Small business owners in townships have expressed strong opposition to the government’s proposed Liquor Amendment Bill and the possible changes to tobacco regulation, saying they are unworkable and will irreparably hamper their business operations.
This was the conclusion of a survey conducted by the Gauteng Liquor Forum (GLF), the South African Liquor Traders Association (Salta) and the National Tourism Hospitality Association (NTHA) on 155 spaza, tavern and shebeen, restaurant and bottle store owners operating in townships.
The three organisations, which together represent 35,000 small businesses, argue the proposed changes will lead to the immediate and blanket criminalisation of small business owners and informal traders operating in townships across the country.
This was also the view of 95% of those interviewed in the survey.
The amendments to the Liquor Act propose to raise the legal drinking age from 18 to 21 years, and to make the suppliers of alcohol to an already inebriated customer potentially liable for any subsequent harm caused.
Health Minister Aaron Motsoaledi meanwhile has indicated he wants to introduce a ban on all outdoor smoking in public areas, the abolition of all indoor smoking areas, a ban on the display of cigarettes at retailers, the removal of all recognisable branding from cigarette packs, and a prohibition on the sale of alcohol within 500m of a residential area, sports club, stadium or near to public transport.
In the survey, in which township business owners were asked how the liquor policy and tobacco proposals would affect their business, 87% said the laws would create unnecessary problems between businesses and their patrons; 75% said it would increase police corruption; 83% thought the liquor and tobacco laws would force them to close their businesses; 95% said these laws would immediately criminalise small businesses, informal traders and ordinary South Africans; and only 10% believed they would not cause any harm to their business.
The respondents said better alternatives existed such as education programmes for youth warning of the dangers of drinking and smoking, and tougher enforcement of existing laws.
Salta president Mish Hlophe said the laws were neither feasible nor workable in a township environment. If the government wanted to achieve its target of creating 450,000 new small businesses and 1.3-million jobs by 2019, it needed to create a regulatory environment that supported and did not hamper growth.
GLF president Linda Madida and a vast majority of those interviewed said removing the brands from packs would only help crime syndicates to sell illegal, cheap cigarettes, including to young children.





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