Judge rules against provision in liquor licence act

DURBAN: In a far-reaching decision which may affect more than 1 000 liquor outlets in KwaZulu-Natal, the Supreme Court of Appeal ruled that provisions of a liquor act, which stated that stores could not be situated next to schools or places of worship, do not apply to preexisting licence holders.

The court was dealing with an appeal brought by Shoprite Checkers against a judgment by Judge Mahendra Chetty in the high court in Pietermaritzburg last year, in which he found businesses with old licences (granted under the 1989 Act) and new licences had to comply with the provisions.

The KZN Liquor Licensing Act of 2010, which came into full implementation in 2014, replaced the 1989 Liquor Act.

Those businesses that had licences obtained under the old act were asked to apply to the liquor authority to have these converted to licences under the new act for certification.

The specific provisions at issue give the Liquor Board a discretion “after assessing harm and prejudice” to grant licences when considering applications to operate within a circumference of 500m of a school or place of worship.

But they ban any licence being issued on premises within 80m of a school or place of worship.

Shoprite Checkers had 12 outlets which fell within 80m of a school or place of worship, and it had made applications for licences for these outlets to be converted.

But the liquor authority refused, saying it went against the provisions of the new act. Shoprite then brought the application against the Economic Development MEC, the premier and provincial liquor authority in the high court.

The court papers suggested there were 1 600 liquor shops in the province which fell into the 80m zone.

In the SCA judgment, Judge Xola Petse said on the reading of the act, the provisions which banned businesses from operating within 80m of schools and religious institutions did not apply to pre-existing licence holders applying for conversions of their licences.