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The Beer Association of South Africa (BASA) has warned that a third alcohol ban in the country, as part of an effort to ease strain on the healthcare system and medical facilities, will lead to further job losses and increase illicit sales.
President Cyril Ramaphosa banned the sale of alcohol in a speech to the nation on Monday night, as part of a move towards a tight lockdown level 3, to curb a second wave of the Covid-19 pandemic.
“One of the most difficult areas of regulation relates to the sale of alcohol,” said President Ramaphosa. “The alcoholic beverage industry is a major employer and a major contributor to our economy. Our priority at this time, however, must be saving lives, ”he said.
The president said that alcohol consumption has once again increased the number of trauma cases in hospitals.
It is worrying that hospitals are reporting that they are at or near full capacity, while healthcare workers are exhausted and infected in greater numbers. “They are almost at the limit,” Ramaphosa said.
“All for our actions and for not taking responsibility. Unless we act now and act decisively … thousands more will lose their lives. “
On December 28, 7,458 new cases were registered, bringing the accumulated total since the beginning of the pandemic to 1,011,871. The country has reported 27,071 deaths from the virus, according to the latest data from the Health Department.
“We have let down our guard and sadly now we are paying the price,” Ramaphosa said. “We can only weather this storm if we immediately and fundamentally change our way of thinking.”
Alcohol companies respond
BASA said in a statement that it recognizes the severity of the second wave of Covid-19 and, with it, the immense pressure on the healthcare system. “Given the increase in infections, BASA understands the need for urgent interventions to stabilize the health system.”
“However, we do not agree with the general prohibition of alcohol announced by the president in his speech.”
He noted that the previous two alcohol bans had a devastating impact on the beer industry, with 7,400 jobs lost, R14.2 billion in lost sales revenue, and 30% of breweries were forced to close. Their doors.
Furthermore, the government lost R7.4 billion in taxes and excise duties that could have been used in the fight against Covid-19. “This third ban will cause incalculable economic damage to the beer sector and the 415,000 livelihoods it supports.”
BASA said it is concerned that another ban will further entrench the illicit alcohol trade network as consumers seek ways around the ban.
Already, before Covid-19, the World Health Organization had estimated that a quarter (24%) of all alcohol consumed in South Africa was sold illicitly, he said.
“The increase in the illicit manufacture, trade and consumption of alcohol caused by prohibition poses serious health risks as health and safety regulations are ignored.
“Methanol poisoning can cause blindness, liver damage and even death. An increase in illicit trade also means that the taxes and duties that generally arise from the legitimate sale of alcohol are lost in the fiscus.
Rather than a blanket ban, BASA said the government needs to regulate sensibly and make sure those regulations are followed. There is much that industry and government can do to encourage moderate and responsible consumption and to penalize those who break the rules.
“BASA believes that a third alcohol ban will do more harm than good. Therefore, we will continue to engage with the government on what must be done to save lives and livelihoods as we work together to defeat Covid-19, “he said.
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