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Following is a question by the Hon Vincent Fang and a reply by the Secretary for Health, Welfare and Food, Dr York Chow, in the Legislative Council today (May 23):
Question:
In announcing this year's Budget, the Financial Secretary stated that rates for the first two quarters of the current year would be waived, subject to a ceiling of $5,000 per quarter for each rateable tenement. However, tenants of the Government-run wholesale food markets have relayed to me that they have not yet received any rates concession notice from the authorities concerned. In addition, I have learnt that the Rating and Valuation Department (R&VD) will revaluate the rateable values of properties in the current financial year. In this connection, will the Government inform this Council:
(a) whether rates are included in the rents paid by tenants of all the current Government-run wholesale and retail non-staple food markets; if not, whether it is the case that R&VD has not collected rates from such markets, or that the government departments which managed these markets have paid the rates concerned on their own; if rates are included, whether the tenants concerned will receive the above rates concession; if so, when and how the Administration will rebate the relevant sum to them, and of the circumstances under which the tenants will be denied such concession; and
(b) whether the above revaluation of rateable values of properties will cover wholesale and retail markets, including the markets under government departments; if so, whether according to the existing policy, the Administration will reduce the rents concerned because the revaluated rateable values of such markets are lower than the current values?
Reply:
Madam President,
(a) At present, the rent collected by the Food and Environmental Hygiene Department (FEHD) from tenants of the public markets under the department's purview does not include rates. The rates of the public markets are paid for by FEHD. This arrangement is the same as that of the former Urban Council and Regional Council. As rates are excluded from the rent paid by tenants of the public markets, the department does not have to make any arrangement for rebating the relevant sum to the tenants.
As for fresh food wholesale markets, all such markets under the Agriculture, Fisheries and Conservation Department (AFCD) have to pay rates, and the tenancy agreements stipulate clearly that the "monthly rents are inclusive of rates". The Rating and Valuation Department (R&VD) regards each wholesale market as a single entity. According to the Financial Secretary's measure to waive rates for the first two quarters, each fresh food wholesale markets will get a waiver of $10,000, and the three wholesale markets directly management by AFCD will receive a total of $30,000 in rate wavier. In line with AFCD's established principle in managing tenancy agreements, even if there are changes in rental costs (including the amount of rates payable) during the tenancy period, rental levels would not be adjusted immediately.
(b) The R&VD will cover Government wet markets and fresh food wholesale markets in its reassessment of rateable value of all property in Hong Kong in October this year.
For the public markets under FEHD's purview, as I have mentioned just now, rates for public markets under FEHD's purview are independent of the rent and are paid for by FEHD. Therefore, whatever the result of the reassessment of rateable value may be, it will have no impact on the rent paid by the tenants of the public markets under FEHD's purview.
As regards fresh food wholesale markets under the management of AFCD, the Government will conduct a costing exercise every two years to determine the rents for these wholesale markets. The next round of costing exercise will commence in mid 2007. In conducting the costing exercise, the Government will consider all expenditure items, including payroll costs, cleansing and security services fees, maintenance expenses, depreciation rates and the prevailing rates payable, etc, and adjust the rents according to the actual circumstances.
Thank you Madam President.
Ends/Wednesday, May 23, 2007
Issued at HKT 12:14
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