The Western Cape Shebeen Association (WCSA) has successfully introduced its groundbreaking initiative Restrictive Licensing System (RLS) in the Khayelitsha township in Cape Town. The result has been as reduction of more than 50% in shebeen – related crime. The Souh African Liquor Traders Association(SALTA), through it’s president and CEO, Mr Saint Madlala, has mandated the WCSA to represent its members in all negotiations with role players.

Mr Mauritz Rossouw, the CEO of the WCSA, will meet with executives of major role players in the liquor industry, as well as Premier Helen Zille, before the end of April, to discuss the implementation of the RLS throughout the Western Cape Province. Because of its successful implementation, plans include the implementation of the RLS in other provinces in due course.

It is expected that the KZN Provincial Government will include a 6 month amnesty in its draft Liquor Act, which should be published for comment soon. Role players have welcomed the amnesty, but complained that it is much to short to allow shebeen owners to submit proper applications for liquor licences. It has been proposed that the Restrictive Licensing System(RLS), which has been successfully implemented by the Western Cape Liquor Traders Association (composed of the Western Cape Shebeen Association and the South African Liquor Traders Association). In the Khayelitsha Township, where the pilot project was implemented, shebeen related crime was reduced by more than 50%. Role players are meeting within the next two weeks to decide on a strategy to implement the RLS on a national basis.

Northern Cape MEC, John Block, reacted to speculative comments in newspapers regarding the new Liquor Act (Selected from an article in the Kathu Gazette) I am of the opinion that ill-informed perceptions of this nature should be set straight. Cognisance was taken of the numerous requests for lower licence and other fees and therefore reflected by the final set of Regulations in the form of a 50% reduction across the board of the fees as advertised for public comments. According to Mr Block, it is his intention to introduce an amendment bill in the provincial legislature as a matter of urgency to revert to the general situation that existed before the new Liquor Act came into operation, namely that on-consumption liquor establishments must close at 02:00. This process will however take some time since the provincial legislature operates in accordance with its own rules. All efforts will none the less be made to expedite the process.

The Northern Cape Liquor Act (Act 2 of 2008) came into operation on 1 April 2010. No April fool’s joke, although some liquor licence holders wish it was. It still has to be seen how strictly the Liquor Board will interpret the Act and Regulations. This can be of no comfort to current licence holders, as issues such as rezoning has been strictly enforced in provinces such as Gauteng. Some licence holders have indicated that they may challenge some sections of the Act as being unconstitutional. The main changes that affect licence holders are the following: 1. All liquor licences granted in terms of Section 22(1)(b) of the previous Liquor Act (Act No 27 of 1989) shall remain valid until 31 March 2011; 2. All licence holders must apply to have their existing licences converted to a one of the kind of licences described in Section 16 of the new Liquor Act or a licence nearest in description to their current licence. Conversion is described as having to follow the same process as when applying for a licence for the first time. A complete new application therefore has to be drafted and submitted to the Liquor Board. Each licence holder is liable for all costs incurred in order to convert, which will be the cost of a new application; 3. The trading hours have been limited to 24h00 (12pm). Any liquor sold by 24h00, must be consumed before 00h30 (1.30am); 4. Licensed premises, which are not correctly zoned for the kind of activity being carried on, will have to be rezoned. Landlords and tenants will have to negotiate the cost of such rezoning applications; 5. Licence fees have been increased substantially – a. Application fees will be R500 per application; b. Licence fees (on approval of licence) for the majority of businesses vary between R500 and R1500; c. Annual licence fees between R1500 and 2250; d. The annual licence renewal fee (payable on or before 31 December 2010), is payable in full over and above the application fee for the new licence. 6. The local authority (municipality) must lodge a report detailing the - a. Correct zoning for the premises; b. Health and Safety considerations; c. Any other matter which it may deem necessary. 7. The applicant must state what he/she’s proposed contribution to combating alcohol abuse will be; 8. The application, for a permanent or occasional licence, must be lodged per registered post or by hand at the office of the Liquor Board and not at the magistrate’s court within which jurisdiction the premises is situated. Implications of the new Liquor Act: 1. No licence holder can be certain that their current licence will be successfully converted; 2. The sale of licensed businesses may be negatively affected, as a. buyers will not be certain that the liquor licence in question will be converted; b. the demand for licensed businesses may decline in the short term, resulting in a reduced market value of such businesses; 3. Most taverns will probably fail to convert their licences, as these licences were granted for premises zoned for residential purposes and not commercial purposes; 4. Direct and indirect jobs, created by legally licensed taverns, will be lost and lead to an increase in unemployment; 5. Increased application and annual renewal fees. NOORD KAAP DRANKWET – IN WERKING VANAF 1 APRIL 2010 Ons neem die vrymoedigheid om u in kennis te stel van die inwerkingtreding van die nuwe Noord-Kaap Drankwet op 1 April 2010. Die belangrikste implikasies vir bestaande lisensiehouers, asook besighede wat beplan om aansoek te doen vir ‘n dranklisensie, is : 1. Alle dranklisensies wat kragtens Artikel 22(1)(b) van die vorige Drankwet (Wet No 27 van 1989) goedgekeur is, sal geldig bly tot 31 March 2011; 2. Alle bestaande lisensiehouers moet aansoek doen om hulle lisensies om te skakel na lisensies in terme van Artikel 16 van die nuwe Drankwet; 3. Die omskakeling van lisensies beteken dat dieselfde proses gevolg moet word asof daar vir die eerste keer vir ‘n lisensie aansoek gedoen word. ‘n Volledige nuwe aansoek moet opgestel en by die Drankraad ingedien word. Elke lisensiehouer is aanspreeklik vir alle koste van die omskakeling; 4. Die besigheidsure is beperk tot 24h00 (12nm). Enige drank wat verkoop is teen 24h00, moet teen 00h30 (1.30vm) verbruik word; 5. Gelisensieërde persele wat nie korrek soneer is vir die aktiwiteit wat nou daarop plaasvind nie, sal hersoneer moet word. Grondeienaars en huurders sal moet onderhandel oor die koste van hersoneringsaansoeke; 6. Lisensiefooie is wesenlik verhoog - a. Aansoekfooi per aansoek - R500(voorheen R200); b. Lisensiefooi(met uitreik van lisensie) vir die meeste besighede wissel tussen R500 en R1500; c. Jaarlikse hernuwinsfooie wissel tussen R1500 en 2250; d. Die jaarlikse hernuwingsfooi(betaalbaar voor of op 31 Desember 2010), is ten volle betaalbaar, addisioneel tot die fooi vir die aansoek vir die nuwe lisensie(omskakeling); 7. Die plaaslike owerheid (munisipaliteit) moet ‘n verslag indien waarin die volgende genoem word - a. Korrekte sonering vir die perseel; b. Gesondheid- en veiligheidsoorwegings; c. Enige ander aspek wat nodig geag word. 8. Die applikant moet aandui wat sy/haar bydrae gaan wees tot die bekamping van alkoholmisbruik; 9. Die aansoek, vir ‘n permanente of geleentheidslisensie, moet by die Drankraad se kantoor ingedien word per geregistreerde pos of per hand en nie meer by die landdroskantoor binne wie se jurisdiksie die perseel geleë is nie; Gevolge van die nuwe Drankwet: 1. Geen lisensiehouer kan seker wees dat sy lisensie omgeskakel gaan word nie; 2. Die meerderheid van tavernes gaan waarskynlik misluk om hul lisensies om te skakel, aangesien hul bestaande lisensies toegestaan is op persele wat vir residensiële doeleindes gesoneer was; 3. Werksgeleenthede wat direk en indirek geskep is deur wettig gelisensieërde tavernes, gaan verlore gaan en tot ‘n verhoging in werkloosheid lei; 4. Hoër aansoek- en jaarlikse fooie; 5. Die verkoop van gelisensieërde besighede mag negatief geraak word, want a. Kopers sal nie seker wees dat die aangekoopte besigheid se lisensie omgeskakel gaan word nie; b. Verkooppryse (markwaarde) kan daal, veral oor die kort termyn, omdat die aanvraag na besighede kan daal weens die onsekerheid of die lisensie omgeskakel gaan word.

A committee has been appointed to review the current Gauteng Liquor Act with a view to evaluate the Act and make suggestions on how to improve it. It is expected that the Act will be amended substantially and may even be replaced by a completely new Act. The committee will have to publish a draft policy framework. The public and all those with an interest in the liquor industry will have the chance to comment on the policy framework. It is expected that the policy framework will be published within the next few months. Once the policy framework has been finalised, the committee can proceed to draft amendments to the current Act or to draft a new Act will be drafted. The proposed amendments/new Act will also have to be published for comment and public participation in due course. We expect changes in the manner in which the annual renewal fee is calculated. Guest houses have complained bitterly in the past of being unfairly treated. Currently, a small B&B pays the same annual renewal fee as any of the largest hotels. Some role players have suggested that the annual turnover of a business be the benchmark to determine the annual renewal fee. This can easily be determined by authorities from financial statements of businesses. If you have any suggestions, we would like to hear from you.

Did you convert your 1989 Liquor Act licence to a 2003 Gauteng Liquor Act licence? The Gauteng Liquor Board has made it clear that it views non-compliance as fatal. This means that licence holders of Gauteng who did not apply to have their 1989 Liquor Act - licences converted by 1 March 2010, will not be able to legally sell liquor on their premises. Many owners of businesses who have paid the annual renewal fee disputes this. They are of the opinion that their licences are at least valid until 31 December 2010. The Liquor Board has not stated its intention with regard to the policing of those licence holders who did not covert and who is still supplying liquor as before. Do you think that non-converted licences should be valid until 31 December 2010? State your case!

What has happened to the Liquor Act after 7 months? In her State of the Province speech, Premier Helen Zille stated, in no uncertain terms, that the Provincial Government would resolve the ‘complications' around the Liquor Act and then implement it. In the pre-election period the DA recklessly led the charge to adopt the harshest possible clauses in the draft Bill including the removal of clauses, which allowed a grace period for unlicensed outlets which had not broken the law in other respects, to apply for licenses. The DA proposed that no licenses exist in any residential area and roundly criticized the ANC led government for its failure to implement the Act. But what is good for the goose must be good for the gander - seven months later citizens of the Province would be entitled to ask - what has happened to the Liquor Act? The national government has only objected to one sub-clause involving the sale of liquor on school premises. This can easily be changed through an amendment. Why has the DA changed its tune? What has become of Premier Zille's promise? Has the reckless posturing come up against the hard realities of managing a complex and difficult process? The hype generated around the closure of two or three licensed properties is no substitute for implementing the much delayed Act. Whatever the case the DA must come clean on the matter because the problem has not gone away. Alcohol abuse remains the single biggest driver of crime, road accidents, ill- health and under-performance in education and the economy. The DA has hitherto and in opposition advanced the hardest possible line and inflexibility. It now has a special responsibility to inform the public and the provincial legislature, in particular, what its plans are?! For its part the ANC will support any amendments which strengthen the Act. It will do so without indulging in the reckless posturing which characterized the pre-election interventions of the DA. But the Legislature must deal with the facts - what is being proposed by an Executive which promised immediate action to amend the Act and to implement it? Statement issued by ANC Western Cape Leader of the Opposition, Lynne Brown, December 2 2009

In the third of a four part series on liquor licensing, Liquorwise - Nationwide Liquor Licensing Specialists - This weeks’ article places the spotlight on the risk of liability of a liquor-related incident on your premises. What to do if one of your guests enjoy your hospitality so much that, in a state of intoxication(whether mild or more) - 1. Material damage is caused to (1) your property and / or (2) property of other guests? 2. Bodily damage is caused to (1) you and/ or (2) your guests? Although more of an insurance than a liquor licensing issue, Liquorwise researched answers to these questions from well-known insurance companies. 1. Material Damage - The owner will be covered for all material damage caused on the premises, whether caused to its own property or the property of guests. 2. Bodily Damage - The owner will not be covered for bodily damage caused to the owner him/herself or to the guests. The owner may not be held liable by a guest(X), if this guest(X) suffers damage caused by another guest. The person(owner or guest) who suffered the damage will be entitled to sue the person who caused the damage. Real Life Example : An intoxicated woman danced on a bar stool and fell through a glass window, suffering facial injuries. Her claim for her bodily injuries was refused, although the material damage(window) was covered by the insurance policy.. What can(should) an owner / manager do? The Liquor Act(Liquorwise summary) determines that – “ the holder of a licence or his or her agent or employee may - (1) refuse to admit any person or to sell liquor to any person; (2) request any person to leave the premises or that part; or (3) remove any person or request any police officer to remove any person who is drunk, violent or disorderly or whose presence on the licensed premises may subject the holder of the licence to prosecution under this Act”. Licence holders should, therefore, be aware of their rights and obligations in terms of the Liquor Act. For more information on the liability of a licence holder, his manager, employees and family, contact Liquorwise Consult Liquorwise – Nationwide Liquor Licensing Specialists With All The Answers To Your Liquor Licence Questions – Focusing on the hospitality industry – Adding value to your business.