CHAIN PHARMACIES

Dominion, Volume 29, Issue 194, 14 May 1936, Page 6

CHAIN PHARMACIES

Parliamentary Inquiry Continued CHEMISTS’ EVIDENCE Views of Wholesale and Retail Trade further evidence In support of the case presented last week by the Pharmaceutical Society of New Zealand against the system of chain pharmacies was given before the Industries and Commerce Committee of the House of Representatives yesterday. The chemists are asking for legislation to protect them from Boots of any other heavily-capitalised overseas company contemplating starting in the Dominion. Mr. W. J. Jordan, chairman of the committee, presided. Douglas Scott Dodds, pharmaceutical chemist of Christchurch, said that while on a trip abroad in 1929 he studied chain store pharmacies in several countries. He was satisfied that chain pharmacy had nothing to commend it from the point of view of the profession and its employees. There was an apparent gain to the public in the low prices of lines that were “slaughtered” by the chain companies for advertisement purposes, but, to his mind, the gain was illusory on the whole. Mr. Dodds said he wished to repudiate the notion that chemists, generally speaking, were guilty of over-charging.

1 He was prepared to admit that in the | profession, as in any business not sulli- | ciently regulated, there might be in- | stances of over-charging, and said that | was one of the reasons why he sup- | ported increased supervisory powers on | the part of the controlling body. | The flat rate was, as far as he could | gather, the long-established way of | making charges, in British countries, I and had been from very early times. I “I understand,” said Mr. Dodds, “that I under the profiteering legislation in war time our flat-rate system was submitted to and approved by the Board of Trade, This is a matter doubtless on which the officers of the department can correct me if my information is not correct. I know, at any rate, that the basic rate has been kept in force I with only minor alterations, notwith- ! standing the increases in the rate of I exchange and the imposition of the i sales tax. “In the case of doctor’s jiatients in poor- circumstances and where a spe- ' cial price is necessary, also in the case of a mixture prescribed to be taken for a long period, the medical man marks the prescription ‘S.P.’, which means special price. This minute is incorporated in every price list issued by the Canterbury association. We do receive frequently from doctors prescriptions marked ‘P.P.’ or ‘S.P.’ ‘P.P.’ means poor patient. I know of no chemist who does not loyally observe the compact.” Mr. Dodds said he understood that similar arrangements obtained in other 1 parts of the country. In addition the Dunedin branch ever since the war had made a practice in the case of dispensing and supplies for returned soldiers, of reducing the bill by 10 per cent., apart from adopting in some cases, the “S.P.” or “P.P.”

The Wholesale Trade. Roland Arthur Cometti, Wellington, chairman of the executive committee of the Wholesale Druggists’ Association of New Zealand, said that his organisation regarded the inquiry as being vital to the interests of the proprietors, management and wage-earners engaged in the wholesale trade. Any great dislocation of the business of the retail pharmacists would react disastrously on the business of the wholesale druggists. “For that reason,” said Mr. Cometti, “we view with grave apprehension the possibility of the entry of highly capitalised overseas companies into New Zealand establishing chain pharmacies. We share the view of the retail pharmacists that such an entry of chain pharmacy into New Zealand would force many chemists to sell their businesses al forced prices, or to go into bankruptcy, and the wholesaler would therefore lose the business from this source as well as sustain heavy losses ou account of bad debts.” Statistical evidence relating to the business and industry of the wholesale •druggists was given by Leslie 11. Heslop. He said he had collected the information at the request of the parties concerned. Results of Questionnaire. Mr.;Heslop said that on March 6 last a questionnaire was sent to all registered chemists. Of owner-chemists, 71 per cent, had replied. The age-group-ing of 437 chemists indicated comparative absence of adaptability to other avenues of\ employment. Over 70 per cent, were married men. Those 'supporting children supported an average of two children each. Nineteen per .cent, were returned soldiers. A total of 482 employees of owner-chemists received very fair wage treatment, notwithstanding comparatively poor return to business owners. The position regarding employment was not improving under present conditions. The average number of persons dependent upon members of staffs of pharmacies who reported was four. The average net income of ownerchemiste was £G a week, notwithstand-

ing (1) long hours; (2) an average investment of capital of £1388; (3) investment in professional education (time and.money) ; (4) necessity for maintaining status in the community consistent, with position held; (5) responsibility to the community and tne medical profession in the handling of dangerous drugs. Mr. Heslop said the questionnaire showed that 89 per cent, of pharmacies were open for business up to 10 hours a day (the average being about 91 hours), the remaining 11 per cent, were open for periods up to 15 hours. Night-bell facilities were available at 23 per cent, of pharmacies. Thirty-two per cent, served friendly societies at reduced rates covering a membership of more than 18,000 persons, upon whom approximately 11,000 persons were dependent. This was exclusive of friendly societies’ own dispensaries. The chemists had maintained their service to the public notwithstanding severe competition from grocery, drapery and chain department stores, and inabilitv to pass on sales tax. Credit facilities extended by chemists averaged £1 a. customer over 29,509 customers. Too Many Shops” The Minister of Industries and Commerce, Hon. D. G. Sullivan: The general tendency of your analysis Is to show that the profession at the present moment Is not an over-prosperous one? Mr. lieslop: That is so. And the consequence is that the chemists are not in a position to meet the competition?—’’That is correct.” “I suggest to you, with the object of ascertaining your opinion, that the profession at the moment is over-staffed and over-capitalised, and that there are too many selling points?—“That Is a

difficult question to answer briefly. My own impression is tiuit in some cases there are definitely too many chemists for a given district, but it would ne difficult to say the extent fo which that has a bearing on the position." Mr. Heslop added that the genet al impression gained from the questionnaire was that chemists were In a better position in Christchurch than in Wellington, whore there' were 3.2 chemists to 10,900 population. The Minister: The position would be intensified by bringing jn Boots throughout New Zealand? Mr. lieslop: Certainly. The Minister: Unless a number of chemists were eliminated by the competition?—“Possibly to a much greater extent than by the normal expansion of the profession itself.” The committee adjourned until 10 a.m. to-day.