ATC210525: Report of the Portfolio Committee on Agriculture, Land Reform and Rural Development on the Liquor Products Amendment Bill [B10B – 2016] (National Assembly – Section 75), dated 25 May 2021

Agriculture, Land Reform and Rural Development

Report of the Portfolio Committee on Agriculture, Land Reform and Rural Development on the Liquor Products Amendment Bill [B10B – 2016] (National Assembly – Section 75), dated 25 May 2021.

The Portfolio Committee on Agriculture, Land Reform and Rural Development (the Committee) having considered the President’s reservations on the subject matter of the Liquor Products Amendment Bill [B10B – 2016] referred to it by the National Assembly (see ATC, dated 12 June 2020) and reclassified by the Joint Tagging Mechanism (JTM) as a Section 75 Bill (see ATC, dated 25 February 2021) which pertains to customs, reports on the Bill as follows:

1. Contextual background

 

The then Minister of Agriculture, Forestry and Fisheries introduced the Liquor Products Amendment Bill [B10 – 2016]. This Bill was introduced in Parliament in 2016 to address deficiencies that have been identified by the former Department of Agriculture, Forestry and Fisheries (DAFF) in the Principal Act, the Liquor Products Act, 1989 (Act No. 60 of 1989) as amended by the Liquor Products Amendment Act, 2008 (Act No. 32 of 2008). The objectives in light of the Principal Act (Act No. 60 of 1989) that is being amended by the Bill are:

 

• To provide for control over the sale and production for sale of certain alcoholic products, the composition and properties of such products and the use of certain particulars in connection with the sale of such products;
• For the establishment of schemes;
• For control over the import and export of certain alcoholic products; and
• For matters connected therewith.

2. The Objectives of the Liquor Products Amendment Bill

 

The Bill seeks to:

• Amend the Liquor Products Act, 1989 (Act No. 60 of 1989), so as to insert certain definitions and to amend and delete others;
• Provide for the renaming and reconstitution of the Wine and Spirit Board and to limit its powers;
• Provide for requirements regarding beer, traditional African beer and other fermented beverages;
• Repeal a provision in respect of the authorisations regarding certain alcoholic products;
• Empower the Minister to designate a person to issue export certificates;
• Align certain provisions with the Constitution;
• Extend the Minister’s power to make regulations;
• Provide gender-sensitive terminology; and
• Provide for matters connected therewith.

The amended Liquor Products Amendment Bill [B10B-2016] was passed by the National Assembly on 26 June 2018 with the approval of the National Council of Provinces;and subsequently referred to the President for assent (see ATC, 26 June 2018).

3. The President’s Reservations on the Liquor Products Amendment Bill

The Liquor Products Amendment Bill [B10B-2016] (the Bill) as amended was referred back to the Portfolio Committee on Agriculture, Land Reform and Rural Development (the Committee) for consideration and report in terms of Joint Rule 203 due to reservations of the President as outlined in the ATC dated 12 June 2020 (see ATC, 12 June 2020). 

Since the Bill includes the regulation of traditional African beer in its provisions, the President was of the opinion that the Bill will affect customary practices with regard to the production, distribution and consumption of traditional African beer. Therefore, in line with Section 79 of the Constitution, he had reservations on its constitutionality as it was not referred to the National House of Traditional Leaders in terms of Section 18(1)(a) of the Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003). The President was of the view that the Bill should have been referred to the National House of Traditional Leaders (NHTL) in terms of Section 18(1)(a) of the Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003).

On 03 November 2020, the Portfolio Committee on Agriculture, Land Reform and Rural Development (the Committee) considered the President’s reservations and after listening to the advice and guidance provided by the Parliamentary Legal Advisor, Committee Content Advisor and Departmental Officials that are responsible for the Bill, deliberated and agreed with the President’s opinion. The Committee further resolved that –

1. The Joint Tagging Mechanism (JTM) must consider relooking at the tagging of the Bill in terms of Joint Rule 163(3); and
2. The Secretary to Parliament should accordingly refer the Liquor Products Amendment Bill to the NHTL in terms of Section 18(1)(a) of the Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003).

4. Referral to the National House of Traditional Leaders (NHTL)

On 25 February 2021, the Bill was reclassified by the JTM in terms of Joint Rule 163 (3), as a Section 75 Billpertaining to customary law or customs of traditional communities(see ATC, 25 February 2021). Subsequently the remitted Liquor Products Amendment Bill (remitted Bill) was referred to the NHTL in accordance with Section 18 (1) of the Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003) (TLGFA)on 26 February 2021 (see ATC, 26 February 2021).

In response to the s 18 of the TLGFA referral and the remitted Bill, the NHTL submitted that the traditional African beer should not be regulated in terms of the Liquor Products Amendment Bill as it will create confusion in traditional communities. It further submitted that traditional communities use different ingredients in preparing their own traditional beer and for this reason,traditional African beer should be excluded from the Bill.

5. Committee decision

5.1 The Committee reports to the National Assembly that the procedural defect on which the President expressed a reservation, has been corrected by way of obtaining inputs on theremitted Bill [B10B - 2016] and referred it to the National House of Traditional Leaders (NHTL) in terms of Section 18(1)(a) of the Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003).

5.2. The Committee considered the submission from the NHTL and further received responses to the inputs from the Parliamentary Legal Advisor; and the Department of Agriculture, Land Reform and Rural Development, headed by the sponsor of the Bill, the Minister of Agriculture, Land Reform and Rural Developmentwhonow takes responsibility for the introducedBill and administers related legislation.

5.3. The Committee was advised by the Parliamentary Legal Advisor and also took note of the Department’s inputs. Thereafter, the Committee concluded that the concerns raised by the NHTL are sufficiently catered for in the Bill, especially as the principal Act being amended, makes it plainly clearthat itregulatesliquor products that are produced for sale wherein, if the amendment is passed, will include thetraditional African beer produced for sale or commercial purposes,excluding that which is madefor personal drinking purposes and cultural use.

5.4. Where liquor products including traditional African beer, are sold or produced for commercial purposes; the Committee further recognises the importance of regulation in safeguarding human health and safety; and also to control and prevent the proliferation of the production for sale, of illegal liquor products.  

6. Committee recommendations

The Committee makes the following recommendations to the National Assembly:

6.1. The Committeeidentified a referencing error on clause 1(l) of the remitted Bill ([B10B - 2016] where the definition of traditional African beer was referenced as a product that meets the requirements referred to in section 6C of the Bill. The correct reference should be section 6B as section 6C refers to requirements for other fermented beverage. In this regard, as the amendment has no impact on the subject of the remitted Bill, the Committee recommends that the editorial error be corrected by replacing 6C with 6B on clause 1(l) of the remitted Bill before assent by the President.

6.2. With the correction of the referencing error as mentioned on 6.1 above, the Committee recommendsthe approval of the remitted Bill in its current form in terms of Joint Rule 203(3)(a) and Joint Rule 205.

6.3. The Committee further recommendsthat the Bill be referred to the National Council of Provinces in terms of Joint Rule 205(1)(b)(i).

 

Report to be considered.