SABMiller in froth over Liquor Bill
May 23, 2003
By Ann Crotty
Johannesburg - "If the government ignores the realities [of the beer market] we'll take it to the constitutional court," Graham Mackay, SABMiller's chief executive, said yesterday at the release of the group's financial 2003 results.
Mackay was responding to questions on the Liquor Bill, which was to pass into law this week but has been put on hold for four weeks, while the various interested parties attempt to iron out their differences with the government.
He described the bill as "disappointing" and noted that "despite reassurances from government, the same hobby horse had re-emerged" in this bill as had given rise to concerns in the 1998 Liquor Bill that was abandoned after input from the constitutional court.
The "hobby horses" are the government's objectives of creating a three-tier structure within the liquor industry and in the process imposing black economic empowerment.
In addition, SABMiller has expressed its concern that the bill seeks to regulate competition issues which should be left to the competition authorities.
Mackay said he welcomed the decision to postpone the introduction of the new legislation and he hoped the postponement "would result in something a great deal more sane than the situation at present"
.
He described the bill as it stands as "totally impractical and constitutionally challengeable", and said the three-tier system outlined by the legislation was "unworkable".
Mackay pointed out that the Liquor Bill had been rebuffed in the constitutional court before. He added: "We have faith in the constitutional process."
In its submission on the bill, SAB expressed its concern that it was only made available to the public three working days before the deadline for submissions.
"Given the almost five years that it has taken to develop the new legislation, we believe that sufficient time should be provided for public comment," it said.
The four-week postponement will give the multibillion-rand industry an opportunity to persuade the government of its concerns, including the apparently unbounded discretion that is granted to the minister of trade and industry.
Although the department of trade and industry has stressed it was committed to discussion with industry players, it has also stressed it was determined to introduce the three-tier system.
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