The Department of Health wrote to the HSE last Monday stating that the Irish Pharmaceutical Union (IPU) had raised concerns about pharmacies in medical centres. It reminded the HSE of the finding of the Pharmacy Review Group that there should be no beneficial ownership or business interest of any kind between prescribing and dispensing, and that contracted pharmacies and GP surgeries should occupy discrete premises with separate entrances.

"In order to ensure that any commercial links between a contractor and a health centre would not affect the integrity and probity of the operation of a contracted pharmacy within a health centre, the department wishes to advise that the HSE should satisfy itself, in assessing contract applications, that any commercial relationship between a pharmacy contractor and a health centre will not affect the provision of services under the contract, " the letter said, adding that it should also ensure the terms of the contract "dealing with ownership and beneficial interest are met".

PD junior health minister Tim O'Malley this month said the government had accepted the recommendation of the review group that there should be no beneficial business interests between dispensing and prescribing.

However, a spokesman for Harney denied there was a problem with the Tanaiste's opening of a medical centre last Friday week. He said there was no law that prohibited the primary care sector from renting premises to a pharmacy.

The only issue was that one can't have an equity or a beneficial interest in a pharmacy and primary care centre. This was not the case in any of the medical centres the Tanaiste had opened, he stressed.

But IPU secretary general Seamus Feely said allowing pharmacies into medical centres "runs the risk of compromising the relationship between dispensing and prescribing". He said the doctors in a centre would have a very strong interest in ensuring the success of the pharmacy.