The Cape Chamber of Commerce and Industry has added its voice to the growing concern over government’s decision to ban wine exports.
“To put it mildly,” said Chamber president Geoff Jacobs, “it is difficult to understand the government’s reasons for re-imposing the ban on wine exports a mere 10 days after lifting it.”
This comes after government recalled its decision to allow wine exports to continue after initially allowing producers to move stock to the ports.
According to Terry Gale, chairman of the Exporters’ Club Western Cape, this decision would hit not only the Western Cape economy, but the national economy.
“Prohibiting the export of wine will have a massive impact as 290 000 lives are dependent on this sector alone, let alone the R9bn boost to the economy,” he said.
Jacobs said it was incredible that Treasury had opted to stop wine exports.
“Is the Treasury so flush with cash that it does not need the taxes due on the profits? Surely not. Is the health minister worried about farm labourers picking grapes while ignoring a safe personal distance from each other? That seems a bit thin,” he said. “What seems to be the reason has nothing whatever to do with dictating better health habits in a time of lockdown, or for that matter reducing alcohol-fuelled gender-based violence.”
Jacobs said all indications were that the ban was aimed at reducing the temptation of gangsters to steal wine when it en route to the ports for export.
“Every way one looks at it, it seems a prime example of the exercise of power for the thrill of it, regardless of the damage it does, in this instance, to the Treasury which needs every cent in tax revenue it can raise from the private sector.”
He said the way things were going, some people were beginning to think some measures taken to fight the spread of Covid-19 were akin to a man shooting himself in the foot because he was suffering from gout.
“The sooner this ban is lifted, the sooner our economy will recover once the emergency is over. Leaving it in place serves no purpose, does great harm to a major foreign exchange-generating industry, starves the Treasury of resources needed for the emergency, and is no help to thousands of farm workers and their families,” he said.
