New Zealand,” he added. “We want to protect the chemists, and at the same time we want to protect the people. The business must be organised and put on a proper basis.” Mr A. S. Richards (Govt., Roskill) said regulation of cut-throat competition was urgently needed, especially when that competition was uneconomic.

Mr H. S. S. Kyle (Nat.„Riccarton) said private chemists were giving a good service, and they would be very disappointed when they read the findings of the committee. “The Pharmaceutical Society should be well pleased with the committee’s report,” said Mr W. T. Anderton (Govt., Eden). “The recommendations will give protection to the chemists.” The recommendation for establishing a national pharmacy service was regarded as a most important feature of the report by Mr C. L. Hunter (Govt., Manawatu). Such a service would be a necessary part of any national health scheme. After Mr Jordan had replied briefly to the debate, the report was referred to the Government four consideration.