CHAIN CHEMISTS

Otago Daily Times, Issue 22903, 10 June 1936, Page 10

CHAIN CHEMISTS

LIMITATION FOR SIX MONTHS OVERHAUL OF EXISTING SYSTEM NATIONAL SERVICE SUGGESTED (From Our Paruamextart 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 on petitions from a large number of chemists against the operation of pharmacy chain stores. The report was presented in the House to-day by the chairman of the committee, Dir W. J. Jordan (Government, Mauukau). Mr Jordan said the committee found that the mass production and manufacturing facilities of Boots, The Chemists (N.Z.), Ltd., enabled them to sell at loM'er prices than independent chemists. The evidence tended to prove that there was a considerable discrepancy between the prices charged by Boots and those of private chemists and that the latter prices Mere to a considerable extent an unnecessarily heavy burden owing to the overhead costs consequent 'on the large number of dispensing establishments in operation. The committee was of the opinion that an adequate service could he provided by a smaller number of dispensing establishments. The committee held that steps should be taken to ensure that the community generally would be able to procure pharmaceutical services at the lowest price compatible with quality and reasonable payment for all necessary work in connection with the service. The recommendations of the committee were listed by Mr Jordan as follows:

That the organisation of chemists’ services be regulated by licence under the control of the Minister of Industries and Commerce.

That the operation of large-scale pharmacy companies in New Zealand be not extended for a period of six months in order 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 adequate payment for the services rendered.

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 licences may be issued to such companies and persons ns may be determined by the Minister of Industries and Commerce.

That all chemists, if employing assistants, should be required to employ a specified proportion of qualified assistants.

That the Government should invest! gate the possibility of the establishment of a national pharmacy service.

Speaking to the report. Mr Jordan said that ag a result of the searching investigation carried out it had been shown that the 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 wore paid in many cases, and the business had been shown to be to a great measure in a precarious position. “ The committee inquired thoroughly into the affairs of Boots, The Chemists (N.Z.), Ltd.,” continued 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 admitted by the committee that improvements must be made in the profession, and that is why the committee decided to recommend that the profession should bn 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 a satisfactory service to the people. “ The committee rea’iaes that this is a most important matter,” continued 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 operation 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 of Industries and Commerce (Mr D. G. Sullivan), who was present throughout the proceedings before the committee.”