NEW GAUTENG LIQUOR REGULATIONS WILL DESTROY JOBS

The new Gauteng liquor regulations threaten to turn into an elaborate work of social engineering that will further endanger job creation and business growth in Gauteng.

Gauteng MEC for Economic Development, Qedani Mahlangu has announced that the new liquor legislation to be enacted by June 2012 will require that liquor licenses will in future have to be renewed annually, subject to the new restrictions introduced by the provincial government in the form of BEE requirements.

The consequences of this will strike a hammer blow at any long term investment in the restaurant business in Gauteng, and thus on the tourism industry touted as a key part of government's solution to sky high unemployment.

What investor will consider a long term investment in a sector where there is no more than twelve months horizon?

There is nothing wrong with BEE, but consideration must be given to the constraints small businesses work under, and restaurants are in many cases small businesses par excellence, creating up to fifty jobs each.

Once again ignorance of how business operates trumps bureaucratic arrogance and second guessing.

The liquor bureaucracy needs to deal with applications timeously, but the provincial government cannot pay suppliers within thirty days in this province.

We will not create jobs like this. Think again, MEC.

Statement issued by Gavin Lewis, DA MPL, DA Gauteng Economic Development spokesman, March 5 2012

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