South Africa Chamber of Commerce and Industry (Sacci) on Monday said restricting marketing on liquor will have a negative effect on the industry and the economy.
"Restrictions on marketing will not only have negative consequences for an important South African industry, but will also have a ripple effect on businesses in other areas such as the advertising, retail and hospitality industries," Sacci CEO Neren Rau said in a statement.
Rau noted that "The motivation given for the proposed ban is understood, but Sacci believes that it will not address the ills attributed to the misuse of alcohol."
Last Friday, the inter-ministerial committee (IMC) to combat alcohol and substance abuse chaired by Minister of Social Development, Ms Bathabile
Dlamini agreed to submit the draft Control of Marketing of Alcohol Beverages Bill during the next Cabinet cycle.
According to the committee, "Research has shown that the prevalence of alcohol and drug abuse among adults in South Africa [is] expanding rapidly to the destruction of the families, community and society. Government cannot afford to ignore or be quiet about it."
It noted that moves by the industry to curb harm caused by drinking alcohol, such as promoting responsible drinking, were not yielding results.
But Rau said banning alcohol would not produce the required result sought by the committee.
"Alcohol abuse is a symptom of more serious socio-economic and unemployment challenges that face the country. Alleviation of alcohol abuse will be achieved if these challenges are addressed," Rau said.
According to the World Health Organisation, we are some of the biggest drinkers in the world.
In 2009, South African government spent an estimated R7 billion to address the consequences of alcohol abuse, including vehicle injuries and alcohol-related violence.
Various departments presented reports on the effect of alcohol on society. "The department of health presented that tangible costs of alcohol in South Africa have been estimated to be close to R38 billion, while intangible costs could reach R240bn. Alcohol was also the third leading risk factor for death and disability in South Africa. According to the transport department, more than half of the country's road deaths occurred as a result of alcohol abuse.
"Around 70 percent of domestic violence has been associated with alcohol; arrestees indicated that they were under the influence of alcohol for 25 percent of weapons-related offences, 22 percent of rapes, 17 percent of murders, 14 of assault cases, and 10 percent of robberies."
“Studies in several countries established that alcohol advertising influences young people’s behaviour; it normalises drinking in many different settings, brings about positive beliefs about drinking, and encourages young people to drink alcohol sooner and in greater quantities,” argued Professor Charles Parry and colleagues, a director of the Alcohol and Drug Abuse Research Unit at the Medical Research Council writing in the South African Medical Journal.
But Rau said elements of the bill indicated a high degree of intervention in business.
"An increasingly restrictive business environment will contribute to reticence against doing business in South Africa," Rau said.
The Control of Marketing of Alcoholic Beverages Bill, though still in its earliest stages, could restrict alcohol advertising, and ban liquor-backed sport sponsorships.
About R1.7bn is spent on alcohol advertising every year.
Marketing analyst Chris Moerdyk said the mass media industry would lose about R2.6bn in (advert) revenue and a lot of people are going to lose their jobs.
A similar bill was passed into law on tobacco in 2000 which saw to the banning of tobacco advertising and increase in taxes.
The bill may well be changed under pressure from the powerful liquor lobby but it has support from a number of quarters, including the World Health Organisation, which supports the government’s plan to treat alcohol the same way as tobacco products.
Additional report from Sapa
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