Bill will regulate booze trade
2003-04-09 14:37
Cape Town - Draft legislation that seeks to regulate the manufacture, distribution and sales of liquor and to set minimum national standards for the industry was tabled in parliament on Wednesday.
The controversial Liquor Bill, an earlier version of which was rejected by the Constitutional Court five years ago, also aims to remove racial discrimination in the liquor industry by promoting diversity of ownership.
It sets out national and provincial government responsibilities in line with the court's ruling that certain regulations, in particular retail licensing, are a provincial mandate.
The national government will, once the law is promulgated, have jurisdiction over manufacture and distribution, while the provinces will control the retail sector.
Provinces will have the task of determining certain criteria, including the age limits for sale to minors, provided they are not below national minimum standards.
Curbs placed on manufacturers
Provincial governments will also - through their own legislation - determine hours, days and zones for sale, and deal with liquor sales in supermarkets.
Provisions set by central government, however, will apply if a province fails to pass its own legislation.
In terms of the bill, a manufacturer will not be allowed to distribute or sell its products directly to the consumer, or hold any interests in a distribution or retail company.
Similar provisions apply for distributors and retailers alike.
Manufacturers and distributors will be expected to dispose of interests in areas that are not included in their licensed business function.
Certain exemptions may apply, such as a wine farm selling its own products on its premises.
This is expected to help open up the industry to new entrants, particularly black economic empowerment concerns.
The draft bill also prohibits the manufacture, consumption and sale of "concoctions" or alcoholic mixtures, that could harm one's health.
The measure will now be referred to the National Assembly's trade and industry committee for consideration.
- SAPA