Media launch on creating awareness with the view to reduce the socio-economic costs of alcohol abuse speech delivered by Deputy Minister Elizabeth Thabethe, Department of Trade and Industry Campus

Programme Director
Ladies and gentlemen

Liquor regulators in this country, particularly the National Liquor Authority, are conferred with a legislative mandate to regulate the liquor industry such that the socio-economic costs of alcohol abuse are reduced. They are also mandated to ensure that the development of the liquor industry occurs in a responsible manner and promotes an ethos of social responsibility.

This mandate can be achieved, amongst others, through the strict enforcement of the liquor legislation and the registration or licensing and monitoring of the activities of manufacturers, distributors and retailers of liquor. However, experience shows that the effective enforcement of the law alone is inadequate to address the socio-economic costs of alcohol abuse and ensure the responsible development of the industry.

Research shows that the liquor industry records an annual turnover of over R30 billion. Excise duties collected on alcoholic beverages were estimated at R4,2 billion in 2003/04. However, the social costs of alcohol-related trauma and accidents far exceed the revenue collected. Alcohol abuse is estimated to cost South Africa in excess of R9 billion per year. Given information asymmetries that characterises this industry it is in the public interest that government, through liquor regulators, intervenes in a manner that empowers the consumers and facilitates that they make informed choices.

There is a growing realisation amongst policymakers and regulators that the socio-economic challenges that are associated with alcohol abuse can also be overcome through empowerment and education of both consumers and liquor traders.

Consumers of liquor products, similarly with consumers of other products, are entitled to be aware of the effects of excessive alcohol consumption. The National Liquor Regulators' Forum, a body constituted by the National Liquor Authority of the dti and nine provincial liquor regulators have developed an education and awareness programme that aims to contribute to the reduction of the socio-economic costs of alcohol abuse.

The primary aim of the programme is to educate the industry about their legislative obligations such as complying with the prohibition to sell liquor to intoxicated persons or to sell liquor to minors or to sell liquor to unregistered traders or provide employees with liquor in lieu of remuneration, with the view to achieve voluntary compliance. On the other hand, the campaign will focus on educating the public and creating awareness about the effects of alcohol abuse.

This awareness programme is long overdue, given the risks associated with alcohol consumption. I am however heart warmed to see that liquor regulators, both at provincial and national sphere of government, as well as the industry are holding hands together in the fight against alcohol abuse.

This campaign is launched in this month, the Women's month, to create awareness of the effects of alcohol abuse on women, particularly pregnant women. I am aware that research conducted by Foundation for Alcohol Related Research (FARR) has found that De Aar, which is based in the Northern Cape was pronounced as the area with the highest incidents of Foetal Alcohol Syndrome in the world.

According to research, at any given time about five hundred thousand South Africans are suffering from Foetal Alcohol Syndrome Disorders, a medical condition or disorder that manifests in an innocent child whose mother drank alcohol during pregnancy. People living with Foetal Alcohol Syndrome Disorders have an "IQ that is low as a result of their stunted brains and, consequently, they can be easily influenced and led astray. Some of the maternal risk factors associated with Foetal Alcohol Syndrome are heavy or binge drinking, low religiosity, influence of the partner and mother in alcohol consumption, poor education, among others.

Alcohol abuse manifests in a variety of other ways. For example, alcohol abuse by workers can adversely affect their performance and productivity at the workplace. Major elements of the cost incurred by alcohol abusing workers include the reduction in productivity, earnings of workers and deaths in the workplace that impact negatively on individuals, families, companies and the economy in general.

A wide range of physical, mental and social harms are also related to excessive alcohol consumption. Most health professionals agree that alcohol adversely affects practically every organ in the human body. The far-reaching implications of alcohol abuse should not be under estimated as it threatens the stability of families and the future of our youth, influences criminal behaviour and contributes to poverty and unemployment. Alcohol abuse is also linked to car accidents and other forms of trauma, domestic violence, social ills and work related problems.

What we should therefore learn from the FAS research findings in De Aar is that alcohol abuse has the potential to devour at the social fabric of our society dictating that we identify and engage effective interventions to address this challenge. Amongst other interventions, we should make sure that every woman in De Aar and in the whole country is aware of the effects of alcohol consumption during pregnancy.

Other interventions should focus on reducing easy access to liquor for vulnerable groups such as minors and pregnant women. This may be achieved by ensuring that the so-called dop system is uprooted. Through this system women had easy access to liquor as their partners would be paid through the provision of liquor instead of wages and salaries.

It has been established that to create a competitive and enabling economic environment, effective and consistent regulation of the business environment is imperative. Furthermore, compliance with regulatory requirements boosts both the investor and inventor confidence and this in turn improves and strengthens the South African economy while at the same time, it protects consumer. Non-compliance to liquor regulation carries some harsh penalties. The penalties range from five hundred thousand to a million rands and imprisonment of up to five years.

I am aware that provinces have taken the challenge of streamlining the liquor industry seriously and they have, in their legislations and bills, suggested creative ways of ensuring that the "shebeen" industry is regulated. The regulation of this sector will also contribute to the reduction of the socio-economic costs of alcohol abuse.

Hence I call upon liquor traders to ensure that they act within the rules and but also promote a culture of social responsibility and strengthen their commitments to combat alcohol abuse. We believe that the industry can play a significant and effective role to reducing the socio-economic costs of alcohol abuse. This they can achieve by complying voluntarily with liquor legislation, promoting responsible drinking and making financial and non-financial contributions to combat alcohol abuse particularly at the retail level of this industry.

I am also pleased to hear from the industry, the role that they play and the commitments that they have made to continue to complement government in encouraging responsible trade as well as responsible drinking. I applaud the National Liquor Regulators Forum for the initiative that they have taken to raise awareness with regards to the adverse effects of alcohol abuse. I acknowledge their initiatives to engage the liquor industry and providing information and education to ensure that the objective of voluntary compliance is achieved.

Furthermore it is important that we invite women to take advantage of the services rendered by The Department of Trade and Industry and Economic Affairs Department within provinces. We are custodians of a number of programmes that promote and support the development of businesses. These programmes range from incentives and support to small businesses, particularly women-owned businesses to the encouragement and development of co-operatives.

The departments also offer a wide range of services to the consumer to ensure that the consumer is protected and receives the best quality goods and service there is. I am therefore encouraging you to utilise some of these services available so that a few years ahead, we can see a significant reduction in the costs of alcohol abuse that are perpetuated among other things by poverty and unemployment.

I call upon the industry and all relevant institutions to support this liquor awareness programme as it rolls out in various provinces. I hope and believe that if we work together we will be able to achieve our objective of reducing the socio-economic costs of alcohol abuse.

I thank you

Issued by: Department of Trade and Industry
20 August 2007