/ 3 September 2003

New Liquor Bill gets the nod

The National Assembly gave the Liquor Bill the nod on Tuesday, paving the way for the controversial legislation to complete its passage through Parliament.

It now goes to the National Council of Provinces for concurrence.

Introducing debate on the bill, Trade and Industry Minister Alec Erwin said the measure was, in a sense, a building block in the concept of co-operative governance set out in the Constitution, in terms of the respective responsibilities of national, provincial and local government.

”There’s no question that we needed a new regulatory dispensation in this industry.”

It was the result of an exhaustive process involving many stakeholders in one or another form, reflected broad agreement with the industry, and addressed technical and constitutional matters raised earlier, Erwin said.

The bill seeks, among other things, to regulate the manufacture and distribution of liquor.

It allows for cross-ownership between manufacturers, distributors and retailers, although applicants for licences will have to meet certain criteria set by the minister.

These include commitments to combat alcohol abuse, and for black economic empowerment and the extent to which the licence registration will restrict competition.

It also seeks to prohibit the sale of ”concoctions”, and will provide for certain restrictions on liquor advertising.

The Democratic Alliance’s (DA) Mark Lowe said that while the DA supported the bill’s aims, it disagreed, sometimes fundamentally, on the methods to achieve them.

”Ultimately, the bill is a squandered opportunity to economically empower and further the interests of thousands of small black businesses who remain shut out,” he said.

The DA believed, among other things, that restrictions on the sale or distribution of alcohol should only be targeted at the real problem –abuse of alcohol.

”The sale of alcohol to underage children or obviously intoxicated adults must be strictly prohibited and strongly policed — preferably by provincial and municipal authorities which are best placed to ensure success.”

”Otherwise market forces should govern the organisation of the liquor industry, as with virtually all other consumer goods, subject to existing anti-competitive behaviour and quality control legislation,” Lowe said.

Speaking in support of the bill, Rodney Rhoda of the New National Party (NNP) said the impetus behind the formulation of a new liquor policy and legislation was primarily twofold — firstly, to ensure the effective regulation of the industry, particularly the sale of liquor, to minimize the potentially harmful consequences of liquor on society; and secondly to address the historical legacy of liquor regulation in South Africa through restructuring the industry, he said.

The African Christian Democratic Party’s (ACDP) Paul Swart welcomed the provisions for industry commitments to combat alcohol abuse, so rampant in society and a major contributing factor to the high levels of crime, and domestic instability.

He appealed to provinces to ensure provincial legislation retained the ”closed days”, namely Christmas Day, Good Friday, and Sundays for the sale of liquor by retailers, such as corner cafes and supermarkets.

Nonhlanhla Nkabinde of the United Democratic Movement (UDM) said the importance of properly regulating the industry was beyond doubt.

In economic terms the industry generated billions of rand a year and provides employment for thousands of South Africans.

In social terms the proper regulation of liquor to avoid abuse and a host of social ills was vital. ‒- Sapa