SAB takes on Cape over stricter licences

The law, which provincial policy makers say is intended to make it harder to get a licence to serve alcohol, is just the latest point of disagreement in a longstanding row between SAB and the provincial administration.

The 2008 Western Cape Liquor Law Amendment Bill, which comes into force in September, would only worsen the province's already unnecessarily tight regime that limits the granting of licences to businesses serving alcohol, the country's largest brewer said.

Going underground

"It just doesn't make sense that licensing can be that restrictive and yet this new legislation is intended to make it even more difficult for tavern owners to become licensed," SAB MD Norman Adami said on Thursday, 17 February 2011.

"I don't think restrictive licensing is going to limit alcohol abuse. It might aggravate it."

SAB says restricting licences drives alcohol drinking into illegal and unregulated areas and makes it less subject to control.

Brandhouse, another seller of alcoholic drinks, which along with SAB pushes a responsible drinking message, also warns against a too-strict approach.

"An inappropriate approach to alcohol may result in growth in black market trade in smuggled and counterfeit beverage alcohol and often exacerbates the production of alcohol of dubious quality in an underground environment," Asyia Sheik, Brandhouse's spokeswoman, said.

Authorities, citing the province's high rates of alcohol abuse and foetal alcohol syndrome, say they want to root out illegal shebeens, especially those in residential areas, and encourage drinking in regulated, commercial areas.

Looking for balance

The Western Cape's MEC for finance, economic development and tourism, Alan Winde, was critical of SAB's position last week.

"Their argument is profit and sell as much as possible," Winde said.

He said the number of licensed sellers would fall.

"There is no doubt that in this process there is going to be a shrinkage with regard to outlets.

"If we see it has a negative impact on the economy, then we have to deal with that. It is a balance," he said.

Alcohol issues

Alcohol abuse is a problem. Mortuary statistics from 2002 cited by the Medical Research Council show that in 53% of all deaths by nonnatural causes in Cape Town, the deceased had a blood alcohol concentration of 0,05g/100ml - a rate that is above the national average of 46%.

The Cape Town-based Foundation for Alcohol Related Research cites figures showing that, while the average prevalence of foetal alcohol syndrome in high- income countries has been estimated at 0,97/1000, rates reported from Wellington in the Western Cape have ranged between 40,5 and 54 per 1000.

Not enough licences

SAB said there were too few licences.

In the whole province, there were only 420 licensed shebeens or taverns, Adami said. Winde, who did not challenge that figure, said the province assumed there to be between 25 000 and 30 000 illegally operating shebeens.

"One big problem is that these shebeens' operations carry on late into the night next to homes where kids are trying to prepare for exams and so on, let alone other, crime-related considerations," Winde said.

The new rules will require applicants to get local community support for any licence.

The province is also looking to encourage licensed outlets to set up away from homes.

"The apartheid regime couldn't drive shebeens out of the market.

"What makes us think a democracy is going to be able to?" asked SAB's strategy manager, Harald Harvey.

Source: Business Day