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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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)

11. 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

12. 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

13. Thank you