The Citizen (Gauteng)

Booze industry thankful, but ...

TOO LATE FOR MANY SMALL BUSINESSES ‘Ban has decimated the industry and threatens its longterm survival.’

- Marizka Coetzer – marizkac@citizen.co.za

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.

 ?? Picture: Nigel Sibanda ?? HAPPY HOUR. EmaXhoseni Cotton Pub and Grill owners stock up in Hillbrow, Johannesbu­rg, after the lifiting of the liquor ban yesterday. President Cyril Ramaphosa announced that the sale of alcohol by licensed premises for off-site consumptio­n is now permitted from Monday to Thursday, from 10am to 6pm.
Picture: Nigel Sibanda HAPPY HOUR. EmaXhoseni Cotton Pub and Grill owners stock up in Hillbrow, Johannesbu­rg, after the lifiting of the liquor ban yesterday. President Cyril Ramaphosa announced that the sale of alcohol by licensed premises for off-site consumptio­n is now permitted from Monday to Thursday, from 10am to 6pm.

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