Programme Director;
The SAB Head of Transformation and CSI, Mr Hepsy Mkhungo;
The SAB East Coast Regional Director, Mr Greg Uys;
Traders from KwaZulu-Natal (KZN);
Members of the Media;
Ladies and gentlemen;
All protocol observed
It is indeed our pleasure to be addressing you especially the liquor traders within the province on this occasion of the joint initiative between the Department of Economic Development and Tourism and the South African Breweries (SAB).
It is quite fitting that this event marking the start of a partnership with you, the liquor traders, SAB the industry player and the department is launched on a day subsequent to the closure of the second Biennial Anti Substance Abuse summit which took place on 15 to 17 March 2011 here in Durban. Our timing could not have been more perfect.
Our government’s concern with regards to the negative impact of alcohol and its impact on the fabric of society is a matter of public record. Abuse of alcohol affects all aspects of our lives. The impact of alcohol abuse when not consumed or served in moderation also affects the economy of not only KwaZulu-Natal (KZN) but the entire country. That is why both provincially and nationally, government is leading a campaign to reduce alcohol and substance abuse within communities and has also called for a reduction in the supply and demand of alcohol.
The President of South Africa President Jacob Zuma in his State of the Nation Address also highlighted the negative impact of alcohol on society and called for a restriction on the number of liquor outlets, referred to a possible increase in age limits and also called for the implementation of stricter law enforcement measures.
South Africa as a country has placed the spotlight on looking for a solution on the scourge of substance abuse, and KwaZulu-Natal in particular has declared a no nonsense approach to licensed outlets which fail to comply with their licence conditions.
Ladies and gentleman, today’s launch is about creating a partnership with you our key stakeholders. It is the traders that have first–hand and intimate contact with those who use alcohol. It is, among others, some tavern owners; some of those who run pubs and clubs as well as some of our bottle store owners, who participate in irresponsible trading, thereby denting the image of the whole industry. Today’s launch of this responsible trader programme is aimed at precisely eliminating those elements who drag in the mud the name of liquor traders. Today’s launch is about galvanising all the responsible traders to become a change agent and to lead by example in responsible trading.
As traders who derive their livelihood from this industry, it should worry you that there is a perception out there, because of a few elements, that you do not care about the well-being of our society. You should ask yourself what you can do to improve this liquor industry and to make it an economically viable business which gains the support of communities. We believe that your role through empowerment would be to change behaviour and conduct your business in a responsible manner and to help improve the quality of our lives and our communities.
Today, we need to get your commitment to be part of this programme
Programme director, as the regulator, we provide opportunities for economic development through liquor licensing but also we have to consider the negative effect that our society is exposed to while licensing. Currently there are 10 098 premises that are licensed to trade in liquor. A total of 4 721 of the licensed outlets are taverns operating within residential areas, 2944 restaurant and 2 433 liquor stores. We estimate that each licensed premise employs an average of two people per outlet. In short we can safely say that the liquor industry in this province creates more than 30294 job opportunities. Clearly the impact of this industry in our economy is evident.
As a result, Programme director, as the Department of Economic Development, we are also awake to the fact that we cannot afford to kill the hen that lays the golden eggs. Our approach to compliance is not a big stick approach but one where we trust the bonafides of traders and appreciate that they are also responsible citizens. That is why we feel that this programme of empowering traders with knowledge so that they, as responsible business people, can make the right choices, is critical for the future of this industry. However, we are also aware that constitutionally, we have to regulate this industry. While we do not want to use stringent measures against those who do not follow the letter and the spirit of the law, we will not hesitate to use these measures in order to safeguard the future of the industry and the society in general.
In this regard, we take counsel from the words of the President of the Republic of South Africa, Honourable Jacob Zuma who, in his State of the Nation Address advised the nation that: “I have directed our police force to deal decisively with people who sell drugs to children in Cape Town and other areas. We will also not tolerate tavern owners who sell alcohol to children”.
Programme director all of us know that selling liquor to a person under the age of 18 years is an offence. All of us are also aware that the consumption of liquor by minors has increased drastically. That is why one of the Anti-Substance Abuse Summit resolutions was that there will be a zero tolerance to alcohol abuse with particular reference to children consuming alcohol as it had been noted that there is an increase at the rate at which alcohol is being sold and consumed by young children.
Programme director, for this financial year, the department has conducted inspection throughout the province together with provincial South African Police Service (SAPS) and station designated police officers. The findings during these inspections were shocking after they revealed that 70% of licensed premises do not comply with liquor licence conditions. Non-compliance with trading conditions creates a challenge in our society. Irresponsible trading by licensed premises will directly and indirectly negatively affect the community where the business operates. Just this year we have received 27 complaints from January 2011 to date in respect of licensed premises that don’t comply with their licence conditions.
Trading in liquor is regulated, therefore when these licences are issued by the KZN Liquor Board, conditions are imposed to ensure that responsible trading is adhered to. If the investigation reveals that there has been a breach of the trading conditions, the KZN Liquor Board will not hesitate to either revoke or suspend the licence in terms of the provisions of the liquor Act.
Currently, the KZN Liquor Board has already scheduled 4 section 11 hearings in terms of the 1989 Liquor Act, for the coming weeks. The outcome could result in the revocation of the licence. As a department we have already initiated discussion with the Director of Public Prosecutions for the prosecution of traders who trade illegally and for those who fail to meet the compliance requirements of their licence conditions. We have also held discussions with the provincial crime prevention commander of the SAPS and there is a commitment to adopt a no nonsense approach to violations in relation to liquor licences and illegal trading. We urge all liquor licence holders to comply with conditions of their licences.
To this end, the department has recognised that in order to bring about reform in behaviour in relation to selling or serving liquor to the public that traders must be committed to the same goals as the department.
It is because of this reason that we have initiated the Trader Intervention Programme jointly with the SAB. The department has partnered with SAB Limited in the development of a Trader Intervention Programme because it aims to provide training to all licensed traders to enable them to trade responsibly. The module focuses on key issues facing the liquor industry: social and health concerns around alcohol abuse, creating safe environment, underage drinking, drinking and driving and availability of alcohol (trading hours). These issues impact on people’s lives and this programme highlights your responsibility as a trader in your community. We are pleased to state that we are targeting 2400 traders within the province and currently there are 100 traders that have undergone this programme with effect from today. Our department has invested R3,5 million towards this programme while the SAB has pumped close to R5million into the same programme. All in all, this programme is worth about R9 million and we believe that this is money well-spent.
The Trader Intervention Programme provides an opportunity for a trade to do a reality check; traders can note the areas of non-compliance and work towards conducting their business in a responsible manner.
We want to congratulate all the liquor traders that comply with their licence conditions and urge them to continue conducting their trade responsibly. In the same vein, we are also aware that some traders are forced not to comply because their competition continues to trade illegally and, as a result they lose out. It is for this reason that we challenge our partners, not only SAB, to incentivise the majority of our traders for complying with the regulations. As government, we will deal decisively with those who break the law. Non-compliance will no longer pay in KwaZulu-Natal.
The department has also partnered with SAB Limited to install 20 billboards within the province.
The Billboards will communicate messages for traders, communities, youth and women. These messages are conceptualised to sensitise users and those who are prohibited by law from using alcohol, about the consequences of the abuse of alcohol in our communities. The Billboards, among others, cover these messages:
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Your customers are your lifeline protect them from accidents
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People of KZN report irresponsible and illegal trade
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Trading after hours affects your, neighbouring community.
Today’s event marks a practical venture by our government to empower the traders and safeguard the future of this industry. We do this, as we said, because we value the positive contribution made by this industry to our economy. However, if this industry does more harm than good, then we will have to unleash the full wrath of the law against those who trade irresponsibly.
The ball is in the court of the traders and those who are stakeholders in this industry to ensure that this industry continues to thrive and contribute to our growth and development. In this regard, we also encourage you to inform your fellow traders to also comply with their licence conditions. The department is embarking on an approach of quality outlets as compared to quantity outlets. Hold onto your licence as there are other applicants who are waiting in the queue for licences. Non compliance will result in your licence being revoked.
We commend SAB for partnering with our department on this ground breaking initiative. May this serve as an inspiration to other stakeholders to start initiatives of this nature. We also wish to salute the first of traders who have under gone this training today and for eagerly volunteering their time and commitment to this programme.
Ladies and gentlemen, we are the first province to launch such an exciting programme and let us as KwaZulu-Natal lead by example by being the most responsible province when trading in liquor.
I thank you
Source: KwaZulu-Natal Economic Development and Tourism
