Parliament Workbench
Data: Official Report to 12 Nov 2026

Official Report · Committee

New Petitions

Pharmacy (Control of Entry Regulations) (PE613 and PE614)

Tuesday 18 March 2003 Public Petitions Committee Petitions 69 contributions · 7 speakers

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The record

69 contributions
John McAllion Lab The Convener · Dundee East
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The next petition, PE613, is on the subject of the Office of Fair Trading's recommendations on the control of entry into pharmacy. In fact, there are two petitions—PE613 and PE614—on the same subject. The principal petitioner for PE613, Mr Andrew Hughes, is here to speak to the petition.

Andrew Hughes
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I thank the convener for allowing me the opportunity to address the committee in support of my petition. As a pharmacist with over 30 years' experience in community pharmacy and as the owner of two independent family pharmacies, I felt that I should petition the committee in response to the OFT's report "The control of entry and retail pharmacy services in the UK". I point out that I am not an official lobbyist from any group. We lodged a personal petition that was supported by our patients. I am just a concerned pharmacist, not part of the legal process.In 1987, the Government introduced control of entry regulations for pharmacies in the United Kingdom. That was to provide a rational distribution of pharmacies in rural and urban areas and to avoid the counterproductive clustering of a number of pharmacies around GPs' surgeries. At present, all applicants for entry to the pharmaceutical list have to convince health boards that the proposed pharmacy is necessary or desirable in order to secure adequate provision and distribution of pharmaceutical services in the neighbourhood.Over the past 15 years, that system has worked well. The stability has produced a confidence that has encouraged pharmacists to provide a range of additional services in conjunction with local health boards. We have invested in upgrading our premises, adding consultation areas, training staff and continuing to seek ways to improve our service to the community. In fact, in line with the Scottish Executive's vision in "The Right Medicine: A Strategy for Pharmaceutical Care in Scotland", those initiatives have included palliative care schemes, care for the elderly, methadone supervision, non-smoking advice, repeat prescription services, a delivery service to housebound patients, domiciliary oxygen supply and helping with residential homes. Many other services would follow with the support of local health boards.Those services rely on a close relationship between the pharmacist and his or her patients, which can be fostered best in local, community pharmacies, as we have at present. If deregulation comes about, as recommended in the OFT report, we will return to the free-for-all in which there was no stability in pharmacy provision. Most important, it is likely that supermarkets would open pharmacies on their premises. Small pharmacies that are situated in urban and rural communities and that serve young and old alike would become less viable and in many cases would close.If the Scottish Executive accepts the OFT recommendations, the improvements and advances in pharmacy provision that have taken place in Scotland over the past few years will be damaged irreparably. Pharmacists and their staff throughout Scotland have been amazed by the support that the public have given to local community pharmacies by signing petitions that reject the OFT proposals. In our pharmacies, over a 10-day period our petition received about 1,300 signatures. Since we submitted the petition, it has received a further 500 signatures.I have received support from my MSPs Annabel Goldie and Trish Godman, who has been particularly helpful. I ask members to consider my comments. I hope that they will support the many community pharmacies and patients in Scotland who are united in opposing the OFT recommendations.

John McAllion Lab The Convener · Dundee East
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Although there are only two petitions on this issue before the committee, we have received petitions from all over Scotland—especially from pharmacies—that support the line that is set out in PE613 and PE614.

Dr Winnie Ewing SNP Highlands and Islands
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I am totally opposed to supermarkets trying to pretend that they are the same as pharmacists. I would like to illustrate what I mean. As members probably know, my husband was ill in the last period of his life. I collected pills for him regularly. Because of the demands of my life, once or twice I was unable to get to a pharmacy before closing time and resorted to using a supermarket that is aiming to be a pharmacist. Eventually I found a way round that and stopped using supermarket pharmacies, but whenever I did I received only half of the prescription. That dodge was intended to make me return to the shop the next day. If it had happened only once, I would not have been suspicious, but it happened every time. That is not good for people who are harassed and worried about illness. I have always found that a pharmacist affects health and confidence, because people feel that he is a friend. A supermarket can never provide that support.I am totally opposed to what is being proposed. When a profession is working well and is respected, we should not fix it.

Andrew Hughes
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I endorse completely those comments. We have a good relationship with patients generally. I said that I was amazed by the support that we had received. Of 1,300 people, perhaps three said that they would not sign the petition. They may have said that because they do not sign petitions or because they work in supermarkets.I have not had this experience personally, but I know that many young pharmacists who work in supermarkets work shifts. Because there is no continuity in the pharmacist on duty, supermarket pharmacists do not have the same rapport with patients that other pharmacists have. I am sure that some very good pharmacists work in supermarkets, but I am told that the turnover of supermarket pharmacists is fairly quick.

Phil Gallie Con South of Scotland
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How important to pharmacists and patients is head-to-head contact between pharmacists and patients?

Andrew Hughes
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We have medication records for most of our patients. If a patient comes in to buy a Lemsip—which they can buy off a supermarket shelf, because it is an over-the-counter product—we have access to their records. If there is a decongestant in the Lemsip that interacts with tablets for high blood pressure, we can say, "Mrs Smith, you should not take that." Similarly, we can indicate that there is paracetamol in the Lemsip and ask the patient whether they are taking other products that contain paracetamol.If I had my way, medicines would be sold only in pharmacies. Unfortunately, their distribution is determined by manufacturers. Manufacturers apply for licences for general sales list medicines. We sell general sales list and pharmacy-only medicines. Pharmacy-only medicines can be sold only when a pharmacist is on duty or in a pharmacy.

Phil Gallie Con South of Scotland
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The geography of Scotland is such that many villages do not have supermarkets, although many people use them extensively. How many small pharmacies in rural communities would close if supermarkets were given blanket access under the OFT recommendations?

Andrew Hughes
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I could not say, but there is a scheme to support small pharmacies in rural areas. For example, if the supermarket were 10 miles away and some of the many people who travel by car start to use it, even in a small way, small urban and rural pharmacies become less viable. Once pharmacies lose their viability, can pharmacists afford to open for as long as they used to or afford to deliver prescriptions to housebound people? I have been in the profession for over 30 years and it is changing. It has changed in the past 15 years. In fact, those changes have become more rapid recently, and we are looking forward to them. My daughter is a pharmacist in our business and she is looking forward to becoming more involved with those changes.Returning to Mr Gallie's point about closure, the OFT said in its report that for every supermarket pharmacy that opens, it expects two pharmacies in the surrounding area to close. That defeats the idea of distribution and access to pharmacies.

Phil Gallie Con South of Scotland
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When you say that it completely cuts across that idea, would it not also totally undermine present moves in the NHS to encourage more contact between patients and pharmacists, rather than filling up doctors' surgeries?

Andrew Hughes
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Yes.

Dorothy-Grace Elder Ind Glasgow
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You are perhaps aware that in the 20 years up to 1990 approximately 50,000 small shops closed in Britain, some of which were pharmacies. I do not know whether a study has been done since. However, those closures were largely due to supermarkets virtually eating whole high streets. If you cast your mind back 10, 20 years or whatever, how much of your business do you reckon supermarkets have already consumed? We know that they sell masses of make-up, toiletries, toilet paper, and cleaning materials—you name it. How much of the easy stuff do you reckon has already been taken from your pharmaceutical business?

Andrew Hughes
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Supermarkets are easy. We all use supermarkets. We are all busy people in a hurry, so we will take our trolleys down the supermarket aisle and buy our toothpaste, shampoo or whatever. I could not quantify how much has been taken from my business. However, we pharmacists are a resilient lot. If something goes, we will replace it with something else. We have been going to the continent for years and have seen that pharmacies used to be much more professional than we were.

Dorothy-Grace Elder Ind Glasgow
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Pharmacists have lost a lot of the very easy trade, which the supermarkets take. You are left with the dispensing, which is the hard stuff.

Andrew Hughes
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That is right. However, 80 per cent of our turnover is NHS work. We cannot make it any easier because the Government checks discounts and claws back money if it thinks that pharmacies have made any extra money out of that work. Therefore 20 per cent of turnover is over the counter, and probably only 5 per cent of that is over-the-counter medicines. Therefore the OFT has looked at pharmacies as a whole, but it should be looking at the 5 per cent sales of over-the-counter medicine. It has said that those medicines will become cheaper if they are sold in supermarkets because of the competition. I suggest that the range of medicines that would be available in supermarkets would be much smaller than is currently in pharmacies. Supermarkets may well sell some goods at a discount, but they sell loss leaders in bread or toothpaste anyway. It is easy for larger organisations to cut prices to get the business. When the business is theirs, they do not have competition, and prices start to rise. To return to the price of medicines, there are proprietary medicines, such as Benylin products, but pharmacies have own-brand goods that are a fraction of a price of those over-the-counter proprietary medicines. If someone comes in to a pharmacy and asks for a high-priced branded paracetamol product, we will offer them a paracetamol product for 55p. We have been doing that for a long time, and will continue to do it, but we would hope for some support from you.

Dorothy-Grace Elder Ind Glasgow
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You will perhaps have heard about last week's meeting of the Health and Community Care Committee, at which the officials from the office of unfair trading—as I would call it in this instance—received a fair bruising from that committee's members. In fact, I would say that they needed some of your sticking plasters at the end of the day, because we were unanimously tough in response to what they are doing. The great mystery remains, however: the system wasn't broke, the public did not ask anybody to fix anything, so where on earth did the proposal originate?

Andrew Hughes
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I suggest that it came from large organisations that have lots of money to spend and have lots of professional people lobbying for them.

Andrew Hughes
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Yes.The town where I work has three pharmacies. We are all very friendly, although we are competitors—we are all individual businesses. We are members of the Royal Pharmaceutical Society of Great Britain. Many such pharmacies are also part of the National Pharmaceutical Association. We do not come together to lobby all the time, but there have been things that have—

Dorothy-Grace Elder Ind Glasgow
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So the proposal is the result of big business pressure on the Office of Fair Trading, and perhaps also on some politicians, in connection with supermarkets and one or two names—

Andrew Hughes
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I cannot possibly say that—

Phil Gallie Con South of Scotland
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Can I cut in at this point? The proposal probably stems from European regulation and from what is considered to be fair trading in the European context.

John McAllion Lab The Convener · Dundee East
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I remind members that we are questioning the witness. We all have our own political beliefs, and we can argue over the rationale behind the decisions that have been taken, but we are trying to help the petitioner and to ask questions. Do you have any other questions, Dorothy? We have a big agenda and we have already been here for two hours.

Helen Eadie Lab Dunfermline East
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You might have answered some of my questions in response to Dorothy-Grace Elder. I, too, have received many letters from pharmacies in my area. A number of villages in my constituency do not have a pharmacy and I am constantly trying to address that issue. Could you expand on the answer that you gave to Dorothy-Grace Elder about how you think the current agenda arose? You have suggested that it could be because of the actions of big business. Has it come about for other reasons? What does the OFT report say? I have not had a chance to read it yet. What is the rationale behind it?

Andrew Hughes
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As Dorothy-Grace Elder suggested, if it ain't broke, why try to fix it? I have no idea. I have not previously been involved in anything to do with the matter—

Andrew Hughes
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I have not read it in full, although I have read extracts.

Helen Eadie Lab Dunfermline East
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Is there in the document any rationale for the proposal?

Andrew Hughes
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I cannot see that there is in the document any rationale for the proposal, aside from the fact that someone somewhere, or some large supermarket groups somewhere—I could name them, although I do not suppose that that is important—have been building up a pharmacy profile. The entry qualification is simple at the moment; it need only be shown that the need or desire for a pharmacy exists. I have been on both sides of the issue in the past: I opened my business before the contract changed and I then bought a pharmacy at the going rate and paid for it over a long period of time.I recently applied to a health board for a contract in a place where I thought there was a need for a pharmacy. I went through the process of appearing before the health board's committee, which listened to my argument. I also listened to the questions that were asked of me and, as things turned out, that committee decided that there was no need for a pharmacy where I wanted one. I accepted that decision. I had the opportunity to appeal, but I thought that the point had been made. If there was no need for the pharmacy, there was no need for me to spend more time and effort on it.

Helen Eadie Lab Dunfermline East
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On that question, I used to be a member of a health board committee that issued permissions to pharmacists to set up pharmacies and I remember that one of the health board's criteria was the distance between pharmacies; the proximity of one pharmacy to another was often the deciding factor. If a Tesco's sits right next door to a Co-op, who would regulate which supermarket would get the right to prescribe? Would the health board regulate that?

Andrew Hughes
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If the OFT recommendations were implemented, a major supermarket could set up next door to me. I have been on site for 16 years—I have built up a lot of business in the area and I have loads of patients. If the proposal goes ahead, a supermarket could and probably would open a pharmacy and the chances are that my business would be halved overnight. I would like to think that that would not happen, but it could. A supermarket could quite easily wipe me out. I might eventually have to close. The patients that have come to me over the years would lose me as a pharmacist. I would not sell up and the supermarket and I would both have contracts, which would cost the health board more money because there would be two pharmacies where previously there had been only one.

Helen Eadie Lab Dunfermline East
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Would there be no role for the committees of NHS boards in awarding the rights to pharmacies?

Andrew Hughes
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It appears that there would not.

John McAllion Lab The Convener · Dundee East
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The OFT proposal would leave it purely to the market to decide where people could collect their pharmaceutical products.

Dr Winnie Ewing SNP Highlands and Islands
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I do not think that we can blame the EU for the problem. During my sojourn in France, Germany and Belgium—where I spent a lot of my time—there were no such things as pharmacies in supermarkets. After all, Andrew Hughes's profession is one that is recognised by the other chemists of all the other EU countries. That recognition took years to establish and it is in pharmacists' interest to protect it.

John McAllion Lab The Convener · Dundee East
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We are supposed to be questioning the witness. We will discuss the issue later, when we can come to your question. If there are no further questions to the petitioner, I thank Andrew Hughes for attending. We now move on to discussion of what action to take on the petition.The Office of Fair Trading's recommendations are merely that—recommendations. The UK Department of Trade and Industry is trying to co-ordinate responses to the recommendations from throughout the UK, but the decision rests with Scottish ministers. The Health and Community Care Committee has already taken up the issue and has had a meeting that was attended by the Deputy Minister for Health and Community Care. As Dorothy-Grace Elder said, that committee also questioned representatives of the Office of Fair Trading last week and will produce a report. The petitions have been shown to the clerks of the Health and Community Care Committee, so I suggest that the petitions be sent directly to that committee to help it finalise its response to the recommendations.

Helen Eadie Lab Dunfermline East
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Do I see the hand of the World Trade Organisation's general agreement on trade in services in this? GATS is about further liberalisation of services and, as we all know, the DTI currently has a consultation paper out on that. Can the committee write to the DTI to ask whether the OFT proposals are part of that wider liberalisation process for trade in services? The DTI should be asked to note the committee's reservations about any possible liberalisation of health services.I know that the minister announced recently that health services will not be offered up for liberalisation under GATS. I am delighted about that, although the newspapers here in Scotland have not reported it. However, the OFT recommendation could be a back-door way of trying to offer up some aspects of health services. The committee ought to feed into the DTI consultation paper our view that we are opposed to this kind of liberalisation, which would fundamentally affect health services.

John McAllion Lab The Convener · Dundee East
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I agree with that, but if we refer the petitions formally to the Health and Community Care Committee, they will become that committee's property. We could suggest to the Health and Community Care Committee that it should make such an approach to the DTI.

Helen Eadie Lab Dunfermline East
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Would that stop us from writing a letter to the DTI to make our views known?

John McAllion Lab The Convener · Dundee East
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Yes. We exist to ensure that petitions are given the correct and proper response; we do not have any policy responsibility in other areas. When we refer a petition formally, it is for the policy committee to which it is referred to pursue it. We will recommend to the Health and Community Care Committee that it should write to the DTI.

Helen Eadie Lab Dunfermline East
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The only problem is that, as you rightly point out, committees will not be able to deal with any business until June at the earliest. Given that it is unlikely that a committee will conduct a detailed investigation then, the deadline for the consultation on GATS, which is in the summer, will be past. We must be mindful of that if the Parliament is to offer input to that consultation.

John McAllion Lab The Convener · Dundee East
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The petition is not concerned directly with GATS, but with the Office of Fair Trading's recommendations to remove the control of entry regulations.

Helen Eadie Lab Dunfermline East
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Yes, but the consultation will have an impact.

John McAllion Lab The Convener · Dundee East
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I know that, but other committees in the Parliament are addressing those issues. We can refer the petitions to the Health and Community Care Committee, draw its attention to the consultation, and hope that it will address the matter in the future.

Helen Eadie Lab Dunfermline East
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But the Health and Community Care Committee will not be able to do that timeously.

John McAllion Lab The Convener · Dundee East
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The petition does not ask us to respond to the GATS consultation. You may want to respond to it—you can petition the Parliament on that.

Helen Eadie Lab Dunfermline East
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With respect, that misses the point. Chemists are an aspect of the health service and the DTI's consultation impacts on them. Surely, the committee has a responsibility at least to write to the DTI saying that there is an issue and that we are concerned that the Parliament's other committees will not be able to respond timeously to the consultation. Does that present a problem?

John McAllion Lab The Convener · Dundee East
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If we do that, we cannot refer the matter to the Health and Community Care Committee, which is dealing with the issue this afternoon and which will be returning to it in the near future. The petitions would be held up in this committee while we write about the GATS consultation, so they would not form part of the Health and Community Care Committee's consideration. I do not think that that is a good idea, although other members might.

Helen Eadie Lab Dunfermline East
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We have written such letters for information.

John McAllion Lab The Convener · Dundee East
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Such a letter would mean that we could not refer the petitions to the Health and Community Care Committee.

Helen Eadie Lab Dunfermline East
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In the past, we have referred petitions to the Health and Community Care Committee, but written for information in relation to concerns that we had. We did it a few moments ago when we referred a petition to another committee, but also to the Westminster committee that is dealing with the issue. The DTI is dealing with the issue, as is the Health and Community Care Committee.

John McAllion Lab The Convener · Dundee East
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Why should we write to the DTI if we have already officially referred the petitions to the Health and Community Care Committee, which is dealing with the matter?

Helen Eadie Lab Dunfermline East
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We should do so because of the time scale.

John McAllion Lab The Convener · Dundee East
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We do not have any further role in the matter.

Rhoda Grant Lab Highlands and Islands
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I have a helpful suggestion. Perhaps we could send a copy of the Official Report of the meeting to the DTI and draw its attention to Helen Eadie's comments. We should also refer the matter to the Health and Community Care Committee.

John McAllion Lab The Convener · Dundee East
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Yes. We can do that and draw the matter to the Health and Community Care Committee's attention. People must understand that the committee does not exist outwith dealing with petitions. We cannot take stances in relation to policy issues, which are a matter for the policy committees to which we refer the petitions. We can make recommendations, but we cannot run with issues, unless we get new powers in the new Parliament. I hope that we will get those powers in the near future, but we do not have them at the moment.

Helen Eadie Lab Dunfermline East
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Convener, you know me; I respect you all the time, but I am concerned about the timing. I respect wholly the committee's view and I would not normally be so persistent and tenacious but, because of the timing, there is a problem.

John McAllion Lab The Convener · Dundee East
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Do you accept Rhoda Grant's suggestion?

Dorothy-Grace Elder Ind Glasgow
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Helen Eadie has pinpointed future dangers. The Health and Community Care Committee has dealt exclusively with chemists but, as Helen said, the measure could be the first step in a back-door approach, which would be cause for concern. If we dive in now and get a response from the DTI, we might stop that.

John McAllion Lab The Convener · Dundee East
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An earlier petition from the World Development Movement was specifically about GATS and the opening up of health services to competition. That petition went to the Health and Community Care Committee, which dealt with it. The petitioners are now satisfied that the petition was successful because the DTI's and the UK Government's initial response was to back away from opening up health and education services to competition. The Government might come back again on that issue but, for the moment, it has backed off. The World Development Movement wrote to the Health and Community Care Committee to say that it was satisfied that there was no further need to pursue the matter because it was happy with the result of the first round of negotiations.

Phil Gallie Con South of Scotland
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If the Health and Community Care Committee gets the petition, it will deal with it now and in line with the consultation requirements.

John McAllion Lab The Convener · Dundee East
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The Health and Community Care Committee is considering a draft response this afternoon.

Phil Gallie Con South of Scotland
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Will it consider the petition with that draft response?

John McAllion Lab The Convener · Dundee East
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Members of that committee have copies of the petition, but we must refer it to them officially so that they can consider it. Is that agreed?Members indicated agreement.

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