‘Tobacco bill plan will kill our businesses’

Entrepreneurs are not satisfied with tobacco bill being proposed by the government. They claim it will have a negative impact on their businesses, especially in townships, and damage the economy

THE government has been urged to scrap its proposed tobacco bill following an outcry from the industry.

This comes after Thursday’s closing date for public submissions on the Department of Health’s Control of Tobacco Products and Electronic Delivery Systems Bill, which seeks to impose further restrictions on selling and smoking cigarettes.

It seeks to introduce provisions that will see the banning of point-of-sale advertising and displays, the introduction of plain packaging, the scrapping of the sale of single cigarettes, a ban on smoking areas in bars and restaurants as well as stricter regulations on smoking in public spaces.

Organisations representing informal traders, hawkers, e-cigarette traders and unions have hit out at the bill, saying it would kill the industry by way of job losses.

Western Cape Liquor Traders’ Ben Mdebuka said: “We feel this bill, as it stands, will undermine the livelihood of the people in the townships. It is going to kill business; it will criminalise small traders because it is going to be difficult to comply with it. If they say you cannot smoke 10m from the door or window that already takes you next house.”

“Although it won’t affect people’s liquor licences directly, what it will do is where you have on-consumption licences and if people must leave and go and smoke outside, obviously they will take their drinks… and that is the indirect effect.

“It is not practical because it has not been tested on the township landscape; it looks right on the surface because it has been taken from developed countries and that is why we are saying if they are hell-bent out to the on going ahead with it as it stands, exempt township businesses from it.

“An exemption for us would more likely circumvent the bill and that is why our first choice is to scrap it – there is nothing wrong with the existing bill, it just needs to be earnestly implemented. Many township businesses have gone out to spend money to provide smoking zones. And now, if those are scrapped, it is wasted expenditure.”

The SA Informal Traders Association claimed the bill would cost its members a third of their profits if it was brought into law as it stands.

The National African Federated Chamber of Commerce raised concerns about the bill damaging the economy by reducing free and fair competition. “Marketing is not only a right for businesses but a consumer right,” said its president, Lawrence Mavundla.

“The tobacco bill seems to be in direct conflict with South Africa’s competition policy as it reduces the right of producers to compete and the right of consumers to choose. There will be an increase in tobacco smuggling as legal producers find it harder to reach their consumers.”

Legal expert Shane Johnson said the bill raised a number of legal issues regarding its rationality and whether it was enforceable.

“The way it is drafted is not in line with how legislations are usually drafted and enforced and there are certain provisions that are normally included in a bill which are absent, for example the exemption mechanism. Most pieces of legislation that impose restrictions of this nature have an exemption procedure that can be followed by any company or person who wishes to be exempt on good cause.

“The bill wants to regulate e-cigarettes and vapes in the same manner as nicotine products are currently regulated and what seems to be missing is a proper investigation into the health problems posed by what they call electronic delivery systems,” Johnson said.

“The issue of enforcement is something the department did not consider… I don’t think we are approaching strict enforcement on the current legislation, so I don’t understand how the legislation is being made stricter; I don’t know how it will be enforced.

“If we look at the impact this bill is going to have on e-cigarettes and vaping, an industry that is very new and nowhere near as established, that is why you see such a big outcry because they realise if they are lumped together with tobacco products, it will crush the industry.

“The bill prohibits the displaying of these products, so what is going to happen to is they are going to go underground and they will be sold on the black market, making it even harder to regulate.

“The bill is very vague, it is poorly drafted, it leaves gaps and questions that are unanswered.’’