Mirror talk: SA Health Minister accuses liquor companies of “arrogance” – but who’s the one refusing to engage?
Despite the fact that there is very little evidence that it will do any good at all, the South African government is moving rapidly towards a comprehensive ban on all forms of alcohol advertising. It seems likely that the ban could be in effect within a relatively short time, and the industry is pondering potential responses. Michael Mabasa of the Industry Association for Responsible Alcohol Use discusses some of the alternatives the industry has proposed, as well as the likely outcome of the ban. Although Mabasa is correct, and evidence from around the world suggests that banning booze ads has basically zero impact on alcohol consumption, it's unlikely that the SA government will respond to rational argument. – FD
ALEC HOGG: Despite a year of lobbying, a comprehensive ban on all forms of alcohol advertising is now looking increasingly likely. The proposed alcohol advertising ban could have a significant impact on not only the industry, but also other players linked to the trade. Michael Mabasa, Spokesperson for the Industry Association for Responsible Alcohol Use joins us. Michael, I don't know if you have ever been called arrogant before, but that's certainly, what the Health Minister Aaron Motsoaledi said about you and your colleagues in the liquor industry yesterday. What have you done to the man to evoke such an emotional reaction?
MICHAEL MABASA: Well Alec, I think we are obviously very surprised by the Minister's comments. We obviously disagree with the manner in which government has proposed in relation to this particular bill, and if our disagreement means arrogance then we are obviously concerned. Our view is that we need to tackle the issue and we need to be able to address it the best way we can in the best interest of the country, because any alcohol ban in the country will have major implications, not only for the industry but certainly for other downstream economic sectors as well.
ALEC HOGG: Clearly, the emotional side is that there is a lot of alcohol abuse. That's one of the issues the Minister is no doubt trying to address. The unintended consequence of this though, is something that we need to unpack and perhaps if you could help us… Have you done any research into where this similar action was taken elsewhere in the world and what the implication might have been?
MICHAEL MABASA: Certainly, we've done a lot of work, and the World Health Organisation did most of it. Research has shown across the world, that alcohol advertising and alcohol consumption can never be linked. Particularly because of the fact: if you look at the World Health Organisation's report, it says that ten years ago we've seen a decline in terms of per capita consumption of alcohol, particularly in South Africa, so the consumption of alcohol has been going down over the past ten years. On the other hand, the advertising spend by companies like the South African Breweries – Brent House Distil – has actually increased quite significantly. Now you may be asking yourself 'why are these companies spending so much money on advertising if the per capita consumption is declining?' The answer is very simple. The majority of South Africans – more than 65 percent of them – do not drink alcohol at all. Only 35 percent of South Africans drink alcohol.
Now the companies are investing specifically to be able to convince consumers to move from one product to the next. We've also seen in many other countries, consumption levels where alcohol advertising has been banned, has not actually decreased. We are also saying to our own government 'let us look at the key issue', and the key issue is that it's about abuse. We agree, as the industry, that South Africa does have a major challenge in terms of alcohol abuse. We need to be able to work together with government in order for us to be able to address that particular key issue the best way we can.
ALEC HOGG: Surely, you should be coming up with some creative solutions to that. I heard earlier this week, that there are still 47 million Americans who are on food stamps, for instance. Until recently – living in a rural area – when the social grants are paid, the alcohol consumption in that area shot through the roof. Surely, that would be one of the ways to perhaps say 'instead of paying social grants why not introduce food stamps and we, as the alcohol industry, could assist you in this way'. Michael, I'm just trying to find some solution here that works for all parties.
MICHAEL MABASA: That is exactly what we are also calling for, because to be honest with you, as we speak today we have not seen any bill. We hear that cabinet has approved a bill on the 18th of September, but we have not seen this particular bill. Secondly, government has not engaged with us. I'm in Cape Town now and the Cape Town newspaper for example… The Health Minister Spokesperson was reported in the Cape Times as saying that government will not interact and will not engage with the industry. That is very worrying for us, because those suggestions that you are talking about and making reference to in relation to what happened in the US, are some of the things that we would also want to put on the table. It's not solely in terms of social contributions that we are able to make as the industry. There are other things that we believe we should be able to do, differently. If you take, for example, the issue around the frequency of adverts on television, we need to be able to look at that particular issue because government has indicated its own objections that we have too many adverts on television. We believe very strongly that there's scope for us to be able to deal with that particular issue.
The content of these adverts have also raised an issue. We believe we are able to do a lot of work in making sure that we are able to define how we can best transmit our messages through our adverts. If you look at billboards, for example, the industry has already started removing billboards across the country particularly next to schools, next to places of worship etcetera. There are many interventions, Alec, which we are able to put on the table. All we are saying is, 'a platform to be able to speak to government and be able to come up with these particular solutions' so that we are really able to address the issue of alcohol abuse, because that is where the problem is.
ALEC HOGG: Michael, just to confirm: you say that you have tried to speak with government and you have been refused. They will not talk to you.
MICHAEL MABASA: We have, indeed. They have not spoken to us up until now. The industry, as well as our members, has individually attempted to speak to the Minister of Health. For the record, let me indicate that the Minister of Social Development issued a directive, in writing to all government departments, not to speak to the industry at all. We are therefore concerned about those particular developments and what we are calling for, is really for our government to be able to sit with us in order for us to resolve this issue. We've invested immensely as the industry. Alec as you know, we're contributing above 92 million every year – to the South African economy, which translates to about 4.4 percent of the GDP of this country. We are a big player in this industry and we want to be able to get at least an opportunity to be able to say 'we have an issue. We believe that we are able to work together in order for us to be able to resolve it'. As an industry – collaborating with government. The fact that we have not been given any platform, is definitely a point of concern for us.