SACCI COMMENT ON LICENSING OF BUSINESSES BILL
The South African Chamber of Commerce and Industry (SACCI) is concerned by the DTIs Licensing of Businesses Bill as its current wording will impair economic activity, especially within the Small to Medium Enterprise (SME) sector. SACCI submitted a detailed mandated comment and extends an invitation to the Minister to discuss the issues of concern. Although the Bill officially seeks promote the right to freedom of trade and the sustainability of businesses, the additional layer of registration bureaucracy and the host of interventionist measures will hurt business confidence and job creation potential in the most vulnerable segment of the business community.
Two brief general comments on the Bill convey some of the concerns SACCI has with the document.
First, the Bill seeks to close all businesses that sell counterfeit goods or contravene immigration laws, amongst others. It is highly doubtful whether the cost imposed by the legislation is proportional to the damages it tries to mitigate. Less expansive initiatives to counter the problem should first be interrogated by way of a quantitative study like a Regulatory Impact Assessment (RIA). It should be noted that there are existing mechanisms to enforce compliance in the very legislation which the Bill seeks to enforce, which makes the Bill largely redundant.
Second, the Bill provides broad powers to a variety of government officials (SAPS and Metro Police amongst others) to enter businesses premises, investigate the premises, order the license holder to attend an interrogation and the power to confiscate property. Whereas similar powers in for example, the Counterfeit Goods Act are balanced with protection measures to business owners from arbitrary use of authority, the current Bill has no such mechanisms.
SACCI trusts that the public comments from across civil society and the South African business community will translate to a more pragmatic final piece of legislation.
Statement issued by Neren Rau CEO of SACCI, April 24 2013
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