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Liquor bill deliberations postponed

22nd May 2003

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The controversial Liquor Bill, which seeks to regulate the manufacture, distribution and sale of alcohol, is to be re-worked following sharp criticism from industry players.

National Assembly trade and industry committee chairman Dr Rob Davies said yesterday deliberations on the bill had been postponed to allow further consultation.

Government and business would hold further talks on various aspects in the bill, including the "three-tier" structure proposed for the industry.

"It will now be subject to further engagement between government and role-players," he said.

The controversial measure, an earlier version of which was rejected by the Constitutional Court five years ago, has faced sharp criticism from the industry and competition authorities since its tabling in Parliament last month.

Of particular concern are provisions outlawing cross-ownership between the manufacture, distribution and retail sectors, and the extensive discretionary powers accorded to the minister of trade and industry.

In terms of the bill, a manufacturer will not be permitted to distribute or sell its products directly to the consumer, or hold any interests in a distribution or retail company.

Similar provisions apply for both distributors and retailers.

Manufacturers and distributors will have to sell interests in areas that are not included in their licensed business function.

The bill also aims to set out minimum standards for the industry.

Davies said the department of trade and industry had indicated the consultations and re-drafting could take about three weeks.

He said the committee was also looking at ways of bringing shebeens, currently estimated to number around 200 000, into the regulatory net, while guarding against a proliferation of liquor outlets.

However, this was ultimately a provincial government responsibility, he said.

According to the bill, provinces will be responsible for regulating the retail sector, and will be tasked with determining various criteria, including the age limits for sale to minors, provided they are not below national minimum standards.

Provincial governments will also, through their own legislation, determine hours, days and zones for sale, and deal with liquor sales in supermarkets. – Sapa.
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