4(1)In this Schedule—E+W
“designated” means designated in writing by the Secretary of State (and different designations may be made for different purposes),
“drugs” includes medicines and listed appliances (within the meaning given by section 126),
“pharmaceutical services” does not include additional pharmaceutical services,
“remuneration referable to the cost of drugs” includes (except in paragraph 1(2)(b) and subject to sub-paragraph (2)) remuneration payable to persons providing local pharmaceutical services.
(2)The Secretary of State must determine what remuneration paid by Primary Care Trusts to persons providing pharmaceutical services or local pharmaceutical services must be treated for the purposes of this Schedule as remuneration referable to the cost of drugs.
(3)The Secretary of State may treat all remuneration paid by Primary Care Trusts to such persons, so far as it is met by an NHS trust or an NHS foundation trust under section 234(4), as remuneration referable to the cost of drugs for those purposes.