Existing liquor traders in Limpopo seeking to halt the implementation of the provincial Liquor Act have been given a temporary reprieve by the High Court in Polokwane.
Liquor traders in the province approached the High Court to challenge the Limpopo Department of Economic Development, Environment & Tourism’s implementation of the Liquor Act no 5 of 2009 as well as its associated regulations.
This as the changes, which came into effect as of August 1, stipulated that liquor outlets and nightlife facilities that traded with alcohol would only be allowed to operate up to midnight, whereas the Liquor Act of 1989 allowed sales up to 2am.
In addition to the midnight curfew, licence renewals would also increase from R100 to R750.
Sello Mokwana, the deputy chairperson of the Sekhukhune Liquor Traders Association, which launched the challenge with the support of other associations and the provincial EFF, said the group was yet to receive a copy of the full judgment but would be consulting with their legal representatives to acquire it.
Mokwana said according to the information at their disposal regarding the judgment, they had been given a “bitter-sweet relief”.
He said from what they understood, existing liquor traders would be allowed to continue with the old regulations up until July 2024; however, new applicants would be operating under the new amendments.
Concerns were also raised about how old and new traders would be identified by the relevant authorities.
“We are happy with the temporary relief, but the truth of the matter is that it is a short relief. We want a permanent solution because this uncertainty is negatively affecting our livelihoods and our ability to provide for our families.
“We’re also worried about the impact in the long run on the GDP and other sectors, hence we will be consulting on the way forward because we are equally dismayed by the type of communication issued by the department.”
According to the deputy chairperson, although the court had addressed the issue of halting the implementation of the act, they had not addressed the insistence for a review of the act to be conducted.
For its part, however, the department stressed that it welcomed the judgment as it dismissed the urgent application and had not reversed any of the regulations within the act.
Furthermore, no changes were effected to the licence renewal pricing outlined by the act as well as the insistence that all new liquor applicants would fully abide by the act.
In addition to that, the department highlighted that “the court did not find any wrongdoing by the department on processes leading up to the implementation phase”.
The department has since issued a notice for current licence holders to convert to the new act by July 31, 2024, in a bid to provide traders with at least 12 months’ reprieve.
Failure to do so would, as a result, lead to existing licence holders’ current licences lapsing.
Departmental spokesperson Zaid Kalla said the courts did grant the department an opportunity to review mechanisms on regulations, the responsibility of which lay solely with the MEC.
“We were worried when the matter was politicised and we therefore advise political parties to understand processes leading up to formulation of acts as well as understanding of formulation of subordinate legislation as opposed to showboating for controversial purposes," Kalla said.
He added: “Furthermore the Sekhukhune Liquor Traders Association which has taken the department to court is an unincorporated liquor association.”