Parliament Workbench
Data: Official Report to 12 Nov 2026

Official Report · Committee

New Petitions

Co-location of General Medical Practices and Community Pharmacies (PE1492)

Tuesday 10 December 2013 Public Petitions Committee About 10:00–10:30 Petitions 56 contributions · 7 speakers

Speakers

Choose an MSP to read only their contributions

The record

56 contributions
David Stewart Lab The Convener · Highlands and Islands
link

The first item of business is consideration of two new petitions. As has been previously agreed, the committee will take evidence from each petitioner.

The first new petition today, PE1492 from Alan Kennedy, is on co-location of general medical practices and community pharmacies. Members have before them a note by the clerk, a Scottish Parliament information centre briefing and the petition. I welcome Mr Kennedy and Jean Kerr, who chairs the Cumbrae public reference group, to the meeting. I invite Mr Kennedy to make a short presentation to set out the context for the petition.

Alan Kennedy
link

I wish simply to make five main points for the committee to consider in conjunction with what you have already seen in the petition. First, I accept that, in November this year, the Cabinet Secretary for Health and Wellbeing agreed publicly, at last, that the current Scottish pharmacy application legislation is deeply flawed and will be revised. He has promised action soon. However, that process of review actually began in June 2013, following an MSP’s meeting with Michael Matheson, the Minister for Public Health, which identified serious problems with the legislation. We are still awaiting action, six months later.

Secondly, although the threat to Benbecula’s GP dispensing has been removed for now, two more practices are threatened with unwelcome applications—one in Drymen and one in Aberfoyle, and there may be a third one in Castletown. If a moratorium on further applications is not applied, other applications will follow; some 40 of 101 dispensing practices in Scotland are at risk. The problems and distress that those unwelcome applications are causing in communities and to staff should not be underestimated.

Thirdly, there is a belief in Government and the pharmaceutical industry that each and every existing pharmacist might be adversely affected by new start-ups. Thus, many pharmacists oppose new pharmacies even outwith their local area, whether they be independent or co-located with a medical practice. Government officials have admitted that the legislation is protecting pharmacists when application decisions are being made, regardless of community input. I have used freedom of information requests to determine dispensing income in every pharmacy in Scotland, and with input from an experienced dispensing practitioner, it is clear to me that rarely do such dangers exist. Some pharmacists will go to extraordinary lengths to protect their existing profit margins. Competition, as advocated by the Office of Fair Trading some years ago and rejected by the Scottish Government at that time could, I believe, save tens of millions of pounds in the Scottish national health service budget.

Fourthly, there is little evidence that those who are involved in negotiating and setting down the pharmacy legislation are prepared to take note of what patients in communities all over Scotland have been telling them for the past five years; namely, that patients demand a say on what they want locally, and having imposed upon them an unwanted pharmacy is definitely not part of that demand. Communities, including Whitlawburn, seek to have independent pharmacies; they should not be denied that choice by other pharmacists outwith the area.

Finally, at present, pharmacy legislation operates in a way that brings huge profits for a few and an impoverished health service for many people in the communities that are affected. It should not matter whether the dispensing and other services are provided by GPs, co-located GP surgeries and pharmacies, or independent pharmacies. Input that seeks to deny or restrain democratic choice must be rejected, whether it comes from Community Pharmacy Scotland or any other body that is associated with the NHS dispensing service to patients. It is time to change the legislation to support patient choice.

David Stewart Lab The Convener · Highlands and Islands
link

Thank you, Mr Kennedy—in particular, for keeping your remarks under five minutes.

I have a couple of questions to ask before opening up the discussion to other members. I ask Jean Kerr to let me know, please, if she wishes to raise any points.

I am glad that you mentioned that other areas in Scotland are being affected. I represent the Highlands and Islands and have been heavily involved in the situations in Benbecula and Caithness and have met Alex Neil to discuss the issue. Do you agree that the Wilson and Barber report was helpful and that, if its recommendations are accepted by Government, that will go a long way towards solving the problems?

Alan Kennedy
link

The Wilson and Barber report has been useful in that it has highlighted the problems. You will have noted that it calls for a moratorium. It is clear that reconsideration of the legislation is long overdue.

David Stewart Lab The Convener · Highlands and Islands
link

My final question is probably more applicable to rural areas than to urban areas. Do you share my view that it would be helpful to have a third way whereby there is co-existence of community pharmacies and dispensing GPs rather than the conflict that is set up when a new community pharmacy opens in a rural area and the GP then loses the dispensing pharmacy option?

Alan Kennedy
link

My reading of the situation from the information that comes in to me is that all GPs would welcome closer co-operation with pharmacies. What they do not welcome is the interruption to GP services that can be caused by a pharmacy coming into a dispensing area. That has to be looked at seriously.

Jean Kerr Cumbrae Public Reference Group
link

What has happened in Millport is probably extreme. It has happened mainly because we are an island community. As a result of a pharmacy being imposed on us despite the fact that, in the consultation, patients were very much against a pharmacy coming in, we have lost a first-class service by three doctors who did all the out-of-hours work and their own surgeries, and we are now being serviced by locum doctors 24/7. We have had three adverts out for a doctor’s practice. We had one applicant who was refused interview or consultation to see whether anything could be done. We now face having temporary salaried doctors and our out-of-hours work is going to be serviced by advanced nurse practitioners, who are being trained specifically to deal with an island situation.

We have gone from having a superb service to having a poor service where we do not know the doctors and we never know who is coming. Once the salaried doctors come, it is a known fact that those people will be temporary. We have an elderly population who are extremely distressed about all this, and there will be no continuity for them. The situation has divided our community considerably, because the older ones are feeling the problems while the younger ones are quite happy because they only have minor illnesses and they get their free bits and pieces from the pharmacy.

As Alan Kennedy said, all that we are asking for is to get our dispensary back so that the money that is generated from it can pay for the full amount of doctors that we need. The general anecdotal evidence that we are getting is that the people who showed an interest when the adverts went out withdrew because they felt that the practice was unviable, given what was expected.

David Stewart Lab The Convener · Highlands and Islands
link

I am sorry to cut across you, but our time is quite short, so I am keen to bring in my colleagues. I take it from your comments that the root cause of the situation is, in your view, the community pharmacy applications. Is that your argument?

Jean Kerr Cumbrae Public Reference Group
link

Yes. We asked that the dispensary remain open even though the pharmacy was coming in, but NHS Ayrshire and Arran refused that and closed the dispensary. We know that it has the authority to let the dispensary stay open, but it did not do that. As a result, we are unable to attract a GP practice that would be sustainable, safe and affordable.

Chic Brodie SNP South Scotland
link

Good morning. Clearly, my colleague Mr Carlaw will dwell on the Millport situation in detail. Drugs are a profitable business. Why would three doctors who are committed to customer service and to protecting their clients resign because of dispensing services being withdrawn?

10:15

Jean Kerr Cumbrae Public Reference Group
link

I cannot speak for the doctors, but I note that they were there for almost 30 years and had built up a superb practice for us. We have not had a pharmacy on the island for 40 years. The doctors chose to put a great deal of the money that was generated from the dispensary into paying for a third doctor and their out-of-hours cover.

Alan Kennedy
link

I add briefly that Millport is not alone in the doctors giving up. We have lost both our doctors in my community. Having started with a wooden shed, they ended up with two purpose-built surgeries, but now they can barely afford them.

Chic Brodie SNP South Scotland
link

Let me make it clear that I am very much in favour of as much activity as possible being generated in and by the community, but do you not think that there is potential for, or that there might be, a conflict of interests between the doctors issuing prescriptions and their having a dispensing service that is associated with them dispensing the drugs?

Alan Kennedy
link

I do not see why there should be a conflict, because the system has worked perfectly well for many years. Another myth that I should dispel is that pharmacies can provide services that dispensing doctors cannot provide. When we examine what happens in rural surgeries that are dispensing, we find that they mirror pharmacies in a certain way, and they are also cheaper. However, I am not here to defend dispensing doctors. I am here to point out that, when we look at the matter, more options are open than may at first appear.

Chic Brodie SNP South Scotland
link

I understand that. Thank you for that answer. I asked a question last year about relationships between GPs and pharmacists, be they remote or local. We are losing upwards of £30 million in repeat prescriptions. I am not sure that having dispensing services adjacent to or close by a local practice will eliminate that problem.

Alan Kennedy
link

Yes, but dispensing—

Alan Kennedy
link

If you look at the clawback from dispensing income to GPs and to pharmacists, GPs are actually less costly than pharmacists. There is about a 1.5 per cent difference in the costs to the NHS.

Chic Brodie SNP South Scotland
link

Okay. I have one last question on the NHS’s role in all of this. What do you think the necessary criteria are for opening a pharmacy? Are NHS boards in general applying the criteria when they receive applications and allow pharmacies to open?

Alan Kennedy
link

NHS boards would tell you that they are applying the letter of the law, but the legislation is weighted so heavily in favour of pharmacy applications that the needs, wishes and expectations of communities are not recognised. Boards have always argued that dispensing should not continue because the service is inadequate. To be frank, that is wrong and takes no account of what patients consider to be an adequate service.

Chic Brodie SNP South Scotland
link

The relationship between the customer and the doctor is a factor, particularly where it has existed for a long time. You made the point about profit margins, and I am sure that that comes into all relationships, whether they involve remote pharmacies or local dispensing pharmacies. We cannot sweep that under the carpet. I return to my earlier comment that drugs are a profitable business.

Alan Kennedy
link

The ideal solution is a co-located pharmacy and GP surgery, but that is not permitted.

Jackson Carlaw Con West Scotland
link

Good morning. As a West Scotland member, I am familiar with the situation on Cumbrae. I want to be helpful, but to qualify that with a particular point.

First, on the suggestion that island and rural GPs are squirrelling away huge profits, your point is that the profits that were made from the dispensing GP practice, particularly in Cumbrae, were reinvested by the practice in order to ensure that it could give the most comprehensive service to patients. Is that correct?

Jean Kerr Cumbrae Public Reference Group
link

That is correct.

Jackson Carlaw Con West Scotland
link

I think that we were at a stage where those GPs were set to retire, and they felt that because the change was imposed upon them they were no longer able to offer that service, so their retiral went ahead. The proof of the pudding has been the inability of the practice, or any practice, to recruit new GPs to it, because the GPs who consider it do not see it as an opportunity that they could properly take advantage of.

Jean Kerr Cumbrae Public Reference Group
link

That is correct.

Alan Kennedy
link

The Scottish NHS has never recognised that cross-subsidising from GP dispensing income to support other services is valid. Dispensing GPs are treated as contractors, which is quite different.

Jackson Carlaw Con West Scotland
link

The difficulty that we have generally is that both island and rural communities elsewhere in Scotland are also finding it difficult to recruit GPs to replace those who are coming up to the point of retirement, so a potential crisis is emerging in the provision of GP services.

I understand the argument in relation to islands in particular, where the loss of a GP service could mean that there is no out-of-hours cover on the island from a GP and where the population is probably elderly and not changing. However, there are communities that are growing, where the original rationale behind a GP dispensing practice was that it would serve a relatively small population base and where the wider population base creates the opportunity to have a sustainable community pharmacy. I am not sure that I share your dismissal of that prospect, Mr Kennedy, quite as much as you do. When it comes to sexual health testing kits and some other areas of healthcare, there is evidence that the anonymity of the dispensing practice as opposed to the GP, where the whole of a family might be involved, means that young people and others will access those things. When you dismiss the additional services as you do, I wonder whether that is entirely fair.

Alan Kennedy
link

Let me explain, taking the example of Leuchars and Balmullo. When Leuchars was granted a pharmacy, dispensing in Balmullo had to cease because the Leuchars pharmacist objected. We have exchanged a dispensing practice that was purpose built for dealing with dispensing problems, as you have described, and we now have a poky little pharmacy sharing premises with a post office, with difficult disabled access and very limited privacy. We have exchanged an excellent one-stop service for another service that is considered unsatisfactory, not by me but by the local community. I think that the case is unique in that I got five community councils in the area to agree that what we have is unsatisfactory. Usually they barely talk to one another, but they are agreed on that.

Jackson Carlaw Con West Scotland
link

That leads to the impression that we have a universal standard being applied everywhere without the appropriate level of discretion. The minister, Michael Matheson, wrote to Ayrshire and Arran NHS Board and other health boards indicating that he does not regard the provisions as demanding the closure of the GP dispensing practice in the event that a community pharmacy opens. Nonetheless, despite the circulation of that letter, Ayrshire and Arran NHS Board either felt that it had to proceed or disregarded the letter and went ahead with the closure.

Do you think that what is needed from the guidelines that the cabinet secretary is considering is not the swapping of one universal standard with another that says that under no circumstances should there be closures, but something that allows greater recognition of local views based on criteria that are, to some extent, capable of being independently assessed? I am aware that some GPs will lobby their patient base quite assiduously, and that may not be in their interests. However, judged against some independent criteria, that may allow the variable solution that would permit some cohabiting. Would that be a sensible solution?

Alan Kennedy
link

Yes. It would be sensible, especially where it can be publicly demonstrated that the community wants a service. In my case, the community is not particularly rooting for a dispensing service to be brought back, but it would like a pharmacy service and it cannot get one, despite being the largest village in Scotland.

Jean Kerr Cumbrae Public Reference Group
link

I do not entirely agree with Mr Carlaw. I apologise for that. During the past three and a half years, in which we have been fighting the closure, we have gone to great lengths to converse with NHS Ayrshire and Arran. When we and our local councillor met the chief executive and the chairman of the board on 25 November 2011, we asked them two simple questions. One was why the dispensary could not stay open as well as the pharmacy; we asked that question three years ago.

We emphasise that we are not anti-pharmacy but pro-dispensary. I have only recently gone back to live on the island, having been born there. The service that we were getting—and would like to get—is much more suitable for our community, which is where I agree with Jackson Carlaw. One service does not fit all, particularly in Scotland, where there are so many small and rural communities of people who are now having to travel.

Our pharmacy is in an unsuitable location as it is right beside a bus stop, there is no parking, especially in the summer, and there is a bicycle shop right beside it. The whole thing has not been considered properly—that was our argument with NHS Ayrshire and Arran. The only reason that the board gave us was that Mr Semple, who has the pharmacy, may choose to sue for breach of contract. We think that that is the reason why the board has definitely closed our dispensary, and we would like that to be taken into consideration.

Jackson Carlaw Con West Scotland
link

I do not know that Jean Kerr and I are in disagreement, at the end of the day. The point is that, for whatever reason, the minister’s letter was not seen by the health board as offering the comfort and security that it felt was needed to enable it to agree to the dispensing practice staying open. Therefore, although there was some hope that the practice might stay open, it did not. What is needed from the guidelines is something much more authoritative and clear.

Jim Eadie SNP Edinburgh Southern
link

I am sure that the petitioners have been clear in expressing their views this morning, but I am not sure that I have understood them correctly. Can I clarify what you mean, Mr Kennedy? Are you saying that the regulations contain a presumption in favour of all pharmacy applications or that the regulations are weighted in favour of existing pharmacies?

Alan Kennedy
link

I am saying that they are weighted against a pharmacy opening where other pharmacists oppose it. They have the privilege of defining the neighbourhood need with regard to such applications; it does not come from the community, whose view is not accepted.

Jim Eadie SNP Edinburgh Southern
link

That is clear and it helps to clarify matters. It certainly reflects my experience as an Edinburgh MSP. A pharmacy in my constituency closed and the local community would like it to be reopened, but the local NHS board has refused the application.

If I heard you correctly, Mr Kennedy, you said that competition, as advocated by the OFT, could save the NHS millions of pounds every year. Do you have an evidence base to substantiate that assertion?

10:30

Alan Kennedy
link

I have looked at the evidence that was provided to me recently by a dispensing GP, who is aware of the discounts that are being achieved. Currently, the Scottish Government works with pharmaceutical firms to establish what the base price should be. It then deducts a certain amount in reimbursement to pharmacists and GPs, knowing that they will get a small discount. The problem is that the amount of discount that pharmacists are getting is not clear. That needs much more exploration. There was an example in London recently in which a pharmacy was marking up particular medicines by 500 per cent as well as getting a discount. There was a court case about it.

The amount of discount that pharmacies—even small ones—are achieving is in the order of 20 per cent. A larger firm operating in Scotland, such as Boots, can get up to 50 per cent. I am not an accountant, but I would have thought that somebody in Scotland should be picking up on that issue and asking whether we are examining in detail what discounts are being achieved. I am certain that there is money to be earned by doing that. When we consider the overall cost of prescriptions over the past two years—from memory, it is about £2 billion—we can see that there must be savings in there.

Jim Eadie SNP Edinburgh Southern
link

How do you see a change in the regulations addressing that point?

Alan Kennedy
link

It almost has to be taken up as a separate matter. It is not something that the pharmaceutical directorate can consider.

Jim Eadie SNP Edinburgh Southern
link

I thought that that would be the case.

John Wilson SNP Central Scotland
link

I am concerned about the example of Millport, where a GP practice based its financial projections on a dispensing pharmacy being part of the practice. Given the issues around the security of finances coming into that practice, if it continued to dispense drugs, it would draw down a particular income. However, that income level could be subject to change and, clearly, it changed when another pharmacy opened close to hand. Are there GP practices in Scotland that exist only because they have a dispensing pharmacy as part of the surgery?

Alan Kennedy
link

Yes—there are 101 of them. Another example is Carstairs. It had a dispensing practice, and a pharmacy was allowed to open opposite. Two GPs left the practice because it was no longer viable. It was recently rescued from being closed thanks to an injection of £50,000 from—I think—South Lanarkshire Council to pay for repairs to the building and keep the place open. Without dispensing income, it would have gone.

John Wilson SNP Central Scotland
link

I think that Mr Kennedy has made the point that I was trying to get at, which is that some GPs—this is the case in 101 practices, according to him—are able to remain operational only because they have dispensing income. They rely on that income.

We heard that there were two GPs on Millport but that, through the income that was derived from the dispensing practice, they were able to employ a third GP. The issue is how many GPs a surgery would be able to have while remaining viable if it did not have that additional income. Should we be in a position where we have to rely on that income in order to maintain GP numbers?

Alan Kennedy
link

I repeat that, in Scotland, cross-subsidising from dispensing income is not recognised, whereas in England it is.

John Wilson SNP Central Scotland
link

I am concerned about situations in which we lose dispensing practices. A number of years ago, the Scottish Government decided to make prescriptions free of charge. If patients are now having to travel elsewhere to pick up their prescriptions, I would like to know the estimated average cost of those journeys.

Alan Kennedy
link

There is a cost in time, a cost in convenience and a cost in money. Since our dispensing practice closed, people in Balmullo have had to get on a bus or into a car. We now have a situation where we have a pharmacist who is the pharmacist of choice for the community—who would have started in the GP practice in combination—and who is delivering to the surgery. It is a compromise that is working and a lot of people are taking it up, but it is not a pharmacy service; it is simply a delivery service of pre-prepared prescriptions. It is one way round the current impasse, but it is not what our local community would like. It would like to see the pharmacist set up shop.

John Wilson SNP Central Scotland
link

That is one pharmacy that has decided to make that service available within the GP surgery. Do you have any examples of patients regularly being required to travel to have their prescriptions filled by a pharmacy outwith their area, which adds to the time and, in particular, the cost of prescriptions being fulfilled, as you indicated?

Alan Kennedy
link

Yes. In addition, you must remember that patients choose which pharmacist they want to supply them if they do not have one in their area. The patient should have the right of choice. In Millport, they would like the right of choice, but they are denied it. Because they choose not to use the island pharmacy, they have to travel to pick up dispensing products from a pharmacy on the mainland.

John Wilson SNP Central Scotland
link

But, Mr Kennedy, many patients throughout Scotland do not have the right of choice as regards the pharmacy services that are provided. They have to accept what is available locally or, as in the example that you gave, travel anything up to 2 miles or beyond to fill a prescription. In the Millport example, it is quite clear that patients make a choice—they decide to take a ferry to go and get their prescriptions filled.

Jean Kerr Cumbrae Public Reference Group
link

It is not purely a matter of choice because the pharmacy that has now opened is quite a considerable distance from the surgery, which is a particular issue for older people. The surgery has a lift, full disabled access and car parking. We have no public transport on the island, and when the ferry goes off, the ferry bus goes off. It costs our older people the minimum fare in a taxi to go and get their prescriptions collected and take them home.

David Stewart Lab The Convener · Highlands and Islands
link

I am sorry, but we are a bit short of time. Unless any other member has other points that have not been covered, we will move on. The procedure now is that the committee will look at the next steps. We are therefore finished with questions, but the petitioners can stay while we consider the way forward.

I think that committee members are aware that the system for approving these community pharmacies seems a bit strange and arcane. I cannot speak for the Government, but I am picking up that it wants to look again at that system. The powers to have a moratorium are also restricted, according to my discussions with ministers.

Members will be aware that the Government launched a consultation—on Thursday, I think—that runs until February. It would certainly be useful for the committee to write to the Cabinet Secretary for Health and Wellbeing and confirm whether the consultation that it is committed to will be open to all members of the public for them to submit their views. Jackson Carlaw made a point about a democracy where it is clear what the public wants but that preference is not reflected in successful outcomes as regards pharmacy applications.

Do members agree that we should continue the petition and seek the cabinet secretary’s views?

Chic Brodie SNP South Scotland
link

I understand that the Government has launched a consultation, but the scope is a bit narrow. While we should follow the strictures that the convener has set down, we need to consider the wider message. We have not talked about economies of scale; we have mentioned competition, but we have not really understood the implications of having a small community pharmacy that—as Mr Kennedy pointed out—might have margins of 20 per cent. We understand that others have margins of 50 per cent.

The issue comes back to the loss of customer service versus the profit margins that are exercised, which could be exercised by community pharmacies as well. If anything can be done to expunge any notion of a conflict of interest with regard to GPs, it should be done, as that issue is critical. They should stand aside from the instructions that are given in relation to NHS services. I agree that we should go ahead as the convener proposes, but there must be a much wider discussion on the provision of drugs, their costs and how they are purveyed and distributed.

Jackson Carlaw Con West Scotland
link

During my time in the Parliament, there have been only two members’ business debates—although possibly more than two debates in general—on community pharmacies and dispensing GPs, and they invariably related to situations in which a particular dispensing practice was at risk.

I note that the Health and Sport Committee raised the issue with the cabinet secretary on 12 November, and I have read his response in the Official Report. I support the convener’s suggestion, but perhaps we could, at the same time, at least liaise with the Health and Sport Committee with the option of reserving the possibility of inviting the cabinet secretary to come to this committee in due course. I do not want to duplicate any lines of inquiry that the other committee is pursuing, but we could perhaps maintain that option at present.

David Stewart Lab The Convener · Highlands and Islands
link

Most definitely. I will not lose sight of Chic Brodie’s points either, and if we send a general letter to the cabinet secretary we can certainly incorporate his wider comments on the issue.

I would also like the Government to confirm when it will make a decision on adopting the recommendations in the Wilson and Barber report. My view is that it would solve the problem if those recommendations were adopted. In fairness, I do not think that the Government is far away from making that decision.

Are members agreed on the general thrust of where we are going?

Members indicated agreement.

David Stewart Lab The Convener · Highlands and Islands
link

The petitioners have probably picked up that we are keen to pursue the petition. We will send it to the Government, and the cabinet secretary may come before the committee to give evidence in future.

I thank Alan Kennedy for submitting the petition to us and for coming along, and I also thank Jean Kerr. We will keep you up to date with developments.

10:42 Meeting suspended.

10:44 On resuming—

  1. 10:00 New Petitions Petitions · 1
  2. 10:00 New Petitions Petitions · 56
  3. 10:30 New Petitions Petitions · 82
  4. 11:30 Current Petitions Petitions · 20
  5. 11:30 Current Petitions Petitions · 12
  6. 11:30 Current Petitions Petitions · 3
  7. 11:30 Current Petitions Petitions · 4
  8. 11:45 Current Petitions Petitions · 4
  9. 11:45 Current Petitions Petitions · 4

The type of each item (debate, statement, questions, members’ business and so on) and the times shown are worked out by this site from headings, the chair’s opening words and the Official Report’s running timestamps. They are not the Parliament’s own classification. Text: the Scottish Parliament Official Report.