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SFH on buyout package for live poultry trade
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    Following is the transcript of remarks made by the Secretary for Food and Health, Dr York Chow, at a stand-up media session in the West Wing lobby of Central Government Offices today (July 25):

Secretary for Food and Health: We have made a decision this morning after the meeting of the steering committee on avian influenza on the policy of granting ex-gratia payment for the live poultry trade in Hong Kong, having analysed the number of applications we have received last night, which is 339 stalls.  Out of that, 161 are coming from the fresh provision shops and 178 from our market stalls. The total number of live poultry stalls will be reduced from 468 to 129.

    At the same time, the number of poultry, particularly chickens in Hong Kong, will be reduced from the pre-June number of about 40,000 down to 11,000 to 15,000 per day.  This is a substantial reduction of live chickens in our markets and will substantially reduce the risk of transmission of avian influenza to humans in our markets.  With that in mind, we have decided to go ahead with the ex-gratia payment for the existing 339 applicants.  At the same time, we feel that with the request from some of the retailers that they need more time to consider, we have also extended the application date to the retail trade for another two months until September 24.  But they must terminate business before that day as other applicants who have already decided. 

    This is what we have made for the retail trade for the time being.  I have to explain the reason why we have to do this.  With the reduction in the number of chickens in markets, our health inspectors and avian influenza surveillance will be more effective to conduct tests in those places in the coming months.  We could also have better enforcement of any possibility of smuggling of chickens in the markets.  This is something that we think is very effective for the time being.  The Agriculture, Fisheries and Conservation Department will be contacting the other traders soon - the transporters, the wholesalers and the farmers to see how many of them would be interested in terminating their business.

    They will also be entitled to the ex-gratia payment that we have promised.  We shall adjust the number of live chickens coming from the Mainland, so that we will meet the demand and the capacity of the retail level, about 11,000 to 15,000 per day.  This will be split into 50-50, that is, half from Hong Kong and half from the Mainland, similar to the existing arrangement.  Regarding the long-term arrangement, I think with the reduction of the poultry stalls and live poultry in Hong Kong, we will be able to plan a smaller size central slaughtering plant for the future.

    We hope that this will also shorten the time that would lead to total segregation of poultry and human in the longer term. 

Reporter: (inaudible)

Secretary for Food and Health: I think we have already stated that whoever is going to stay in this trade, particularly the retailers, they have to maintain the existing policy of no live chickens overnight in our markets.  At the same time, if they face any unexpected incidents of avian influenza in future, they will not have any compensation regarding economic loss.  We will compensate for any culling of chickens that are necessary.

Reporter:  What caused you to back down?

Secretary for Food and Health: I think we based on 85% as an indicator, that is given to us by the trade.  At that time, because they thought they could not survive with no live chickens overnight policy that we have imposed on them.  It seems that for the past three weeks, the policy was working quite well.  And also, the market is functioning quite effectively.  I think that might be the reason why more people are willing to stay.  We cannot actually analyse everyone of them.  But it is important to note that it is the Government's policy that for the time-being, we have to impose no chickens overnight policy.

    Those who cannot survive, they can choose to quit the business.  We do not like to give substantial compensation if there is no substantial number of stalls that decide to quit.  We have set a target of 85%.  Now, looking at the number of stalls remaining and the number of chickens remaining, we feel that this is also a feasible policy and also a worthwhile policy to go ahead.

Reporter: (inaudible)

Secretary for Food and Health: I think nobody is completely relaxed when it comes to avian influenza.  It is something threatening every country, every community, particularly in this part of the world.  This is important for us to do as much as we can in order to minimise the risk.  What we are doing now is trying to stop avian influenza in Hong Kong, particularly in wet markets.

(Please also refer to the Chinese portion of the transcript.)

Ends/Friday, July 25, 2008
Issued at HKT 16:30

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