Dear Mr Murphy

Thank you for your letter of 4 July 2011 regarding a petition recently submitted for the consideration of the Standing Committee on Petitions requesting the facilitation of an additional licence to dispense medicine in Glen Gala Shopping Centre Sunshine West, Victoria, to improve accessibility, competition, affordability and choice for the members of the communities of Glen Gala, Sunshine West, Ardeer, Derrimut and The Avenues Estate.

I would like to take this opportunity to explain the approval process for new pharmacies under the Pharmacy Location Rules (the Rules). For a pharmacist to be approved to supply Pharmaceutical Benefits Scheme (PBS) medicines at particular pharmacy premises, he or she must make an application to the Secretary of my Department (delegated to an officer in Medicare Australia). Applications are considered by the Australian Community Pharmacy Authority (the Authority) against the requirements specified in the Rules.

The Rules are intended to promote community access to PBS medicines by ensuring that a viable and appropriately located pharmacy network is in place. They do this through location based criteria that encourage an appropriate geographical spread of pharmacies, whilst ensuring that pharmacies do not become too closely clustered together, which could lead to some pharmacies having insufficient volume of work to allow efficient and viable operation.

The Authority considers applications against the relevant criteria in the Rules and is unable to consider other issues outside the Rules. If the Authority finds that an application satisfies the requirements of the Rules, it must recommend that the application be approved. The Authority cannot recommend approval if the requirements of the Rules are not met.

Unless an application is lodged for consideration by the Authority, it is not possible to determine whether or not that application would be successful.

In situations where the Secretary's delegate has rejected an application and the applicant believes there are exceptional circumstances that may result in a community being left without reasonable access to PBS medicines, an applicant can request that I exercise my discretionary power under the National Health Act 1953 to approve the pharmacist to supply PBS medicines. Such a request must be made within 30 days of receipt of advice that an application has been rejected.

I can only exercise my powers if I am satisfied that:

I trust that the above information is of assistance.

from the Minister for Health and Ageing, Ms Roxon