Amendments to the Liquor Bill, 2003 Select Committee on Economic and Foreign Affairs Cape Town 4 August 2003

Objective of the presentation To provide a high-level overview of the amendments to the Liquor Bill To raise possible implications for provincial legislation To suggest possible issues for consideration in provincial legislation

Background Public hearings on Bill in May 2003 Concerns raised about Implementation of three-tier system; Technical matters; Constitutionality; and Regulation of retail The dti given opportunity to review Bill and to consult with industry

The process to date A series of meetings held with some industry players resulting in broad agreement Amendments effected and circulated to parties that made submission for further input Workshop held on 17 July to discuss proposed amendments Further changes made pursuant to comments received Amendments submitted to Committees on 1 August 2003

Key amendments Schedule 2 removed and replaced with transitional measures in Schedule 1 Chapter 2 revised to remove references to retailers and to clarify national liquor policy Chapter 3 and 4 replaced with one chapter on registration and licensing of manufacturers and distributors; The evaluation and registration process was outlined in much more detail, giving a greater degree of certainty

Chapter 2 National Liquor Policy Liquor Bill, 2003 No trade if not registered No trade in concoctions No sale to minors No sale/supply near schools No employment of minors, if selling No violence/drunkenness on registered premises No sale to persons under influence No consumption in certain areas Amended Liquor Bill, 2003 Regulation of manufacture and distribution of liquor Regulation of methylated spirits Prohibition on concoctions and additives No employment of minors and remuneration with alcohol Restrictions on advertising Prohibition on supply to minors

Chapter 3 Registration of manufacturers and distributors Provides for registration of manufacturer or distributor or both Registration may be refused if applicant is disqualified If not disqualified, Minister evaluates according to following criteria: Commitments made in terms of BEE Commitments made to combat alcohol abuse Extent to which proposed registration will materially restrict or promote: New entry, job creation, diversity of ownership, efficiency, exports, competition in the industry Minister may attach conditions in respect of above

Chapter 3 Registration of manufacturers and distributors Notification of manufacturer or distributor of any material changes to registration – may trigger review of conditions by Minister After issuance of registration, Minister may review conditions of license or add new conditions, under specified circumstances Minister may cancel registration under specified circumstances

Schedule 1 Transitional Provisions Liquor Act repealed, but implementation in each province by publication after notification to Minister from province Norms and standards for provincial laws set out Conversion of existing licenses: Existing licenses and Section 51 exemptions converted into either manufacturer or distributor registration within 90 days upon election from license holder After 12 months, registrant must initiate a review by Minister (in terms of Chapter 3) Minister may attach conditions

Implications for provincial laws Norms and standards for provincial laws Consistency with national law Regulation and registration of micro-manufacture, retail and consumption of liquor Enforcement mechanisms Reasonable transitional protection of rights No norms regarding minimum distances from schools or restrictions regarding public consumption or consumption on sports grounds (provincial discretion)

Way forward Task Team with provincial representatives and dti established to develop guidelines for provincial legislation iro norms and standards Task Team to consider additional issues that emerge from this workshop

Key issues for discussion Great concern at public hearings about retail normalization and appropriate regulation; Need to balance simplicity with transparency and community input into licenses Mechanisms to encourage formalization of illegal retailers

Thank you