Local chemists would have been at risk under deregulation
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The future of local pharmacies in Northern Ireland has been assured for the foreseeable future.
Minister for Health Des Browne has rejected deregulation proposals which were put forward by the Office of Fair Trading (OFT) in January.
Current rules limit licences for pharmacies to those that will provide a "necessary or desirable" service in a given local area.
The OFT report recommended scrapping rules restricting the number and location of chemists.
It said the relaxation, which could allow supermarkets to open many more in-store chemists, would lead to greater competition and lower prices for consumers.
Lobby groups believed such moves could have spelled the end for community pharmacies in Northern Ireland.
"Not realistic"
Mr Browne said on Thursday he had concluded that "simple and complete deregulation, as set out in the OFT report, is not a realistic option and is not, therefore, the way forward for Northern Ireland".
He said he had "no fundamental opposition" to deregulation, but the report had not explored other alternatives for encouraging competition, quality and value.
He said he was "disappointed" that the report contained hardly any specific information and analysis in relation to Northern Ireland.
The minister said he could not allow a removal of local services which could be to the detriment of the infirm, the elderly and the less well-off.
He said a community pharmacy strategy currently being developed would consider how chemists could "best respond to the interests and needs of patients and consumers in Northern Ireland, particularly in terms of quality and best value".
Consumer interest issues are a reserved matter for the British Government, but issues of health are the responsibility of the devolved government.