Mr. Darragh O'Loughlin:

I will respond to some of the questions Deputy Fitzpatrick asked. He alluded to a published recommended retail price list of some sort. That kind of retail price maintenance is illegal in Ireland under competition law, so although the Irish Pharmacy Union represents 1,700-odd community pharmacies, we do not gather or transmit any data around private pricing. Every one of those transactions must occur separately. Pharmacists are legally obliged to make up their own minds about what they charge. From an economic perspective as opposed to a professional one, we have one of the least regulated pharmacy markets in Europe, as has been acknowledged by the European Commission in its publications. Pharmacies in every locale and market are competing with each other. Competition is not just about price; it is about the quality of service, advice and location, and the convenience and service one provides to one's customers and patients.

Senator Colm Burke asked about the margins in the Irish pharmacy sector and how they compare with those in other countries. Our research shows that in the past five years since the financial crisis took hold, the average turnover in an Irish pharmacy has dropped quite considerably. This means that the margins in pharmacy are also dropping very considerably. In percentage terms, our margins would be roughly the same as those in the UK. Our turnover is falling to approximately UK levels or lower because the market is so competitive. We have an overall market that is shrinking in value, but more and more pharmacists who graduate from college are establishing their own businesses and competing for ever smaller slices of a shrinking pie. This is borne out by ESRI and CSO data. The overall value of the pharmacy is shrinking even as the number of prescriptions is increasing.