CHAIN PHARMACIES

Manawatu Standard, Volume LVI, Issue 140, 15 May 1936, Page 16

CHAIN PHARMACIES

EVIDENCE TO COMMITTEE. CHEMISTS’ CASE. WELLINGTON, May 14. Further evidence in support of the case presented last week by the Pharmaceutical Society ot New Zealand against the system of chain pharmacies was given before the Industries and Commerce Committee of the House of Representatives yesterday. The chemist-* are asking tor legislation to protect them from Loots or any other lieavily-capitalised overseas company contemplating starting in the Dominion. Mr W. J. Jordan, chairman of the committee, presided. Douglas scott Dodds, pharmaceutical chemist of Christchureii, said that while on a trip abroad in 11)29 he studied chain store pharmacies in several i countries, lie was satisfied that chain pharmacy had nothing to commend it 1 rom the point of view of the profession and its employees. There was an apparent gain to the public in the low prices of lines tnat were “slaughtered” by the chain companies for advertisement purposes, but, to his mind, the gain was illusory on the whole. Hi- Dodds said he wished to repudiate the notion that chemists, generally speaking, were guilty of over-charg-ing He was prepared to admit that in the profession, as in any business not sufficiently regulated, there might be instances of over-charging, and said that was one of the reasons why he supported increased supervisory powers on the part of tne controlling body. “In the case of doctor’s patients in poor circumstances and where a' special price is necessary, also in the case of a mixture prescribed to be taken for a long period, the medical man marks the prescription ‘ci.P.’, which means special price. This minute is incorporated in every price list issued by tne Canterbury association. We de receive frequently from doctors prescriptions marked ‘P.P.’ or ‘S.P. - I' .p.’ means poor patient. 1 know of no chemist who does not loyally observe the compact.” 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 tne interests ol the proprieTora, management and wage-earn-ers 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 appreheinpon the possibility of the entry of higniy 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 lorce many chemists to sell their businesses at forced prices, or to go into bankruptcy, and the wholesaler would therefore lose the business from tins source as well as sustain heavy losses on account of bad debts.” CHEMISTS’ POSITION.

Statistical evidence relating to the business and industry of the wholesale druggists was given by Leslie H. Hesloj). lie said lio liad collected the information at the request of the parties concerned. Mr Hesiop said that on March b last a questionnaire was sent to all registered chemists. Of owner-chemists, 1 1 per cent had replied. The agugi ouping of 43/ 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 w r cre 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 lour. The average net income of ownerchemists was £0 a week, notwithstanding (1) long hours; (2) an average investment or capital of £1368; (3) investment in professional education (time and money); (4) necessity tor maintaining status in the community consistent with position held; (5) responsibility to the community and the medical profession in the handling of dangerous drugs. Mr Heslop said the questionnaire showed that 89 per cent or pharmacies were open for business up to 10 hours a day (the average being about 94hours), 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 41,000 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, land inability to pass on sales tax. Credit facilities extended by chemists averaged £1 a customer over 29,009 customers. MINISTER’S QUERIES.

The Minister of Industries and Commerce (Hon. D. G. Sullivan): . I he general tendency of your analysis is to show that the profession at the present moment is not an over-pro-sperous one? . Mr Heslop: That is so And the consequence is that tne chemists are not i na position to meet the competition. —That m correct. I suggest to you, with the object of ascertaining your opinion, a nrofession at the moment is over-stair ed an dover-capitfdised, andl that there are too many selling points?—That is a difficult question to answer briefly. My own impression is that in some cases there are definitely too many chemists for a given district, but it would he difficult to say the extent to which that has a hearing on the posiThe position would be intensified by

bringing in Boots throughout New Zealand Certainly.

Unless a number of chemists were climated by the competition ?—-Possibly to a much greater extent than by the normal expansion of the profession itself. CASE FOR FIRM. YESTERDAY’S EVIDENCE. Per Press Association. WELLINGTON, May 14. V ith the completion of evidence for the chemists, the Parliamentary Committee receiving evidence on chain pharmacies commenced to hear the other side of the case this afternoon. Mr Hogg, addressing the committee on behalf of the Friendly Society Dispensaries of New Zealand, said the dispensaries maintained that they played a very big part in the social services of the country, and any disruption of their organisation would result in the burden being thrown on the hosjiital hoards and other institutions. The dispensaries asked to be allowed to retain their existing rights. Speaking on behalf of the Wholesale Drug Trades Association of Great Britain, Mr Johnstone said his clients joined whole-heartedly with their customers in New Zealand in urging that, in the public interest and in the interests of what they deemed to he a useful and necessary profession, chain pharmacies should not be permitted in New Zealand.

Mr H. F. O’Leary, opening the cr.se for Boots, Ltd., submitted that if the prayer of the petitioners against Boots was reported on favourably and legislation was introduced, the result would be that New Zealand would be barring an organisation which would he an asset to the country. He detailed the romantic birth and phenomenal growth of the company, and the exceptional conditions under which its employees worked. He submitted that Loots, Ltd., were not a chain store in on© sense of the word; they were chemists. Their stock was no different from that carried by any well equipped chemist. Loots, Ltd., vended their prescriptions at moderate prices and allowed themselves a fair return only. There could be no mass production of prescriptions. “If you prevent Loots, Ltd., from carrying on business here, you will bring about an abandonment of the competitive principle and destroy the public advantage,” added Mr O’Leary. If no restrictions were placed on the firm’s activities it was proposed to open a factory in New Zealand within twelve months.

The committee adjourned until 10 a..m. on Wednesday next.