Date: 10/04/2003
Source: Gauteng Provincial Government
Title: Moleketi: Tabling of Gauteng Liquor Bill


ADDRESS BY GAUTENG FINANCE AND ECONOMIC AFFAIRS MEC JABU MOLEKETI ON THE TABLING OF THE GAUTENG LIQUOR BILL TO THE LEGISLATURE, 10 April 2003

Honourable Speaker, honourable Premier, honourable colleagues in the Executive Council, Honourable members of the Legislature, ladies and gentlemen, it gives me great pleasure to rise on this occasion to introduce the Gauteng Liquor Bill to this House.

The purpose of the Liquor Bill is to address the socio-economic consequences of liquor in our society. It must be stated from the outset that I recognise the economic benefits of the liquor industry. Let us not forget that the previous regime used liquor regulations as a means of social control, social engineering and labour mobilisation. The previous Government passed laws that kept blacks from brewing and accessing alcohol, and the "tot" system was used by whites to pay black workers in many areas. This resulted in a different approach to each of the two different constituencies, one of the discrimination, lack of development and high levels of unemployment in black communities and one of the concentrating mass of wealth, political power and benefits in the white communities.

The consequences were countless raids, harassment, arrest, prosecutions and imprisonment of blacks. Also, it led to social breakdown, family violence, alcohol related disease, crime and accidents in poor black communities. A large illegal liquor trade emerged in townships. In order to address this legacy, the government is introducing a new policy that seeks to balance the economic benefits of liquor trade with the negative socio-economic consequences of alcohol abuse.

The Gauteng Liquor Bill 2002 aims to encourage and support the industry, and to manage and reduce the socio-economic and other costs of excessive alcohol consumption by creating an environment, which will:

* Introduce concept of self-regulation
* Promote the entry of new people in the industry
* Take steps against those who operate outside the legal framework of the Bill
* Consider the community concerns on the licensing of premises
* Correct the inequities of discrimination through empowerment of the previously disadvantaged sections of society
* Create jobs and economic growth

The Bill is intended to provide a framework for the regulation of the sale and supply of liquor in Gauteng in a comprehensive manner. It will control the sale and supply of liquor through the establishment of the Gauteng Liquor Board and local committees. Local committees of the Board will process all applications for liquor licences through a process of public participation. This will allow communities to have a crucial input into the number of liquor outlets in the surrounding areas. Liquor outlets will not be allowed near schools and places of worship.

The Bill also provides for the establishment of a Liquor Traders Association. This is an umbrella body to which all existing associations and applicants and licensees who are not members of the existing associations must belong. It introduces the important concept of self-regulation to the liquor industry. This is a far cry from the current perceptions of lawlessness in the industry. The Liquor Traders Association will act in the best interest of the communities by disciplining their members when they transgress.

The Bill will regulate the granting of different kinds of licenses and provide for the establishment of an inspectorate function. The main purpose of the inspectorate is to ensure compliance with respect to provisions of the Bill. The inspectorate will work very closely with the existing law enforcement agencies.

We are conscious and sensitive in our understanding of complexities and dire consequences presented by the Bill. A window period is provided through the Bill to afford the shebeens time to prepare so that they could become licensed establishments.

In conclusion, the Bill will bring certainty and stability into an industry that at times has seemed to be chaotic. It will also compliment the national liquor bill that will be tabled during this year.

For more information contact: Yolisa Tyantsi on (011) 355 8064 / 082 905 1147
Issued by: Department of Finance and Economic Affairs, Gauteng Provincial Government, 10 April 2003