NATIONAL NEWS - This is according to Justice Project SA Chairperson Howard Dembovsky, who said the country is losing billions of Rand over time because of these regulations.
Dembovsky said there is no evidence to show that the consumption of alcohol causes people to be at more risk of contracting the coronavirus as is claimed.
The South African Liquor Board Owners Association (Salba) called for the restricted sale of alcohol during the lockdown period, claiming that, if government doesn’t ease regulations, their industries face the risk of collapse.
Salba CEO Kurt More said it wouldn’t be appealing to government to ease liquor sale restrictions if it weren’t concerned about the future of the industry.
He said many jobs are on the line because of a complete ban and the extended lockdown.
online retailers such as Takealot also called for the easing of the regulations to allow deliveries, saying it may rescue the country’s already ailing economy. Takealot’s Kim Reid said the easing of the regulations may assist in keeping people in their homes.
The Beer Association of South Africa, the South African Liquor Brand Owners Association and Vinpro, representing more than 3 000 wine producers, in their submission to government on 8 April, said the ban on alcohol trade will lead to a surge in the sale of the illicit alcohol.
They estimated that in an extended lockdown period of six weeks the economic impact of a loss of sales the wine, spirits, ready-to-drink and beer categories will lose R12,6 billion in wholesale revenue, with a loss of R3,5 billion in excise tax revenue.
A continued prohibition on wine, cider and spirits exports from South Africa for a six-week period will cost the country R1,3 billion in valuable foreign exchange earnings.
Government maintains its willingness to review the regulations where necessary.
The South African wine industry engaged government and have submitted different business cases, including supporting documentation ranging from financials and economic impact, to the socio-economic impact and forecasts, based on current trends that are taking shape, with some scenarios predicting a severe financial crisis and direct loss of jobs in the event of a prolonged lockdown.
The industry’s Exporter Task Team put their case before the Ministers of Agriculture and DTI, and submitted it on behalf of WoSA, Vinpro and SALBA on behalf of the wine industry at the end of March.
They said that, while having the highest regard for the magnitude of the Covid-19 crisis and fully subscribe to the measures needed to ensure containment, they maintain that the ban placed on the export of bulk and packaged wine raise a significant risk towards the economic sustainability of the industry and the socio economic stability of rural communities where more than 40 000 workers and their dependents are employed on grape farms and in wineries.
They asked that wine for export be classified as an essential product and service to ensure the sustainability of the sector.
Industry recommended that licensed taverns be granted special dispensation to operate strictly as takeaway outlets – as well as allowing the sale of liquor via online platforms and lobbied government to allow beer halls to operate between 09:00 and 18:00 on weekdays and to 16:00 on Saturdays.
