SIBANI MNGADI: A body blow to the liquor industry

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Granting the health minister the power to consider restrictions to the sale of alcohol over and above national liquor legislation would be unconstitutional now that the national state of disaster has been lifted

describe the health regulations as “inconsistent, incoherent and illogical” and argued that they are “not conducive for economic recovery”.

The regulations empower the health minister to “share advice” with his cabinet colleagues relating “to the sale, dispensing and consumption of alcohol”. It is unclear why a health minister would require regulations to share information with cabinet, nor why information regarding alcohol sales and consumption are regarded as information that would need to be shared.

The lockdown bans and restrictions on business activity caused irreparable damage to the economy. It was a uniquely SA government approach that led to significant job losses and the closure of some businesses as the operations of restaurants and hospitality establishments became financially unviable once alcohol was removed from the menu.

The economic impact of the illicit trade has also been disastrous. For example, in 2020 the SA Revenue Service lost R11.3bn to the illicit alcohol trade — enough to pay for more than 2-million child support grants for a year, or put 34,000 additional police officers on the streets.

 

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