The Irish Pharmaceutical Union (IPU) is preparing for confrontation with the Minister for Health, Mr Martin, in protest against the abolition of anti-competitive regulations which were introduced by government in 1996. It is a knee-jerk reaction by an artificially-created cartel whose financial interests are now threatened. But if the Government is to protect the consumer and the future health of the economy, it must persevere with the deregulation of professional and other services.
Some weeks ago, on the advice of the Attorney General, Mr McDowell, the Minister for Health shocked the IPU by abruptly repealing pharmaceutical regulations. Legal action against the Government is contemplated. And the IPU has threatened to disrupt the work of the Medical Services Payments Board by reverting to paper-based, rather than electronic, returns for services provided under the Medical Card Scheme. Pharmacists will also refuse to deal with new methadone patients.
. The protected position accorded to pharmacists by the 1996 legislation - which dramatically and artificially increased the value of their businesses - was no more justified than that which favoured taxi-plate owners and still benefits licensed vintners. Last year, the Paris-based OECD advocated major regulatory reform of pubs and pharmacies, as a means of bringing down prices and making the economy more competitive. At the same time, the Consumers' Association and the Irish Competition Authority sought changes in legislation.
Under the regulations, people who wanted to set up a new pharmacy had to convince the chief executive of a health board of the need for the service. The application could be rejected if it was believed the viability of an existing pharmacy might be endangered, even if that pharmacy was in an adjoining town.
The Consumers Association of Ireland argued that the law had effectively created a cartel for those who owned pharmacies in 1996. The IPU claimed the change has given Ireland the most unregulated pharmacy sector in Europe and now threatens the viability of outlets in smaller towns. It is unlikely, however, that a rash of uneconomic new premises will open across the State. What will happen is that the artificially created value of pharmacies will come down, and new outlets will open where there is an obvious need. Such competition will be good for consumers.