Alcohol industry welcomes a call by SA Medical Research Council to review alcohol ban

Media Statement

Sunday, 2 August 2020 — The alcohol industry welcomed the call by the South African Medical Research Council (SAMRC) for Government to start preparing for the lifting of the ban on the formal sale of alcohol. The decision recognises that there was no immediate severe pressure on hospital beds set aside for the treatment of COVID-19 patients.

The call was made by SAMRC President Dr Glenda Gray and Prof Charles Parry, Director of Alcohol, Tobacco and other Drugs Research Unit of the SAMRC during an interview with Michael Avery of Business Day TV on Friday, 31 July.Dr Gray and Prof Parry acknowledged that the anticipated excessive pressure on hospitals as a result of a surge in COVID-19 infection was not materializing.

Last week, Gauteng Premier David Makhura reported a 57% occupation rate with 5 500 patients using the 9 576 public hospital beds available. Western Cape Premier Alan Winde reported a 71% occupancy of the hospital beds available in the Cape Town Metro. The province’s infections appear to have peaked.
Prof Parry was asked if the decision to ban alcohol sales to free up hospital beds was ill-advised – given the impact that the ban has on the jobs and excise tax collection – while not hitting the maximum use of those beds?
“We now need to start looking at planning for lifting of the temporary ban on alcohol sales. And we need to look at what measures, so that we can perhaps start planning for them in a few weeks’ time, maybe even talking about lifting the ban on alcohol sales, particularly if you say that around the country there is not so much pressure around the hospital beds,” answered Prof Parry, further stating the need to also consider staff capacity needed to manage COVID-19 patients.

Dr Gray, also a member of the Ministerial Advisory Council advising Health Minister on COVID19 response, said, “My recommendation to government is to be nimble…We have achieved the impact by having a curfew and prohibition on alcohol. We have achieved what we needed. Now we need to address other issues. We have achieved the lives, now we need to look at livelihoods.”
The prohibition of alcohol sales is having a devastating effect on the livelihood, with more than 100 000 of the almost one million jobs supported by the alcohol industry value chain having been lost in the first phase of the ban at lockdown level 5 and 4.

“Nineteen days since that economically devastating decision to ban alcohol with immediate effect, the SAMRC is advising government differently. If the Government is to be consistent in its approach to the ban, it needs to urgently open talks for the orderly reopening of alcohol trade to prevent further losses of jobs and revenue for both the state and business,” said Sibani Mngadi, Spokesperson for the alcohol industry.
More than R19 billion in revenue and R3.4 billion in excise tax to Government was lost during the first phase of the ban of alcohol sales. Furthermore, the industry has requested the Ministry of Finance to defer the payment of a further R5 billion currently due to SA Revenue Services until the ban on alcohol sales has been lifted.

 

The South African alcohol industry includes but is not limited to the National Liquor Traders Council, South African Liquor Brandowners Association (SALBA), the Beer Association of South Africa (BASA), Vinpro, the National Liquor Traders Council, and manufacturers.
Issued by FTI Consulting on behalf of the Liquor Industry. For interviews, or further information, please contact: salba@fticonsulting.com