Cancellation of liquor licences hurts economy and job creation

The cancellation of trading licences and registration certificates of liquor manufacturers, distributors and retailers impacts negatively on the South African economy. This was said by the Chief Director of the National Liquor Authority of the Department of Trade and Industry (the dti), Ms Thezi Mabuza.

Mabuza said that traders need to comply with the legislation in order to avoid these cancellations. She was speaking at a seminar that was hosted by the dti at the Suncoast Conference Centre in Durban.

The purpose of the seminar was to increase compliance with the National Liquor Act by liquor manufacturers and distributors, and also to promote and inculcate adherence to the mandatory conditions stipulated in their registration certificates.

“One of the reasons for the dti to support the liquor industry is that it contributes to the growth of the country’s economy and job creation. Therefore, when licences are cancelled because owners of these businesses fail to renew them or to comply with the law, and are therefore compelled to close shop, the impact on the economy and our job creation efforts is negative. But for the industry to take its meaningful place in the country’s economy it needs to be regulated, and all stakeholders need to adhere to the provisions of the law and its regulations, as well as to conditions of registration imposed on all registrants when operating in this industry,” said Mabuza.

She added that by complying with the legislation, the liquor industry will contribute to reducing the socio-economic and other costs of alcohol abuses and combating alcohol abuse.

“In addition, compliance will create an industry environment that allows for prevalence of fair competition, entry of new players, job creation, exports, efficiency of operations within the industry, diversity of ownership and ethos of social responsibility within the industry,” said Mabuza.

Industry Association for Responsible Alcohol Use’s (ARA) Mr Adrian Botha said his organisation was committed to partnerships with other stakeholders to implement the most appropriate and effective measures to combat alcohol abuse.

“We believe that government should appropriately and effectively regulate alcohol beverage sales, enforce laws against drinking and driving, and impose severe penalties on those that violate them. The alcohol policy must operate within a reasonable regulatory framework that balances individual freedoms against the well-being of the society,” said Botha.

The Section Head of Liquor, Diverse and Miscellaneous Services at National Liquor Office of the South African Police Service, Brigadier Hlamalani Lebese, said challenges encountered by the Designated Police Officers responsible for liquor inspections throughout the country include difficulties in finding the owners or managers of the liquor businesses at premises, thereby making it impossible to get the required information related to compliance.

Enquiries:
Sidwell Medupe - Departmental Spokesperson
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za

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