A report by the New Economics Foundation has warned that government plans to increase competition in the pharmacy market could "trigger the slow death" of traditional high street chemists.

A spokesman for the Department of Health told ePolitix.com: "We intend to publish a consultation paper setting out our proposals in more detail by the end of August on which the government welcomes views."

Forum Response: The National Pharmaceutical Association

Judy Viitanen, head of public relations at the National Pharmaceutical Association, told ePolitix.com: "The pivotal question is, are these 'balanced package' of measures proposed by the government in response to the Office of Fair Trading report into pharmacy entry controls going to be conducive to us going forward - or are they going to take us backwards?

"Our concern is that they could, effectively, represent deregulation by the back door - and result in unforeseen, unintended negative consequences.

"Our fear is that many of the existing safeguards could be removed, threatening precisely those neighbourhood pharmacies that patients value so much. Government urgently needs to address the profession's concerns - and we are currently trying to get clarification over the ambiguities contained in the government's response, including the definition of shopping developments greater than 15,000 square metres and whether PCTs will have the powers to decide on the impact of the proposed exemptions on existing pharmacy services.

"Until we receive answers to these questions, we remain concerned that what has been proposed could turn a system that works well - for patients, pharmacists and the NHS - into one that doesn't. On a worst case scenario, the compromise proposed by government could lead to a framework for phased deregulation.

"Our position has always been that the OFT report was 'a solution looking for a problem'. Given the indisputable importance of community pharmacy services to local communities - and in particular to the deprived and marginalised, and the need for pharmacies to invest in services on the back of the new pharmacy contract and their enhanced role perceived in the government's recent document 'A Vision for Pharmacy In the New NHS', that opinion is even more salient. Now is clearly not the time to play fast and loose with the system."

Forum Response: Consumers' Association

Frances Blunden, principal policy adviser at the Consumers' Association told ePolitix.com: "The New Economics Foundation's briefing suggesting that the government could be about to cause the demise of the community pharmacy, due to the changes in the licensing rules, is both alarmist and naive.

"As they stand the new arrangements will only apply in the very largest supermarkets and only in very limited circumstances. Or in circumstances where the local body responsible for the health care needs of the area (the Primary Care Trust) decides that they will promote consumer choice.

"The idea that supermarkets should be excluded from the pharmacy market to protect existing local pharmacies is counter to the needs of the many consumers, including those on low incomes, older people and those with disabilities, who use supermarkets on a regular basis.

"The fact is that the Department of Trade and Industry's amendments to the Office of Fair Trading's recommendations are purely cosmetic and do very little to actually bring beneficial changes to the problem of pharmacy access.

"The opening of supermarkets containing pharmacies has already gone some way to easing the difficulties with public access and improving services for consumers. It is now for the Department of Health to consider carefully positive measures to improve pharmacy provision in those areas that currently do not have good access to pharmacy services."