Adapt alcohol ban to avoid jobless pandemic, Western Cape urges

Pressure is mounting on the national government to lift the ban on the sale of alcohol and to allow for more economic activity to prevent huge job losses.

The DA-led Western Cape government took a firm stance at the weekend that domestic alcohol sales should be allowed immediately, “with smart recommendations” in place.

“These positions have been taken with a view to reducing the impact of a second, equally dangerous pandemic: unemployment. We will now engage the national government on these positions,” Western Cape premier Alan Winde said.

“The impact of this temporary ban is not just felt in our agricultural and farming communities but also in our tourism and hospitality sector,” he said.

Restaurants rely on alcohol sales to be profitable. “If properly licensed establishments are not allowed to sell alcohol on site, they will not be able to remain financially viable.”

The liquor industry, which contributes 3% to SA’s GDP and is responsible for more than 1-million jobs, was dealt a heavy blow in July when the government again banned alcohol sales, arguing this was necessary to lower the alcohol-related trauma load on hospitals and free up resources for Covid-19 patients.

This was the second such ban. The first one, which came into force when SA entered the strict lockdown at the end of March, lasted about 10 weeks, costing the industry R18bn in lost revenue and 100,000 jobs. The industry is worth about R140bn.

Groups representing players in the liquor industry have been engaging with the department of trade & industry and pleading with President Cyril Ramaphosa to lift the ban, arguing that the industry’s contribution to the economy far outweighs the harm it causes due to irresponsible drinking. But their efforts have been in vain so far.

Recently, scientists advising the government and health minister Zweli Mkhize on Covid-19 suggested the ban be lifted as it had achieved its objective.

Winde said as long as the Western Cape can assure access to health facilities for all Covid19 patients, all businesses should be allowed to open provided they follow health guidelines designed to slow Covid-19.

The ban threatens the future of the wine industry, a crucial sector and jobs driver in the Western Cape economy. Stats SA food and beverage data for April and May show a decline in revenue for the sector of 94% and 87% from 2019 revenues.

Winde said pressure had eased on the health-care system, with the number of Covidrelated hospitalisations dropping to below the 1,200 mark over the past few days — the lowest hospitalisation numbers recorded in the province since June.

“In fact, the Western Cape government has now reached a point where we have to carefully consider whether all our field hospitals need to stay open, given these statistics and the scenario provisioning projections,” the premier said.

“While we are seeing an easing on our health platform, the second unemployment pandemic is gaining momentum in our province ... businesses that employ tens of thousands of people are buckling under continued restrictions on economic activity, low confidence and reduced demand.”

Winde said higher levels of unemployment will affect food security, the nutrition of adults and children, and violent crime, and will cost lives now and in the future. “That is why we have maintained that we should not view our response to Covid-19 as a zero-sum game. We can ready our health-care systems to respond and provide care, and we can open our economy safely at the same time.”

The provincial government fully agrees that alcohol-related harm is a major problem in the province and SA, Winde said.

“When the domestic sale of alcohol was suspended during the lockdown, and then again recently, the number of trauma cases dropped immediately. But we cannot view this in isolation of the other consequences a continued ‘ban’ on the sale of alcohol is causing,” he said.

DA MP and trade & industry spokesperson Dean Macpherson said SA needs to urgently turn its focus to the economic disaster playing itself out across the country.

“That is why it is critical that the alcohol ban is lifted,” he said. It is devastating jobs and the economy in the Western Cape and across SA. “Farmers, farm workers and retailers are suffering due to this illogical ban by the national government.”

The department of trade & industry did not respond to requests for comment.