The Department of Economic Development, Environmental Affairs and Tourism plans to focus on the facilitation of liquor traders associations in the 2014/15 financial year, MEC Sakhumzi Somnyo said yesterday.
In his policy speech in the Bhisho Legislature he said the aim of this intervention was “to promote self-monitoring, enhance purchasing power through combined purchasing and assist in the identification of illegal liquor traders, thereby broadening the base of regulation and compliance”.
The MEC said this initiative would be “coupled with the implementation of a developmental agenda focusing on business skills training, access to finance, institutional capacity building, business linkages and market opportunities as well as cooperative business development, guided by industry market research.”
He pointed out that the liquor industry was “growing into a major force in the provincial economy, providing employment and income to a number of households and making a substantial contribution to government tax revenue.
“Within a fast growing industry the Eastern Cape Liquor Board (ECLB) is seized with an enormous task of regulating such a vast market. Over 8 500 liquor licences were issued in the past year alone.”
The MEC cautioned, however, that given the socio-economic challenges in the province, “we are mindful of the problem of alcohol abuse,” adding that in 2014/15 attention would be given to embarking on targeted social accountability interventions relating to anti-alcohol abuse, focusing on drunken driving, community roadshows, foetal alcohol syndrome disorder and school-based campaigns.
He said that over the past four years the gambling and betting industry had contributed over R400 million in casino taxes to the provincial fiscus, with over R90 million received in 2013/14 alone.
In 2014/15, the ECGBB was expecting to issue an additional seven bingo and seven Type B Licenses, and collect tax revenue of approximately R104 million, added Somyo.
For enquiries and interviews, please contact:
Sixolile Makaula, Communications Manager
Department of Economic Development, Environmental Affairs and Tourism (DEDEAT)
Cell: 072 751 5001
