President Cyril Ramaphosa has referred the liquor industry to a policy-making body made up of the government, business, labour and communities after the industry raised concerns about a possible ban on alcohol sales as Covid-19 cases increase.
Industry bodies the National Liquor Traders Council (NLC) and Liquor Traders Association of SA, which represents big players including the bulk of township-based taverns and bottle stores, wrote to Ramaphosa on Sunday requesting a meeting to discuss the response to the growing Covid-19 infections and a possible third wave in the country.
“The presidency has noted the [industry’s] submission and referred [it] to the National Economic Development and Labour Council (Nedlac), which represents business in discussions with government on Covid-19 responses,” Ramaphosa’s spokesperson Tyrone Seale said in response to questions from Business Day.
The government introduced alcohol bans on three separate occasions in 2020, totalling about 20 weeks, in a bid to reduce the number of trauma patients in hospitals overwhelmed by Covid-19 cases. The bans attracted widespread condemnation for the devastating effect on the economy, including R38bn in lost liquor sales, R27bn less tax revenue, job losses and billions in cancelled investment.
Now there are fears that another ban may be on the cards as Covid-19 cases surge and the government struggles with the vaccine rollout.
In their letter, the liquor industry bodies said where restrictions in economic activity are required, these should be explained with clear end dates.
“This allows businesses to plan, rather than facing an open-ended disruption, which is significantly more difficult to manage and leads to far greater business distress and job losses. Setting clear end dates, or at least clear criteria on which restrictions would be lifted (such as infection rates) is vital.
“We wish to assure you that as liquor traders we will continue to play our part in the fight against the spread of Covid-19 in the liquor trade and in the communities in which we operate,” said Lucky Ntimane on behalf of the industry.
Last week the Southern African Alcohol Policy Alliance in SA (Saapa SA), a lobby group that wants to drive health-promoting alcohol policies, called for stricter restrictions around alcohol. It called for a complete ban on the consumption of alcohol before driving, a ban on all alcohol price promotions, and a prohibition of all forms of alcohol advertising unless it is at the point of sale — which would mean a ban on TV, radio and print adverts.
Dean Macpherson, the DA’s MP and trade & industry spokesperson, said the government must reject attempts by lobby groups such as Saapa SA to sneak in liquor policy changes using the national state of disaster.
“It has become far too easy for the government to target the liquor industry than to fix the collapsing healthcare system. The government is also more than welcome to put back on the table the Liquor Amendment Bill, which has gathered dust under two successive ministers. Then we can deal with any proposals put through by lobby groups.
“However, we would simply not be having these discussions if we had embarked on a meaningful vaccination programme,” Macpherson said.
The Liquor Amendment Bill, introduced in 2016 and yet to be passed, proposes limiting liquor advertising and raising the age limit for drinking from 18 to 21 years, among other measures to curb alcohol abuse.
Correction: May 26 2021
This story has been updated to clarify that Saapa SA is not calling for an outright sales ban but tighter alcohol sale restrictions. The story also corrects the name of the lobby group to Southern African Alcohol Policy Alliance in SA.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.