FREE STATE PROVINCE COMMENTS ON THE NATIONAL LIQUOR LEGISLATION

The revised Liquor Bill adheres to constitutional provisions through the removal of Schedule 2 which provided for default legislation in case Provinces were not ready with their own Liquor Legislation at the time the Liquor Act No.27 /1989 is repealed.

The Bill recognises constitutional competency of Provinces to regulate retail liquor distribution. The responsibilities of the Department of Trade and Industry to regulate wholesale distribution and manufacture of liquor is acknowledged.

The Bill further acknowledges the importance of cooperative governance in matters of regulation of distribution of liquor especially in relation to responsibilities of Provinces on retail distribution of liquor. Setting up of national standards and norms for regulation of retail of distribution of liquor in Chapter 2 ensures cooperative governance and uniformity on fundamental issues for implementation in Provinces. Clause 5(1) b should read "regulation of retail distribution of liquor" and not retail sale and consumption of liquor within a Province. Replacement of "retail sale" of liquor by retail distribution in clauses is proposed.

INPUTS ON CLAUSES IN THE BILL
Clauses 9, 11, 12, 13 and 14 in Chapter 2 of the Liquor Bill 2003 should be deleted as they constitute areas to be covered in the Provincial Legislation. Determination relating to undermentioned areas will create constitutional conflict if provided in National Legislation.

Restriction on sale or supply of liquor to public
Prohibition of supply of liquor to minors
Supply of liquor in excluded areas
Prohibition of drunk and disorderly behaviour
Closure of registered and other premises where it relates to retail distribution of liquor.

The National Bill should provide a clause to establish a National Liquor Authority and provide for appointment of competent people who will adjudicate on all applications for manufacture of liquor (except micro manufacture) and wholesale distribution of liquor.

There should also be provision for adequate funding of the Authority to ensure its proper functioning.

Consideration of applications for wholesale distribution and manufacture by the Minister and submission of application to the Minister exposes office of the Minister to litigation and Court challenges on decisions made.

It is suggested that the Authority established, consider all applications of National competency including imposition of conditions for registration; determination of duration for processing of application, cancellation of registration and other matters related to registration.

In Chapter 3 the following clauses require review and amendment

Clause 16 (1) b relating to qualification for registration especially exclusion of people who have been convicted within the preceding three years of any contravention of any law governing the manufacture, distribution or sales of liquor. Replacement of this clause with a provision excluding people convicted of serious crimes including rape, murder, child molestation etc. is recommended.
Clause 17 (1)(2) (a) delineating categories of registration should require Competition Commission to approve registration for manufacture of liquor with authority to distribute.
Approval of the Competition Commission should also be sought where a registered person wishes to engage in retail distribution of liquor under Provincial registration as covered in Clause 23 (2) a & b requiring Ministerial approval for crossholding.

In Chapter 4 the designation of any person as inspector, with either general or specific authority to exercise powers in terms this Act; should include officials in the SAPS.

The Bill promotes development of a responsible and sustainable industry which facilitates entry of new participants and diversification of ownership.

The Bill is praised for placing restrictions on sale of methylated spirits and other undesirables:
Manufacture and distribution of concoction.
Restriction on delivery storage and display of liquor.
Employment of minors and remuneration with alcohol.
Supply of liquor in restricted zones.

In conclusion the Bill is commended for diversification of ownership, encouragement of BEE programmes simplification of registration procedures and discouragement of alcohol abuse and other social ills as a result thereof and programmes put in place to address this.