Western Cape turns heat up on government to lift booze ban

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Pressure is mounting on the government to lift the ban on the sale of alcohol and to allow for more economic activity to prevent huge job losses.

The DA-led Western Cape provincial government took a firm stance at the weekend, stating that domestic alcohol sales should be allowed immediately, “with smart recommendations in place”.

“These positions have been taken with a view to reducing the impact of a second, equally dangerous pandemic: unemployment. We will now engage the national government on these positions,” said Western Cape premier Alan Winde.

“The impact of this temporary ban is not just felt in our agricultural and farming communities but also in our tourism and hospitality sector,” he said.

Winde said restaurants relied on alcohol sales to remain profitable. “If properly licensed establishments are not allowed to sell alcohol on site, they will not be able to remain financially viable.”

The liquor industry, which contributes 3% to SA’s GDP and is responsible for more than 1-million jobs, was dealt a heavy blow in July when the government again banned alcohol sales, arguing that this was necessary to lower the alcohol-related trauma load on hospitals and free up desperately needed resources for Covid-19 patients.

This was the second such ban. The first one, which came into force when SA entered the strict lockdown at the end of March, lasted about 10 weeks, costing the industry R18bn in lost revenue and 100,000 jobs. The industry is worth about R140bn.

Groups representing players in the liquor industry have been engaging with the department of trade & industry and pleading with President Cyril Ramaphosa to lift the ban, arguing that the industry’s contribution to the economy far outweighs the harm it causes due to irresponsible drinking. But their efforts have been in vain so far.

Recently, scientists advising the government and health minister Zweli Mkhize on the Covid-19 response suggested the ban be lifted as it has achieved its objective.

Winde said for as long as the Western Cape can assure access to health facilities for all Covid-19 patients, all businesses should be allowed to open safely provided they follow clear health guidelines designed to slow the spread of Covid-19.

The ban also threatens the future of the wine industry, a crucial sector and jobs driver in the Western Cape economy. Stats SA food and beverage data for April and May shows a decline in revenue for the ...
10 Aug 2020 1PM English South Africa Business News · News

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