Business has misunderstood the issues over the draft Liquor Bill and the industry has read the legislation wrongly, says South African Trade and Industry Minister Alec Erwin.
Speaking at a briefing ahead of his budget policy debate in the National Council of Provinces, the minister was asked about the draft Bill being returned by the National Assembly trade and industry portfolio committee to his department for a rework.
It was understood that his department had heard concerns from business about the three-tier system being introduced by the legislation — this discourages cross-cutting interests in the manufacture, distribution and retail sale of liquor products.
Discretion by the minister in allowing exceptions from this broad principle was seen by industry players as giving him too much power.
But Erwin said today that there was “no such thing… it is a carefully considered process”. But he promised that his director general would be engaging “with the industry again.. and come up with a well understood and mutually agreed to arrangement”.
Earlier, in public hearings, the Wholesale Merchant Forum of the Wine and Spirit Industry of South Africa told the committee that the Bill contained serious flaws that could impede investment and economic growth.
Aspects of the Bill giving wide powers to the trade and industry minister may indeed be unconstitutional, the forum argued.
The forum expressed concern that the Bill prohibited a manufacturer from selling liquor to a retailer except with the permission of the Trade and Industry minister “as a condition of registration”. – I-Net Bridge