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One of the toughest challenges that we’ve had to face during the pandemic, is the economic downturn brought about by lockdowns.
Jobs have been lost, businesses have closed, and many households are struggling to stay afloat.
Our current adjusted alert level 3 restrictions include a 9PM curfew, and a ban on the sale and onsite consumption of alcohol. The beaches are also closed, along with other spaces like public parks.
All of this, says Western Cape Premier Alan Winde, has amounted to what he calls a “second pandemic” of growing poverty, unemployment, and hunger.
As such he has written to Health Minister Dr Zweli Mkhize to request that some of the restrictions currently in place be relaxed in the Western Cape.
In a document sent to Mkhize, and published on the Western Cape Government Website, Winde said that while he supported the decision to implement the lockdown, the circumstances have changed and the task of saving livelihoods as well as lives needs to be prioritised.
In the document he outlines some of the economic challenges currently faced by the Western Cape:
The first two weeks of the latest alcohol ban is estimated to have cost the Western Cape economy R1 billion. This has impacted 1 893 direct jobs in the retail sector and 905 induced and indirect jobs across the value chain resulting in 2 798 jobs being compromised.
Nearly 30% of restaurants that the government surveyed have closed temporarily or permanently.
When it comes to the wine industry, Winde outlined some staggering figures:
- Wine grapes represent 50,3% of the 181 233 ha under production in the Western Cape, and the replacement value of these wine grapes amount to R33,94 billion.
- The Western Cape’s Department of Agriculture estimates that 45 610, people work in the primary production side of the wine industry and it supports 228 053 people.
Overall, if the ban is to continue for a full month, it will end up costing the Western Cape’s economy R2 billion, which would then impact 5 596 jobs.
To combat this problem, the Western Cape government has proposed these changes:
- The ban on beaches and other public spaces must be lifted in the province. Open spaces with good ventilation are safer. The end of the festive season will also bring about an end to large crowds on beaches.
- The curfew must be changed to between 11PM and 4AM. The current curfew makes it difficult for restaurants to provide a dinner service and this sector is suffering as a result.
- A closing time for 10PM for establishments can be implemented, allowing staff to get home before curfew begins.
- Alcohol sales should be permitted offsite from Monday to Thursday, and not permitted on the weekend.
- Alcohol sales should be permitted at wine farms on the weekend, as this is the time when most visitors come to wine farms.
- Onsite alcohol consumption should be allowed. If restaurants cannot sell alcohol with dinner service, they will not remain profitable resulting in job losses
Winde says that they will continue to monitor data as it comes in to ensure that a balance is maintained between battling COVID-19, and ensuring that jobs and businesses aren’t lost.
You can read the full statement here.
[source:westerncapegov]
