Thursday: 15 May  2003

This site will be updated on: 22 May 2003 at 17:00

Business - Sakenuus

• Liquor Bill could hamper industry
• Comment now on Paarl farm policy
• 2003 may be top wine vintage year
• New ventures in wine
• Verhoging in eiendomsbelasting kom
• Rekenaars vir almal
• De Poort gets new board and champions

SOUTH AFRICA's leading producers of wine and spirits have expressed their deep concern that the National Liquor Bill now serving before parliament may hamper rather than promote economic empowerment within the liquor industry.

It could also affect wine sales at popular tourism facilities at cellars like Nederburg.

The Wholesale Merchant Forum of the Wine and Spirit Industry of South Africa told Parliament's Trade & Industry committee this week that it fully supported the objectives of the Bill, but that the draft document contained fundamental flaws which could seriously impede investment and economic growth.

"The best point at which to promote economic empowerment, job creation and small business development is by addressing the vast number of unlicensed operators at the retail level," says Forum director Adv Riaan Kruger.

The Forum also expressed concern that the Bill prohibits a manufacturer from selling liquor to a retailer except with the permission of the Minister of Trade & Industry as a condition of registration.

"The previous Bill stated that a manufacturer may sell liquor to any licensed person. It is unclear why this specific section has been replaced with unfettered discretion being given to the Minister.

"This will give rise to a situation in which individual applicants for registration can be treated selectively and on the basis of different sets of rules.

"The unintended consequence is that industry participants will be reluctant to embark on long-term investments because of the uncertainty that this creates," says Kruger.

According to the Forum, this conferral of an open discretion is not only harmful to accessibility, legitimacy and simplicity, but may also be unconstitutional.

The Forum thus proposes that the Bill be amended to allow a manufacturer to sell and deliver its products directly to the retail trade.

Another flaw in the Bill which will hamper tourism growth is a clause which states that a manufacturer may not sell liquor produced by it to any bona fide tourist, except as a term of condition of registration granted by the Minister.

"The previous Liquor Bill stated that a manufacturer may sell liquor produced by it directly to the public for consumption on and off the registered premises (tourists).

"It is unclear why this section has been replaced with a discretion being given to the Minister and the Forum has similar concerns about this unfettered discretion," says Adv Kruger.

"Tourism is an important contributor to the South African economy and wine tourism is a growing trade. Members of the Forum own and operate popular tourist facilities such as Nederburg, Spier, Oude Libertas, Graham Beck Wines, The Bergkelder, Laborie, Van Ryn Brandy Cellars, Bellingham and many others.

"The Forum therefore proposes that the Bill be amended to allow a registered manufacturer to sell liquor produced by it, directly to tourists on registered premises.

"Liquor legislation should not duplicate other legislation and should not impose different burdens on industry participants than those imposed in other industries, Kruger said.

THE Drakenstein Municipality has invited the public to comment on the draft Paarl Farms Land Use Policy.

The policy stipulates that no further redevelopment for residential purposes should be allowed on the remaining Paarl "town" farms, mostly located on the slope of Paarl Mountain.

Farming should be the main activity on the property, although auxiliary uses related to tourism and farming should be allowed.

To ensure that these farmers are able to farm on an equal footing with those farming outside urban areas, the Municipality must ensure that expenses such as property tax, and water and electricity rates are comparable.

Council should also purchase the development rights of those farms which currently have a single residential zoning, to ensure that all farms are zoned for agriculture and land values are based on agricultural value.

Council should prepare a Growth Management Strategy for Paarl in order to identify alternative areas where pressure for urban/residential development could be absorbed.

The Paarl "town" farms should be included in the "Area of Special Significance" and all applications for development or construction work on these farms should be assessed by an architectural advisory committee.

The Council should implement a local economic development strategy which could assist farmers with development on agriculture and tourism related uses on their farms.

A complete report of the policy can be obtained from Mr Roelf at the Department of Planning and Economic Development on the third floor of the Paarl civic centre (tel 807-4500). The report is also available on the website www.mcaplan.co.za.

Motivated objections/comments can be lodged in writing to the municipal manager by 6 June.

The 2003 harvest appears to be meeting expectations of delivering one of the finest vintages in recent years, according to Wines of South Africa (Wosa).

A 7,5% increase in total yield is forecast, equalling an estimated total of 1 160 715 tons with all the major wine growing regions contributing to the increase. 

One of the reasons for the general improvement in yield is the young Shiraz, Cabernet Sauvignon, Cabernet Franc and Pinotage plantings that have come into production. 

The most marked improvements were in Stellenbosch and Paarl where production was up by 45,72% and 35,27% respectively on last year, when the crop had been adversely affected by downy mildew.

This year favourable weather conditions prevailed from planting right through to harvesting, and allowed the fruit to ripen slowly on the vine and develop optimal physiological ripeness with ideal sugar levels, good acids and prominent varietal flavours. 

Stellenbosch and Paarl had substantially less rain in January and February this year than in 2002. Gone were the wet conditions preceding the 2002 harvest and the challenges posed by downy mildew. 

In its place were dry conditions that kept rot and mildew at bay. Relatively little inputs were required, and some producers have described it as "almost an organic" year.

According to viticulturist Dricus van der Westhuizen, producers in Paarl benefited hugely from the big improvement in the weather.

Dryland vineyards were put under strain by the unusually dry growing season, but given a reprieve by the advent of rains at the end of March.

On balance, 2002 is expected to be a great vintage. Jan Boland Coetzee of Vriesenhof, says it may be the best in 25 years.

A BLACK empowerment investment company engaging in the wine and spirits industry will be launched at an industry conference in Cape Town on 26 May.

The company will be targeting participation of previously disadvantaged individuals in all tiers of the industry.

The Black Association of the Wine and Spirit Industry Investments (Bawsi-i) is rooted in a nongovernmental organisation, Bawsi, that was initiated in 1998 with membership drawn from trade unions, civil and social organisations and small black businessmen in the wine sector.

Bawsi will have a 40% equity stake in Bawsi-i, while Bawsi-i management will have 20%, a member share incentive scheme of 20% and a strategic partner the remaining 20%.

According to Bawsi-i MD Garth Adams the investment company has a long-term target of 6,6% ownership by previously disadvantaged individuals at all levels of the wine and spirits industry by 2025. The five-year target was about 2%.

The company was not specifically targeting ownership of land, but all levels of the value chain, including retailing.

Adams said Bawsi-i recognised it faced a difficult task in an industry where 95% of land and facilities were owned by white males and where ownership was dispersed and often in private hands and trusts.

He said some of the individual empowerment initiatives launched by wine farmers in the past six or seven years had not been successful because even now most farm workers lacked the financial skills to run their businesses on their own.

This meant they had not achieved real empowerment.

Bawsi-i considered that while it was vital to have a labour component to these schemes, management and skills transfers had to take place and it believed it could assist in those areas.

Bawsi-i's management team includes Mike Harrison, formerly a farm owner, Vukile Mafilika, formerly a public relations executive with wine and spirits group KWV, and Wanjiru Karima, a businesswoman. The nonexecutive chairman is Bonang Mohale.

Johan van Rooyen, the CEO of the SA Wine and Brandy Company wine producers, labour and wholesalers, said that various transformation models throughout the value chain would have to be considered.

Empowerment models could range from share schemes to "outgrower" projects, outsourcing processes and targeted procurement contracts.

Each model would have to be business-based if it were to prosper.

Bawsi-i will make a presentation of its mandate, investment approach and management at the SA Wine Industry Investment Conference on 26 and 27 May. 

PLAASLIKE owerhede sal die magte wat hulle later vanjaar gaan bekom wanneer die wetsontwerp op eiendomsbelasting wet word, met groot omsigtigheid moet benader.

Dit is die mening van John Herbst, uitvoerende beampte van Aida National Franchises, wat daarop wys dat elke plaaslike owerheid na verwagting self belastingkoerse sowel as vrystellings en kortings sal kan bepaal, al sal die nuwe wet 'n eenvormige belastingmetode vir die hele land voorskryf.

"En dit is wanneer sulke besluite geneem word dat die owerhede veral omsigtig moet wees om te verseker dat belastingkoerse nie net bekostigbaar is nie, maar terselfdertyd genoeg inkomste verskaf om die dienste waarop alle belastingbetalers geregtig is, te ondersteun.

"Hulle sal ook die goue middeweg moet vind om seker te maak dat dienste na histories agtergeblewe gebiede uitgebrei word en dat diensvlakke in alle voorstede gehandhaaf word."

Herbst sê daar word algemeen aanvaar dat elkeen wat eiendom besit belasting moet betaal, net soos wat elke werkende persoon inkomstebelasting betaal.

Daar word ook aanvaar dat markwaarde die algemene grondslag vir die bepaling van belastingkoerse moet wees, soos wat in die nuwe wetgewing voorgestel word.

"Wat nie aanvaar word nie is dat eiendom met 'n hoër markwaarde teen 'n hoër koers aangeslaan moet word - of dat geen belasting gehef moet word vir eiendom onder 'n bepaalde waarde nie.

"Dit is die kwessie wat bevraagteken gaan word wanneer plaaslike owerhede die nuwe wetgewing toepas. So 'n beleid sal rampspoedig wees vanuit 'n eiendomsoogpunt.

"Dit sal belastingbetalers uit gebiede waar die waarde van eiendom hoog is dryf, die markwaarde in sulke gebiede verlaag, en dus die inkomste van die plaaslike owerheid verlaag.

"Mettertyd sal dit kopers en ontwikkelaars waarskynlik ook na munisipaliteite waar belasting regverdig gehef word laat stroom - wat tot 'n permanente verlies aan inkomste vir plaaslike owerhede met gestruktureerde belastingstelsels sal lei."

"Terselfdertyd behoort plaaslike owerhede reeds te poog om hulle stelsels te verfyn sodat hulle inkomste wat aan hulle verskuldig is, kan verhaal.

"Hulle oogmerk behoort te wees om die belastingbasis te verbreed, soos wat die SA Inkomstedienste gedoen het, om sodoende die individuele las van belastingbetalers te verlig."

* A property agent has warned councils agsintst the dangers of inequity in property tax .

DIE Safmarine Veeldoelige Sentrum in Vanwyksvlei, Wellington, spog nou met 'n nuwe rekenaarsentrum.

Die sentrum is onlangs geopen nadat geld van die Boland Distriks Munisipaliteit ontvang is.

Distriksburgemeester Clarence Johnson, asook die burgemeester van Drakenstein, Herman Bailey, was teenwoordig by die opening.

Daar is Maandag met basiese rekenaaropleiding begin. Nege mense kan per kursus geakkommodeer word en die koste is nominaal.

Die modules wat gedek word, is inleiding tot rekenaars, Windows '95, MS Word '97, Microsoft Excel '97 en tikvaardighede.

Klasse is van 08:00 tot 18:00. Kontak hulle ook oor aandklasse.

Vir meer besonderhede, skakel Christine Johnson of Sidney Petersen by 862-1337. Voornemende studente moet liefs self die sentrum in Coodestraat besoek, aangesien hulle 'n vorm moet invul.

THE De Poort Village Project is planning a bigger and better Heritage Event in September, similar to the one held on Heritage Day last year.

The Festival honours a time when Drakenstein was the hub of a major industry - that of wagon, cart and carriage building. This year will include a re-enactment of a wagon journey from Kimberley to Paarl along the "Forgotten Highway". 

The first AGM held recently was attended by 30 representatives of various organisations in Drakenstein, including the Mayor and Deputy Mayor of Drakenstein and the Boland District Mayor, Clarence Johnson.

Although Drakenstein mayor Herman Bailey assured the audience of Drakenstein Municipality's support for the De Poort Project, project co-ordinator Frances Graves pointed out that bureaucratic inertia had slowed down its progress.

Council had agreed to make a municipal site in Suider Paarl available for its use for 25 years (renewable) at a nominal annual lease as the project would bring economic upliftment through a unique tourism concept involving the entire community.

While Province had provided funding for the Feasibility study, Business Plan and Marketing Plan after a year there were still delays in finalising the required rezoning of the municipal site. 

"Comments are outstanding from various agencies and ever more 'studies' are requested - all of which would require funding. 

"Although the enormous potential of the project to draw more tourists to the municipal area and the economic spin-off for the entire region was acknowledged, potential investors, beneficiaries, visitors and donors could quickly lose interest unless these outstanding matters are resolved speedily."

In the discussion Mike Fabricius (CEO of Western Cape Tourism) stated that it would be an indictment of all parties if the project did not move forward.

He urged local authorities to help to develop such tourism enterprises and described it as an important example of a public private initiative tapping into the potential of people and their diversity in culture, heritage, art and craft skills.

He pledged the full support of Western Cape Tourism, as did Mayor Johnson on behalf of Boland Municipal Council.

Johnson encouraged the Task team and said the De Poort Heritage Village should form part of the projected Museum Route.

The new board members elected at the meeting are Ivan Arendse, Herman Bailey, David Clift, Frances Graves, Yusuf Patel, Jean Smit, Dr Johan van der Merwe and André van Zitters.

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