The liquor industry gave the revised Liquor Bill a tentative thumbs-up on Wednesday, but lauded the Department of Trade and Industry (DTI) for extensive consultation on the controversial measure.
SAB director Vincent Maphai, on behalf of the industry, said in a statement the new draft showed government and producers were willing to be ”pragmatic and flexible”, although the final draft was not ultimately what the industry wanted.
”We trust DTI to meet the commitments made to industry.
”This pertains most importantly to the fact that the Bill will not affect the efficiencies of our industry’s operations, nor its growth and sustainability.
”This, we believe, will ultimately be of benefit both to the South African economy as well as consumers.
However, he said, the measure still contained clauses that did not belong in liquor legislation.
These included sections referring to issues of competition and economic empowerment, which would have been more appropriate in legislation dealing with those matters.
”Overlaps in legislation are best avoided,” Maphai said.
The department presented its latest draft of the Bill to Parliament’s trade and industry portfolio committee on Wednesday.
It includes key changes to the initial version that have helped to allay fears of a costly shake-up in the South African liquor industry.
Significantly, the measure no longer outlaws cross-ownership between the manufacturing, distribution and retail functions.
However, applicants will have to meet certain criteria set by the minister, such as commitments to combat alcohol abuse and for black economic empowerment, and the extent to which the licence registration will restrict competition.
SAB has argued, in the past, that a three-tier structure could have led to costs to consumers of between R250-million and R550-million, excluding infrastructure costs of about R600-million.
”We are pleased that DTI has shown a clear understanding of our concerns about the application of a three-tier system,” Maphai said.
The licensing of retailers, the most important sector of the industry, required urgent attention.
”Importantly, true economic transformation within the liquor industry will ultimately be achieved through the licensing of retailers, 90% of whom are currently unlicensed.”
It was estimated there were about 180 000 shebeens in the country, and licensing of these illegal outlets would result in one million formal jobs, improving South Africa’s employment figures by about 15%, he said.
The retailing sector is not covered by the Bill, as this falls under the jurisdiction of provincial government.
Maphai said he doubted whether the passing of the national Liquor Bill would meet its stated objective of reducing alcohol abuse.
The only way to combat abuse was through regulating the retail sector, he said.
The Bill also seeks to prohibit the sale of ”concoctions”, and will provide for certain restrictions on liquor advertising.
According to the final draft, a company cannot advertise liquor or methylated spirits ”in a false or misleading manner” and may not target, or attempt to attract, people under the age of 18.
DTI deputy director general Astrid Ludin told the committee the issue of warnings on alcoholic drinks could form part of a manufacturer’s registration obligations, but this was still a matter for discussion.
The committee is expected to complete its deliberations on the Bill on October 20. – Sapa