socio-economic costs of alcohol abuse speech delivered by Deputy Minister
Elizabeth Thabethe, Department of Trade and Industry Campus
20 August 2007
Programme Director
Ladies and gentlemen
Liquor regulators in this country, particularly the National Liquor
Authority, are conferred with a legislative mandate to regulate the liquor
industry such that the socio-economic costs of alcohol abuse are reduced. They
are also mandated to ensure that the development of the liquor industry occurs
in a responsible manner and promotes an ethos of social responsibility.
This mandate can be achieved, amongst others, through the strict enforcement
of the liquor legislation and the registration or licensing and monitoring of
the activities of manufacturers, distributors and retailers of liquor. However,
experience shows that the effective enforcement of the law alone is inadequate
to address the socio-economic costs of alcohol abuse and ensure the responsible
development of the industry.
Research shows that the liquor industry records an annual turnover of over
R30 billion. Excise duties collected on alcoholic beverages were estimated at
R4,2 billion in 2003/04. However, the social costs of alcohol-related trauma
and accidents far exceed the revenue collected. Alcohol abuse is estimated to
cost South Africa in excess of R9 billion per year. Given information
asymmetries that characterises this industry it is in the public interest that
government, through liquor regulators, intervenes in a manner that empowers the
consumers and facilitates that they make informed choices.
There is a growing realisation amongst policymakers and regulators that the
socio-economic challenges that are associated with alcohol abuse can also be
overcome through empowerment and education of both consumers and liquor
traders.
Consumers of liquor products, similarly with consumers of other products,
are entitled to be aware of the effects of excessive alcohol consumption. The
National Liquor Regulators' Forum, a body constituted by the National Liquor
Authority of the dti and nine provincial liquor regulators have developed an
education and awareness programme that aims to contribute to the reduction of
the socio-economic costs of alcohol abuse.
The primary aim of the programme is to educate the industry about their
legislative obligations such as complying with the prohibition to sell liquor
to intoxicated persons or to sell liquor to minors or to sell liquor to
unregistered traders or provide employees with liquor in lieu of remuneration,
with the view to achieve voluntary compliance. On the other hand, the campaign
will focus on educating the public and creating awareness about the effects of
alcohol abuse.
This awareness programme is long overdue, given the risks associated with
alcohol consumption. I am however heart warmed to see that liquor regulators,
both at provincial and national sphere of government, as well as the industry
are holding hands together in the fight against alcohol abuse.
This campaign is launched in this month, the Women's month, to create
awareness of the effects of alcohol abuse on women, particularly pregnant
women. I am aware that research conducted by Foundation for Alcohol Related
Research (FARR) has found that De Aar, which is based in the Northern Cape was
pronounced as the area with the highest incidents of Foetal Alcohol Syndrome in
the world.
According to research, at any given time about five hundred thousand South
Africans are suffering from Foetal Alcohol Syndrome Disorders, a medical
condition or disorder that manifests in an innocent child whose mother drank
alcohol during pregnancy. People living with Foetal Alcohol Syndrome Disorders
have an "IQ that is low as a result of their stunted brains and, consequently,
they can be easily influenced and led astray. Some of the maternal risk factors
associated with Foetal Alcohol Syndrome are heavy or binge drinking, low
religiosity, influence of the partner and mother in alcohol consumption, poor
education, among others.
Alcohol abuse manifests in a variety of other ways. For example, alcohol
abuse by workers can adversely affect their performance and productivity at the
workplace. Major elements of the cost incurred by alcohol abusing workers
include the reduction in productivity, earnings of workers and deaths in the
workplace that impact negatively on individuals, families, companies and the
economy in general.
A wide range of physical, mental and social harms are also related to
excessive alcohol consumption. Most health professionals agree that alcohol
adversely affects practically every organ in the human body. The far-reaching
implications of alcohol abuse should not be under estimated as it threatens the
stability of families and the future of our youth, influences criminal
behaviour and contributes to poverty and unemployment. Alcohol abuse is also
linked to car accidents and other forms of trauma, domestic violence, social
ills and work related problems.
What we should therefore learn from the FAS research findings in De Aar is
that alcohol abuse has the potential to devour at the social fabric of our
society dictating that we identify and engage effective interventions to
address this challenge. Amongst other interventions, we should make sure that
every woman in De Aar and in the whole country is aware of the effects of
alcohol consumption during pregnancy.
Other interventions should focus on reducing easy access to liquor for
vulnerable groups such as minors and pregnant women. This may be achieved by
ensuring that the so-called dop system is uprooted. Through this system women
had easy access to liquor as their partners would be paid through the provision
of liquor instead of wages and salaries.
It has been established that to create a competitive and enabling economic
environment, effective and consistent regulation of the business environment is
imperative. Furthermore, compliance with regulatory requirements boosts both
the investor and inventor confidence and this in turn improves and strengthens
the South African economy while at the same time, it protects consumer.
Non-compliance to liquor regulation carries some harsh penalties. The penalties
range from five hundred thousand to a million rands and imprisonment of up to
five years.
I am aware that provinces have taken the challenge of streamlining the
liquor industry seriously and they have, in their legislations and bills,
suggested creative ways of ensuring that the "shebeen" industry is regulated.
The regulation of this sector will also contribute to the reduction of the
socio-economic costs of alcohol abuse.
Hence I call upon liquor traders to ensure that they act within the rules
and but also promote a culture of social responsibility and strengthen their
commitments to combat alcohol abuse. We believe that the industry can play a
significant and effective role to reducing the socio-economic costs of alcohol
abuse. This they can achieve by complying voluntarily with liquor legislation,
promoting responsible drinking and making financial and non-financial
contributions to combat alcohol abuse particularly at the retail level of this
industry.
I am also pleased to hear from the industry, the role that they play and the
commitments that they have made to continue to complement government in
encouraging responsible trade as well as responsible drinking. I applaud the
National Liquor Regulators Forum for the initiative that they have taken to
raise awareness with regards to the adverse effects of alcohol abuse. I
acknowledge their initiatives to engage the liquor industry and providing
information and education to ensure that the objective of voluntary compliance
is achieved.
Furthermore it is important that we invite women to take advantage of the
services rendered by The Department of Trade and Industry and Economic Affairs
Department within provinces. We are custodians of a number of programmes that
promote and support the development of businesses. These programmes range from
incentives and support to small businesses, particularly women-owned businesses
to the encouragement and development of co-operatives.
The departments also offer a wide range of services to the consumer to
ensure that the consumer is protected and receives the best quality goods and
service there is. I am therefore encouraging you to utilise some of these
services available so that a few years ahead, we can see a significant
reduction in the costs of alcohol abuse that are perpetuated among other things
by poverty and unemployment.
I call upon the industry and all relevant institutions to support this
liquor awareness programme as it rolls out in various provinces. I hope and
believe that if we work together we will be able to achieve our objective of
reducing the socio-economic costs of alcohol abuse.
I thank you
Issued by: Department of Trade and Industry
20 August 2007
