GEORGE NEWS - A new by-law that provides guidelines to local municipalities for regulating local businesses - formal and informal - has sparked concern among local business leaders that it will restrict rather than strengthen the business environment.
According to Keith Sharpe, a director of the George Business Chamber, they would like more opportunity for public participation before the provisions of the Standard Draft By-law for Township Economies is implemented.
"It is important that businesses are registered so that there can be a database which enables better control to ensure minimum standards, but the by-law as it stands will mean that informal traders will be subject to the same registrations and permits as formal businesses, which they will never be able to adhere to. In its current form, the draft by-law will actually inhibit, if not criminalise, the informal sector.
"This will hamper the township economy, which is the opposite of what we want to achieve.
"Only one month was granted for public participation, which is insufficient. The draft requires more discussion."
The by-law was gazetted in November last year by the minister of Cooperative Governance and Traditional Affairs (Cogta) to provide standardised norms for the formal and informal business sector. According to the department, its aim is also to facilitate doing business.
Municipalities have been granted a period of six months from the date of promulgation (7 November 2024) to adopt the by-law, or amend existing by-laws in terms of these new regulations.
Some key features of the draft by-law as highlighted by Cogta include simplified permitting and registration, ensuring compliance with health and safety provisions, and establishing designated business zones where trading is permitted.
Referring to some very detailed requirements in the by-law for registering a business, Sharpe said, "Registration is understandable to achieve discipline and administrative order, but the questions must be asked how these will be policed and how compliance monitoring will be carried out?
"Those who are penalised may well feel aggrieved if all around them carry merrily along. In our discussion with entrepreneurs, they felt that the regulations would be onerous and very difficult to implement and monitor fairly. One has to ask then if the by-law will not defeat the purpose and result in more offenders than happy, thriving entrepreneurs."
Dennis Farrell of the Business Café also said there are numerous aspects in the draft that require clarification and that some of the requirements would result in a restrictive rather than supportive trading environment.
The by-law will also impact local by-laws and planning documents such as the Local Spatial Development Framework (SDF) and Integrated Development Plan (IDP). "Local business would like a participation discussion to finalise the concerns and recommended changes, but to date this has not happened."
‘We bring you the latest Garden Route, Hessequa, Karoo news’
