Question NW2447 to the Minister of Trade and Industry

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02 July 2015 - NW2447

Profile picture: Macpherson, Mr DW

Macpherson, Mr DW to ask the Minister of Trade and Industry

(1)With regard to the published Liquor Policy Review, has his department conducted a regulatory impact assessment to ascertain what the cost to the economy would be in terms of job losses should the specified policy be implemented;


(1) The initial Regulatory Impact Assessment (RIA) was conducted to inform the liquor policy review process, and as the policy consultation process continues, assessment continues. RIA serves as an internal tool for government policy development process, and assessment of the cost to the economy is a component of the RIA process. The final RIA report will as submitted with the final liquor policy review document to Cabinet as per process, and the Liquor Amendment Bill will be introduced into Parliament thereafter.

(2)(a) Legal consideration has been applied to all proposals that are made in the liquor policy review document that has been published for public consultation. The proposal regarding suspension or revocation of a trading licence is intended to give the powers to effectively enforce conditions of the licence as per section 13 of the Liquor Act. Suspension or revocation of a licence will be an option available after all remedies within the Act, such as compliance notice, have been exhausted to achieve compliance.

(b)(i) No amendment will be made to the Broad-Based Black Economic Empowerment Amendment Act, Act 53 of 2003 as there is no need for such amendment.

(ii) No amendment will be made to the Broad Based Black Economic Empowerment Act, Act 46 of 2013 as there is no need for such an amendment. There is a need for the liquor legislation to be amended to empower authorities to enforce adherence to the Broad-Based Black Economic Empowerment Amendment Act, and its codes, whatever the form.

(3) The draft policy has taken into consideration the Constitutional Court judgement where the dti acquired the exclusive regulation competence over macro manufacturing and distribution of liquor, while Provinces hold the regulation competence over micro manufacturing and retail sale of liquor. The Liquor Act provides for norms and standards in the regulation of liquor for harmonisation. This harmonisation is achieved through co-operative governance established through the National Liquor Policy Council comprising the Minister and the MECs who legitimately formulate such standards. The norms and standards were adopted in line with the mandate and is within the bounds of the Constitution. The provinces remain responsible for issuance of licences for micro manufacturers and retail sale.

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