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By Sakhiseni Nxumalo 
2h ago
Durban – The liquor industry says the government should reconsider a total ban on the sale of alcohol and at least allow off-site alcohol sales and consumption to continue.
This comes after President Cyril Ramaphosa announced on Monday that the cabinet had decided to introduce tight level 3 lockdown restrictions and had banned the sale of alcohol for the next 14 days due to the increase in Covid-19 cases.
According to published regulations, the sale, dispensing and distribution of liquor for consumption outside and on the site is prohibited.
Ramaphosa said binge drinking was a major factor in the rise in hospital trauma cases.
In reaction to the announcement, the industry said that if the government allowed the sale of alcohol for consumption off-site, this would allow the outlets to function and prevent potential job losses.
The Beer Association of South Africa (Basa) said that given the rise in infections, they understood the need for urgent interventions, but did not agree to a total ban.
Basa CEO Patricia Pillay said the organization was concerned that the previous two alcohol bans had a devastating impact on the beer industry.
According to Pillay, 7,400 jobs and R14.2 billion in sales revenue were lost and 30% of breweries were forced to close their doors. He said 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.”
He added that the body was concerned that the ban would entrench the illicit trade in alcohol. The association said the government must regulate sensibly and ensure that those regulations are followed.
“There is a lot that industry and government can do to encourage moderate and responsible consumption and to sanction those who break the rules. We believe that a third alcohol ban will do more harm than good, ”added Pillay.
Jabulani “Mjay” Nzama, owner of Eyadini Lounge at uMlazi, said the business had recovered after the first full shutdown, however the full shutdown would have a significant impact.
Nzama said the president should speak to the banking industry on behalf of the companies in the alcohol industry.
“Banks want your money, regardless of whether we are operating. That is unfair for us as companies, and we end up without paying them, which generates great interest and the closing of deals, “he said. He said that due to the move to level 3, more than 20 employees had been laid off, including security and car guards, cleaners, waiters and packers.
“Only a few restaurant employees are working, they (the other workers) will have no income and their families will go hungry.”
South African Breweries (SAB) said it was extremely concerned about the rapid resurgence and spread of Covid19, but did not agree with the alcohol ban.
“Our industry supports more than a million livelihoods along our value chain, in agriculture, retail, manufacturing, logistics and many SMEs whose livelihoods are at stake due to the suspension of trade. of alcohol ”.
“SAB does not believe that a total ban on the sale of alcohol is a sustainable approach, as seen with the last two bans. The unintended consequences of such actions are dire, from job losses, tax losses, illicit trade and the looting of alcohol shops, ”he said.
Economist Dawie Roodt said that while the economic ramifications appeared to have been considered, the liquor stores could have been allowed to operate for off-site consumption.
“People should at least have been allowed to drink in their homes. That way, companies wouldn’t have to shut down and manufacturers would operate and retain their staff.
“People are still going to drink, it’s just that they will buy it at a high price illegally, which will result in a huge loss of tax revenue.”
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