Booze industry thankful, but ...
TOO LATE FOR MANY SMALL BUSINESSES ‘Ban has decimated the industry and threatens its longterm survival.’
The liquor industry has welcomed the partial lifting of the alcohol ban but no reason to celebrate yet as they embark on the long road to recovery. The industry – represented by bodies like the National Liquor Traders Council), the SA Liquor Brand owners Association (Salba), Vinpro, and the Consumer Goods Council of SA – has welcomed Monday’s announcement.
“The ban has decimated the industry and threatened its longterm survival. Moreover, this has led to job losses, a rise in illicit trade and a significant decline in its economic contributions,” they said in a statement.
It was calculated that the decrease in excise tax contributing has declined by more than 28% from R47 billion in 2019-20 to R34 billion in 2020-21.
CEO of Salba Kurt Moore said the six-week ban had left the industry on its knees. “This development is no quick fix for our long-term economic survival. We call on government to work together with us to find a workable solution going forward that protects lives while preserving the livelihoods of around one million people who rely on some form of income from this sector.”
Rico Basson, managing director of Vinpro, a nonprofit company representing wine producers and cellars, said unbanning alcohol was necessary.
“One of South Africa’s oldest but most significant industries has suffered appallingly at the hands of these lockdown restrictions,” he said, adding it had come too late for many small businesses that have not been able to weather the storm of Covid-19.
Piet le Roux, chief executive at Sakeliga, said a large-scale reform remained the only option for the government to undo the damage already done.
“The threat of future lockdown measures will, until greater certainty prevails, discourage businesspeople from investing and resuming operations.
Basson added that restaurants on the verge of collapse are being forced to pay higher wages.
“Government is now also openly providing relief for businesses in tourism on the basis of race. Overall, the government remains committed to greater centralisation, expropriation, licensing, BEE and other harmful policies.”
Political analyst Daniel Silke said billions of rands of proposed investments have been wiped out as a result of the ban of liquor sales. “We have seen hundreds of jobs and the dependencies of those who have lost jobs due to the liquor ban.”
He said the extension of the losses had yet to be quantified. “We have to add to the revenue loss by the South African Revenue Service over this period through a loss of sin tax from alcohol.”
DearSA’s managing director Rob Hutchinson said the lifting of the ban was welcomed.