As the national lockdown stretches into its fourth week, organised business is turning to the courts in a desperate bid for relief from the crippling impact on the country’s economy.
And the stakes are high, say experts. Daniel Silke, director of the Political Futures Consultancy in Cape Town, said there was a “very real possibility of massive job losses and a complete dislocation of what was an already weak economy” on the horizon.
The ban on the sale of hot foods during the lockdown is the latest to find itself the subject of potential court action, with Trade and Industry Minister Ebrahim Patel last week telling journalists retailers were not supposed to be operating hot food sections over this period.
On Friday, lawyers acting for business organisation Sakeliga wrote to Patel, giving him until this morning to reconsider his stance, or they were threatening to take him to court.
Silke said yesterday that South Africa needed to incrementally open up key aspects of the economy and that the sale of pre-prepared food should be resumed as soon as possible.
“There’s the direct issue of those that are not working, or who have been laid off, or who will not be paid during the lockdown. But the medium-term effects – in terms of the survival, or lack thereof – of business and the restructuring that business will have to pursue, are going to be felt perhaps for years,” he said.
“The indirect impact will be felt as businesses reassess their own strategies in a post-lockdown era. Part of their new strategies, potentially, will be to streamline, and that will further diminish employment opportunities for South Africans.”
Sakeliga, in its lawyers’ letter, argued the lockdown regulations did not prohibit the sale of warm, cooked and/or prepared food and that this was “illogical, irrational and impractical”.
“The fact is that, by the time of its sale, all food items have undergone some combination of warming, cooking or preparing,” the letter said.
Patel’s spokesman, Sidwell Medupe, said he would comment once the minister had formally responded to Sakeliga.
The Democratic Alliance’s Dean Macpherson issued a statement yesterday, saying the prohibition would impact essential services workers who relied on cooked food.
“This will also be particularly devastating for the elderly, who may be unable to cook food due to their frailty,” Macpherson said.
The party was obtaining a legal opinion on the issue. Sakeliga on Friday also said attempts to overregulate the food production industry would lead to food shortages.
“Many communities are already suffering as a result of shortages in the supply of even basic food,” its lawyers said. “By continuing to interfere with the production and supply of food, government will, in our client’s view, only cause further and possibly even more severe food shortages.”
Silke said the rescue packages on offer from government at present were “very limited”.
“That is an indication of the weakness of the coffers of the state and the inability of the state to really – certainly up until this point – provide a bridging mechanism for the destitute.
That inability becomes more pronounced as the lockdown continues”.
He said increasing social welfare was critical.
“We are moving into the next two weeks, where hunger and frustration are going to build. And that can have a political impact.
“The praise that the president got for being decisive and taking quick action can be reversed as citizens become more desperate.”
The Fair-trade Independent Tobacco Association (Fita) on Friday indicated in a statement that it had decided to approach the courts “for the appropriate relief vis-à-vis the ban on the sale of cigarettes” during the national lockdown.
Fita’s chair, Sinen Mnguni, said yesterday the association had not yet received any feedback from government.
“To date, rather regrettably, government has, through their conduct, given us the impression they are not interested in any form of engagement with us on this issue,” Mnguni said.
Mnguni said the association was hoping to serve papers on government by this morning.
– bernadettew@citizen.co.za
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