High Court rules five of Countdown’s pharmacies are illegal

The court has ruled that the Ministry of Health’s decision to grant Countdown licences to operate pharmacies in five of its supermarkets was unlawful. Photo / Hayden Woodward

By RNZ

A group of pharmacists believes a High Court ruling over supermarket giant Countdown is a significant win for the community.

The court has ruled that the Ministry of Health’s decision to grant Countdown licences to operate pharmacies in five of its supermarkets was unlawful.

The Independent Community Pharmacy Group (ICPG), which represents 115 community pharmacists, argued the pharmacies - in Penrose, Grey Lynn, Wainuiomata, Gisborne and Richmond - were illegal as they were not majority-owned by pharmacists, nor “effectively controlled” by them, as required by law - and the court agreed.

ICPG spokesperson Clive Cannons told Morning Report the ruling was a “David and Goliath win” for the independent pharmacists.

The court had found the Countdown pharmacies were acting unlawfully and had invalid licences from the Ministry of Health, he said.

It had also directed the pharmacies’ licences be quashed, he added.

“The court has invited submissions from Countdown though, and deferred the quashing reliant on those submissions.”

Pharmacy ownership was a “complex thing”, Cannons said, but two things were required.

“Firstly, a licence from the Ministry of Health, where among other things, you have to demonstrate 51 per cent shareholding by a pharmacist, and that pharmacist - or group of pharmacists - has to have effective control of the pharmacy company.

“And the second thing that you require is a contract from your local Te Whatu Ora district, or what was your DHB.”

Cannons said the court had found that the pharmacists who are shareholders in Countdown [pharmacies] did not have effective control of the company, which made the licences illegal.

“I’m over the moon, it’s a David and Goliath win for us ... it’s wonderful.”

He told RNZ he was unsure what implications the ruling may have for Australian-owned discount pharmacy chains operating in New Zealand.

“We’re not sure ... that will come out when the Ministry of Health make their submissions to the court around the effective control ownership and ... the structure of the pharmacy companies.

However, he said: “The thing that I see is that we don’t want the health of New Zealanders in the hand of Australian corporates.”