Programme Director,
Honourable Mayors and Members of the Mayoral Committees present,
Major General Mpembe, Head of Visible Policing in the North West,
The Acting Chairperson of the Liquor Board and other Members Present, Mr Abram Tlaletsi, Head of Department,
Ms Thezi Mabuza from the National Liquor Authority,
Members of the Liquor Trade present,
Ladies and gentlemen.
Dumelang Bagaetso.
Programme Director, allow me to preface my keynote address with this indication that this gathering here today, belongs to one of the most important constituencies under our portfolio. Government assertion emanates from the fact that the retail industry which is consumption driven, contributes significantly to economic growth and job creation.
You will also bear with us when we also indicate that alcohol is a beverage that we use to spike our lives once in a while in making ourselves happy and mostly for the excuse that it helps us to forget our sorrows, rightly or wrongly so. We believe for instance that no party can ever be successful if no alcohol beverages are served!
On a more serious note Programme Director, the consumption of alcohol as a beverage, results in immense contributions into the growth of our economy. We know for a fact that there is a very wide value chain network to service consumers’ alcohol needs.
You will also realise Programme Director that through this extended value chain, there is a lot of transactions and multiplier effects that occur in the economy and thereby inducing economic growth.
It is also for this reason and others that as the Provincial Government, we should periodically meet with you as stakeholders, to engage, exchange views and provide clarities where these are sought regarding the control and management of this industry.
This is one of the highly regulated industries and it is also always under the radar owing to perceived negative impacts induced through the abuse of liquor consumption.
You will also recall Programme Director, that the month of January of every year, is also intended to be the Liquor Month for the North West Province through the commitment made a while ago at the National Liquor Policy Council.
Programme Director, you will be interested to know that the North West Province database had as at the end of 2012, a total of 7 311 liquor licenses categorised as follows:
- 734 were still conditional licenses and awaiting a final approval by the Liquor Board .
- 3457 were taverns (i.e., on consumption special licenses) whilst
-
1 299 were bottle stores as licensed restaurants we do know that
70% of these operate illegally as taverns. - 46 hotel licenses in the province
The South African liquor industry is a major force in the South African economy and provides employment and income to thousands of households whilst making a substantial contribution to government taxes and foreign exchange earnings. In terms of employment that includes direct, indirect and induced, the employment figure was estimated to be 522,500 people.
It was also indicated that the liquor industry’s contribution to South Africa’s Foreign Exchange earnings was R3.8 billion in 2008 and that the growth in liquor exports since 2000 has grown by 253%. Lastly, the industry’s Growth Domestic Product multiplier was during this period estimated at 2.08 which means that for every R1.00 in sales revenue generated by the liquor industry, R2.08 was added to the country’s GDP.
It is also indicated that in terms of our contribution to the South African Economy, our contribution for 2012 was 6, 7% and even lower to those of Limpopo and Mpumalanga. We were actually ranking third from the bottom. This does not reflect well on us as the business people in the North West.
Programme Director, the Consultative Lekgotla is informed amongst others by the need to encourage participation in liquor trading governance issues towards creating a responsible and sustainable trading that is governed by a culture to comply with prescribed legislative requirements.
There has generally been an observation by the department and other authorities on the increased non-compliance with prescribed licenses conditions and the requirements of other applicable Acts within the liquor trading environment in the Province.
As indicated in the past, this consists amongst others, of the sale of liquor beyond stipulated trading hours, liquor being sold to minors, pregnant women and over-intoxicated patrons as well as to allow uncontrollable behaviour of patrons in our liquor outlets that result in public indecency and incidents of violence which are some of the complaints received by the North West Liquor Board.
There is also the illegal leasing of liquor trading premises to foreigners some of whom do not qualify to trade in this regard as well as to undermine the rule of Tribal Authorities.
Police reports have also indicated that some of these outlets have been infiltrated by criminals to conduct criminal activities such as prostitution, drug trafficking, etc., which are issues that undermine the values of our society whilst also corrupting our youth.
It is indeed very sad Programme Director, that as a society or as the people in the North West, we opt not to place much value on the correct upbringing of our children and will also allow foreigners to exploit and degenerate them into alcoholics through allowing these foreigners liquor trading space illegally.
In certain instances we are the guilty party through our selfish business operations. I was also informed a while ago that some of our banking institutions have gone to the extent of putting automatic teller machines in your taverns and i think this is immoral and for those licensed traders that have entered into this arrangement, my view is that we need to reconsider.
Programme Director, I was alarmed to note as contained in the Baseline Study of the National Liquor Act 59 of 2003 that the North West ranks third amongst provinces as a province with men that indulge in binge drinking, surpassed only by the Western Cape and the Eastern Cape. It is also indicated that this binge drinking is mainly popular amongst boys who belong to the age group of 16 and 19 and who should still be at learning institutions.
I must also confess that our girls are not far behind in this regard. What also becomes material is that the allowed age limit for drinking is 18 years which now poses a question to us as to how do children who are 16 and 17 come buy liquor? Surely they are not buying not from their parents. We also learn from this study that the North West ranks third in terms of average household expenditure on liquor. Surely we are not becoming a nation of drunkards!
The above being the case, it is our view as government that we should examine some of the contributory factors as stakeholders and say:
- “how can we bring back respectability to our trade as traders?”
- “how can we grow our businesses in a manner that these would contribute positively into our society and our economy?”
- “lastly, how can we make our liquor outlets to be sustainable and generate wealth?”
These are questions that I would like to leave them to you for answers but remember that if anything else fails, we will have no choice but to tighten the liquor legislation.
In closing Progrmme Director, allow me also to indicate that we have come to the conclusion that extended business hours that were in the past approved by the Liquor Board do not bring about any benefit to the society and instead contribute to the opposite.
In this regard and also knowing that these were discretionary by the Board, we have instructed that they be discontinued. We have also come to the conclusion that all those extended hours previously approved must be withdrawn by the end of March this year. This therefore means that as at the 1st of April 2013, all previously approved extended hours’ permits will be null and void.
I also need to indicate that very soon and probably before the end of the 2013/14 financial year, all liquor fees will be revised with new fees introduced. You will remember that all currently payable license and renewal fees have been the same since 1989 whilst administration costs have substantially increased. As government, we need to recover these costs and therefore the need to review these fees. You will however be informed on time when decisions have been made in this regard.
I wish you a successful participation.
Thank you very much!
