The National Economic Development and Labour Council (Nedlac) is pressing ahead with its review of the government’s contentious plans to tighten the regulation of tobacco products and e-cigarettes, business and labour confirmed on Monday.
Nedlac is a consensus-seeking body that includes representatives of business, government and labour, and is required by the Nedlac Act to consider policies and legislation with socioeconomic implications before MPs begin their deliberations.
In an unusual turn of events, Nedlac was not given an opportunity to consider the draft Tobacco Products and Electronic Delivery Systems Control Bill before it was tabled in parliament in December 2022.
Pressure from MPs in the new administration formed after last year’s general election, in which the ANC lost its majority, saw parliament refer the bill to Nedlac for review in November.
“The commitment from all parties is to work expeditiously,” said Nedlac business convener Kaizer Moyane. Initial hopes of completing the process by the end of January will not be met, but will be concluded by the end of March.
Nedlac would submit its report to health minister Aaron Motsoaledi, who would then introduce it to parliament, Moyane said. He declined to be drawn into a discussion of the business sector’s concerns about the bill, which seeks to regulate vapes and e-cigarettes for the first time.
Among the bill’s measures are a complete ban on smoking and vaping in public spaces, the introduction of plain packaging with graphic health warnings and the prohibition of vending machines. It will also ban the advertising, promotion and sponsorship of vapes and tobacco-related products and prohibit people from smoking in a vehicle transporting children.
Trade union federation Cosatu’s parliamentary co-ordinator Matthew Parks said labour hoped the Nedlac process would help forge consensus on how to tackle SA’s growing trade in illicit tobacco products.
“Given the scale of the problem, we do think we need something strong on it,” he said.
Up to 60% of SA’s cigarette trade is comprised of illicit products, according to a UCT study published last year. Illicit tobacco products include locally manufactured goods as well as genuine and counterfeit products smuggled in and out of SA.
Not only do illicit tobacco products pose potential health risks to consumers (because they may be manufactured at illegal factories), but they represent a huge loss in excise revenue and VAT collected by the SA Revenue Service.
UCT researchers estimate the illicit cigarette trade cost SA R15bn in lost excise revenue and R3bn in lost VAT in 2022.
Parliament’s portfolio committee on health has yet to finalise its provincial public hearings on the bill.
It wrapped up public hearings in KwaZulu-Natal and Northern Cape last year, but still has to conduct a final public hearing in Free State on January 29, followed by another in Western Cape, to ensure two public hearings have been held in each province, according to committee chair Sibongiseni Dhlomo.
Once the provincial hearings are completed, it expects to hold public submissions in parliament.
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