OPEN LETTER to the Presidency from:
National Liquor Traders Council (NLTC)
Liquor Traders Association of South Africa (LTASA)
CC Dr Nkosazana Dlamini-Zuma: Minister of COGTA, and Mr. Ebrahim Patel: Minister of Trade, Industry and Competition
1. Introduction
1.1. Despite your continued ignorance of our previous letters we still write this letter as a coalition of liquor traders in South Africa comprising of National Liquor Traders Council (NLTC) and Liquor Traders Association of South Africa (LTASA). We are a coalition of liquor traders representing a very high proportion of township based (small businesses) taverns and bottle stores as well as independently owned retail liquor traders throughout South Africa. Our purpose and that of our members to ensure that the ban on alcohol sales is lifted as a matter of urgency to safeguard the dire economic situation we find ourselves in.
1.2. As liquor traders and proud citizens of this country, we hold our heads high, and are proud of our commitment in partnering with government in fighting against the Covid-19 pandemic. We have always sought to engage with government to find common ground for the greater good of the lives our people as well as the livelihoods of those in the alcohol industry. It is in this spirit that we present to you these submissions for your consideration.
2. Devastating Economic Impact on the continued ban on liquor sale
2.1. On the whole, the coalition of liquor traders employs well over 282,000 workers: Taverns (250,000), bottle stores (18,000) and Independent Liquor Traders (14,000).
2.2. We operate a combined 39,900 liquor outlets: Taverns (34,500), Bottle Stores (4,000), and Retail Stores (1,400).
2.3. Our members have now reached their last mile in terms of survival and failure to fully open their businesses in the next 7 days will render their existence as part of history. We fear that over 15,000 taverns will not be able to operate should something not be done to reverse the current ban. Almost 500 independent liquor traders operating as bottle stores have indicated that they will not be able to meet their rental obligations come month end January and this means their lease agreement will be terminated and licence to trade ground to a halt with over 3,000 jobs at stake in the bottle store space alone.
2.4. Our members have given their full support to the health protocols and social distancing measures required by our government, and have strictly complied with the same; and there have been and continue to be severe economic (financial) costs to the employees of our members [job losses and reductions in salaries and wages] and to our members, not only due to the cost of compliance with such health protocols and social distancing measures but also due to the restrictions imposed on trading, ranging since March last year from total prohibitions on trading to the current alcohol ban. Our members are struggling to survive, and they face an uncertain future under the current status quo.
2.5. Although we welcome the governments stated objective of saving lives, we have serious concerns that the issue of livelihoods is not being taken into consideration, and make these submissions in order to convey these concerns to you.
3. Our request
3.1. Allow for the resumption of liquor sales on or before the 1st February 2021 to avert a township economic catastrophe that the ban is slowly leading us
3.2. UIF TERS support for the period in which the ban is place. Our members are not able to fulfil their financial obligations as a result of non-trading caused by the ban and it is our expectation that government steps in to cover for the salaries of our workers
3.3. Tavern financial relief package to the value of R20,000 to cushion against the blow of the alcohol ban
3.4. Moratorium on ALL liquor licence fee renewals including distribution licences
4. Conclusion and Concessions
4.1. For the reasons set out above, we respectfully urge our government to immediately consider allowing sale of liquor on an off-premise basis.
4.2. As part of our concession and alcohol harm reduction agenda adopted by the liquor traders, we will play our part in stemming the tide against the spread of Covid-19 in our liquor trade and communities we operate in and advocate for responsible consumption of liquor through the programmes we have developed to deal with the following societal ills:
4.2.1. Responsible Trading and Consumption of Liquor
4.2.2. Drink and Driving Initiatives
4.2.3. Tavern Dialogues on Gender Based Violence
4.2.4. Covid-19 Trader Compliance Initiatives
4.2.5. Underage Drinking
Sincerely,
Lucky Ntimane
Convener: Liquor Trader Formations
Sean Robinson
President: Liquor Trader Associations of South Africa