Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Guild satisfied with Commerce Commission investigation

13 February 2014

Guild satisfied with outcome of Commerce Commission investigation

This morning the Commerce Commission publicly announced the outcome of the 2012 Community Pharmacy Services Agreement (PSA) investigation that began last year.

The Commission acknowledged that only the courts can decide whether there has been a breach of the Commerce Act, but did however warn the Guild for “aiding, abetting, counselling or procuring DHBs and/or its members to include “no discounting” provisions in the PSA which it considered to be anti-competitive.”

The investigation was launched due to a possible breach of the Commerce Act by clauses included in the PSA prohibiting the discounting of the prescription co-payment and offering inducements, specifically clauses H4.4 and M1.3.

Pharmaceuticals are subsidised by government funding. The prescription co-payment is the amount that patients pay towards their medicines. The maximum amount of the co-payment is set by the government.

The Guild is pleased that the Commerce Commission has noted the useful role it plays in negotiating agreements, advocating and consulting on behalf of its members.

The Guild takes its responsibility as a representative body seriously and will continue to be mindful of the prohibitions in the Act against price fixing and anti-competitive agreements and will be reminding its members of their obligations under the Commerce Act.

The Guild acted in good faith during PSA discussions and provided relevant information to DHBs to enable them to develop a fair service and funding model to support patients.

During the PSA consultation process the DHBs took responsibility to ensure the PSA complied with law including the Commerce Act, and the Guild relied on this legal advice.

Once the unintentional breach was identified in January last year, the DHBs immediately announced that they would not enforce the clauses. The Guild fully supported the DHBs’ decision and this change was formalised in the revised contract.

The Pharmacy Guild of New Zealand (Inc) is a national membership organisation representing community pharmacy owners. We provide leadership on all issues affecting the sector and we advocate for the business and professional interests of community pharmacy.

For additional information on the Guild and community pharmacy, please go to


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news