The State's competition watchdog has launched a full investigation into the withdrawal of pharmacists from the methadone dispensing scheme.
The Competition Authority advised pharmacists last Friday they may be in breach of legislation through their collective withdrawal from the scheme.
Around 140 pharmacists withdrew on Monday, when a dispute with the Health Service Executive (HSE) came to a head over a plan to reduce margins on drugs dispensed to medical card holders from December.
Taoiseach Bertie Ahern today said the Attorney General agreed with the HSE's refusal to negotiate with pharmacists on grounds that it would contravene the Competition Act 2002. Collaboration to effect prices is oulawed under teh Act.
The HSE argued that negotiating with the pharmacists would amount to treating them as a cartel but Labour Party leader Eamon Gilmore questioned the claim saying the executive negotiates rates with GPs and dentists.
Section 4 of the Competition Act say agreements or "concerted practices" which can lead to "the prevention, restriction or distortion of competition are prohibited".
In their letter last week, the Authority advised pharmacists that they may wish to take legal advice as it has begun an inquiry. Today it announced a full-scale investigation had been launched.
If the pharmacists are found to be in breach of the legislation they could be subject to criminal prosecution. The legislation also says "any person aggrieved" by breach of the Act can bring a civil action for damages.
Meanwhile, the Pharmaceutical Society of Ireland (PSI) today advised pharmacists who have withdrawn from the scheme that they have a legal duty of care to methadone users registered with them.
The PSI is the regulator in the pharmacy sector and registrar Dr Ambrose McLoughlin stressed the society no role in contract negotiations or collective bargaining.
The HSE has warned that some patients could return to heroin with a serious risk of overdose.
"So far, it has been brought to our attention that there have been difficulties ensuring alternative sources of methadone are in place.
"We would remind pharmacists and pharmacy owners that they have a duty of care to patients and that if there are delays or complications in alternative sources of methadone being put in place, in the interim they have a duty of care to fulfil to patients," Dr McLoughlin said.