Alcohol manufacturers, businesses making loss

BUSINESSES involved in the manufacturing and sale of alcohol are seeing a serious decline in their revenue, according to the PNG Manufacturers Council.
Chief executive officer Chey Scovell said these businesses were generating half, or even less, in revenue prior to the Covid-19 pandemic.
Scovell said the current restrictions on the sale of alcohol at various venues was also a contributing factor.
“The industry is disappointed by the restrictions,” he told The National.
Scovell said the current restrictions on alcohol sales had seen an increase in illicit alcohol manufacturing, distribution and sale.
He said alcohol manufacturing businesses were some of the highly taxed businesses that were now making a huge loss.
The restrictions had also seen the Government miss out on K21 million on goods and services tax and excise duty, according to South Pacific Brewery Ltd.
SP Brewery managing director Ed Weggemans previously told The National that SP Brewery had 2,682 licensed customers throughout PNG and the restriction would result in the closure of 2,228 outlets, of these 75 per cent (1,671) were small to medium enterprises.
“Liquor restrictions are forcing consumers to the illicit trade and alcohol consumption continues while the PNG Government loses out on income from the licit trade,” he said.
“Homebrew and steam can have devastating effects on the people of PNG as the production methods are extremely unsafe and the production process produces a product with an undefined alcoholic content which, in some cases causes blindness over time or acute organ failure in other cases, which is a burden for the healthcare system in PNG and law and order.
“Illicit alcohol operators thrive during liquor restrictions as these present the ideal opportunity for uncontested sales.”