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Following is a question by the Hon Ronny Tong and a written reply by the Secretary for Food and Health, Dr York Chow, in the Legislative Council today (May 27):
Question:
The Director of Audit's report on the results of value for money audits released in October 2003 pointed out that the vacancy rate of the market stalls of Luen Wo Hui Market had been on the high side since it was commissioned in July 2002. The major reason seemed to be that the market had to compete with Shek Wu Hui Market in Sheung Shui for patronage, and the Food and Environmental Hygiene Department had not conducted any viability study before the two markets were built. The aforesaid situation is similar to the complaints I received from the tenants of Luen Wo Hui Market, who indicated that despite the growth of population in the neighbouring districts, their business turnover had been decreasing instead of increasing, and the number of leased stalls had also continued to drop, hence making the business environment very difficult for them. In this connection, will the Government inform this Council:
(a) of the relevant vacancy rates and the patronage of the two markets, set out in Table 1.
(b) given that the aforesaid report recommended the authorities to take remedial measures to reduce the vacancy rate of the market stalls, of the follow-up actions taken by the authorities and the effectiveness of such actions; and
(c) of the authorities' specific plans to make Luen Wo Hui Market more appealing to residents in the vicinity, so as to improve the business environment for the tenants concerned?
Reply:
President,
(a) The respective vacancy rates and average monthly patronage figures of Luen Wo Hui Market and Shek Wu Hui Market since 2003 are shown in Table 2.
(b) & (c) The Food and Environmental Hygiene Department (FEHD) organises various promotional activities for its public markets every year, including activities to celebrate traditional festivals (e.g. Lunar New Year, Tuen Ng Festival, Mid-Autumn Festival etc), thematic workshops and roving exhibitions etc, with a view to improving the business environment of the markets. These activities have been well received by the public and market tenants. Opinion surveys of participants showed that an average of over 90% of participating customers were satisfied with the activities and supported organising similar activities, while an average of 70% of tenants considered that the activities could galvanise patronage and was conducive to the business environment. The FEHD will continue to organise similar promotional activities.
Since February this year, the FEHD has lowered the upset auction prices of long-standing vacant market stalls in order to attract more bidders, thereby reducing the vacancy rate. Upset auction prices are set at 80% and 60% of the Open Market Rental for stalls fallen vacant for six months and eight months or more respectively. As at end April 2009, 552 long-standing vacant stalls (eight of which are in Luen Wo Hui Market) have been successfully let out under the scheme.
Moreover, in response to the views raised by the Audit Commission and the Public Accounts Committee of the Legislative Council, the FEHD has commenced in-depth utilisation and opinion surveys since March this year on all its wet markets by batches to gather the views of tenants and customers on possible improvements to the markets. The FEHD will take into account the findings of the survey and devise suitable measures and arrangements to enhance the attractiveness of individual markets and improve the business environment of the tenants. The first batch of the opinion surveys (including that for Luen Wo Hui Market) is expected to be completed in mid-2009. It is planned that the survey findings will be reported to the Legislative Council Panel on Food Safety and Environmental Hygiene in July this year. Drawing on the findings of the opinion survey on Luen Wo Hui Market, the FEHD will work out practicable improvement measures in consultation with stakeholders, such as tenants and the Market Management Consultative Committee etc.
With a view to further increasing patronage and improving the business environment of public markets, the FEHD has recently launched a new scheme by allowing designated vacant stalls in six selected public markets to operate services trades and new types of business, such as traditional snack shops and bakeries. Luen Wo Hui Market has joined the trial scheme and 17 stalls in the market are designated for such trades, including domestic services agencies, beauty/manicure/massage/Chinese medicine/bone-setting, real estate and computer-related service. Open auction to let out these stalls will be held in June this year.
Ends/Wednesday, May 27, 2009
Issued at HKT 11:48
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