Continued delays in reforming the pharmacy market entry system could affect ongoing contract negotiations, PSNC has warned.

The Department of Health (DH) anounced its decision to delay the reforms and consider market entry alongside the cost of service inquiry (COSI) in April.

But the move could enable yet more pharmacies to open under 100-hour exemptions in the meantime, which would affect the contract negotiations and create instability in the sector, the committee warned.

"The massive increase in pharmacies could affect the result of the cost of service inquiry as well as creating instability and lack of confidence in the pharmacy network," the committee said in its annual report. 

PSNC chairman Chris Hodges also warned that the partial deregulation of the market in 2005 (when the 100-hour exemption was introduced) was knocking contractors' confidence.

"Talking to pharmacy contractors, I hear of the adverse impact this has on their confidence about the future, even as the government voices its support for the expanded role," he said.

PSNC had "made representations" to the Department of Health (DH) about its decision to delay the plans to introduce a new market entry system based on pharmaceutical needs assessments, it said. "It is one of the key issues for negotiation with the DH and we seek to address this," a spokesperson said.

Dr Hodges also warned in the annual report that progress on expanding the role of pharmacists was "frustratingly slow". Negotiations over the cost of service inquiry "will also no doubt be lengthy and complex", he added.

And the report revealed that PSNC staff and property costs had gone up over the past year. PSNC spent £1.22 million on wages and salaries last year compared with £1.07 million in 2010.

Rent, rates and other property costs went up a quarter over the past year from £127,524 to £170,575. This was due to relocation of its prescription audit centre from Cockfosters to Enfield, which had also affected staff costs, the spokesperson explained to C+D.

"Each year we seek to have the right staff and a mix but there were some fluctuations due to changes to location and the impact on individual staff," he said.