World Cup stadium liquor vendors are crying foul over the Department of Trade and Industry’s (DTI) draft liquor policy for the football showpiece and have threatened to challenge the constitutionality of the regulations.
The department’s 2010 Soccer World Cup Liquor Policy says liquor vendors have to fork out more than R40 000 apiece for a special licence at each stadium. They will also have to hand over 2% of their turnover during the World Cup to be used for a responsible drinking campaign.
Several hospitality players told the Mail & Guardian this week that they would consider challenging the policy in court. Attorney Leon Slotow, who represents three suppliers with liquor contracts at World Cup stadiums, said the policy could be subject to a Constitutional Court challenge.
His clients have contracts with all 10 stadiums, so each will now have to hand over R400 000 plus 2% of their turnover. If a Constitutional Court challenge went ahead, there was doubt whether the matter would be resolved in time for the World Cup, he said.
“It’s completely unconstitutional,” said one industry insider who refused to be named.
Meanwhile, the hospitality industry’s fear that all restaurants and bars would be slapped with a R50 000 special licence fee to broadcast World Cup games has proved unfounded. The DTI has said liquor licence holders will be exempt. The confusion occurred because of the department’s poorly worded draft policy, which seemed to suggest that any venue not a “private dwelling” would have to secure a special licence.
The department’s deputy director general, Zodwa Ntuli, said: “This fee will not be applicable to existing pubs and restaurants that already have licences issued by the relevant provincial authority, but to prospective applicants that intend selling or distributing liquor within fan parks and public viewing areas.”