Liquor licence moratorium in Gauteng stays in place

Monday, 12 September, 2011
Danie Cronjé, Cluver Markotter Incorporated
In a judgement which shocked the liquor industry the Gauteng High Court refused to set aside the moratorium on the issuing of liquor licences implemented by the Gauteng MEC of Finance and Economic Affairs.
The MEC placed a moratorium on the lodgement of applications for permanent or temporary liquor licences and the issuing of such licences for a period of 6 months from the 8th of August.

Role players in the liquor industry brought an urgent court application to have the decision set aside on the basis that the MEC did not have the authority to do so as it meant that she suspended the Gauteng Liquor Act.

However, Judge Matojane dismissed the application on the basis that lifting the moratorium would only “exacerbate an already dysfunctional system of liquor licensing without giving applicants immediate meaningful relief”.

According to Danie Cronjé, the director of Liquor Law Services of Cluver Markotter Incorporated the judgement is bad news for the hospitality and liquor industry.

It means that new restaurants, liquor stores and hotels which have already applied for liquor licences would now have to wait even longer to get them. New businesses cannot apply for licences during the moratorium.

Businesses can also no longer apply for temporary licences to operate while waiting for their permanent licences or for special events such as wine festivals.

For updates on liquor law related issues follow Danie Cronjé on Twitter (@Danie_Cronje).
Danie Cronjé, the Director of Liquor Law Services at Cluver Markotter Incorporated
Danie Cronjé, the Director of Liquor Law Services at Cluver Markotter Incorporated

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