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Following is a question by the Dr Hon Elizabeth Quat and a written reply by the Secretary for Food and Health, Dr Ko Wing-man, in the Legislative Council today (November 26):
Question:
The Audit Commission (Audit) conducted reviews on the management of public markets under the Food and Environmental Hygiene Department (FEHD) in 2003 and 2008, revealing that there were quite a number of long-standing vacant or non-trading stalls in the markets and making recommendations for improvement to FEHD. However, it has been recently reported that the aforesaid situation has not improved at all. In this connection, will the Government inform this Council:
(1) of the current vacancy rate in each public market;
(2) given that public market stall tenants who use their stalls for storage purposes and not for trading are in breach of the tenancy agreements, of the measures to be taken by FEHD to curb this situation;
(3) whether FEHD has any new measures to increase the customer flow of those markets with a high vacancy rate in order to improve their business environment, and whether the Government has any plan to redevelop these markets for other uses in order to make optimal use of public resources; if it does, of the details; if not, the reasons for that;
(4) as it is suggested that the Government should, by making reference to the operation mode of Shang Yin Shui Chan fish market in Taiwan, redevelop some public markets in the urban areas and turn them into new attractions, thereby revitalising these markets, whether the Government will study the feasibility of the suggestion; if it will, of the details; if not, the reasons for that; and
(5) as there are views that the Government should contract out the management of public markets to the private sector in order to enhance the management efficiency, whether the Government will study if such a practice is feasible; if it will, of the details; if not, the reasons for that?
Reply:
President,
At present, there are 101 public markets under the management of the Food and Environmental Hygiene Department (FEHD), including 76 public markets that sell mainly fresh provisions and other dry and wet goods, as well as 25 standalone cooked food markets.
My reply to the various parts of the question is as follows:
(1) As at September 30, 2014, the 101 public markets mentioned above provide a total of 14 440 stalls, with a vacancy rate of about 9%. For the vacancy rate of each market, please refer to the Annex.
(2) In the past, many public markets were used to accommodate on-street hawkers. As many of these stalls are small in size, stall operators need extra space for storage. To cater for their actual needs, long-standing vacant stalls and stalls in less attractive locations are designated for storage purposes for lease by stall operators. However, such an arrangement is only applicable to operators running their business in the same market. On the other hand, for stall operators who fail to operate as required under the terms of tenancy or wilfully use their stalls for storage without permission, FEHD will take appropriate actions against them for breaches of tenancy agreements. FEHD staff inspect markets on a daily basis to ensure compliance with tenancy terms. From 2003 to October 2014, FEHD issued a total of 252 warning letters and terminated the tenancy agreements of 16 stalls due to breaches of tenancy terms in operation. Moreover, FEHD will conduct an in-depth review of the operation of public markets and consider shutting down markets with a high vacancy rate.
(3) The occupancy of public markets is influenced by many factors, such as competition from retail outlets selling similar commodities in the vicinity and demographic changes in the district. FEHD has been seeking to improve the environment and ancillary facilities of public markets, in order to attract patronage, enhance competitiveness and improve the operating conditions of stalls. In order to better utilise stalls that have been left vacant for a long time because of their poor locations, FEHD has, since February 2009, put in place lower upset auction prices at 80% and 60% of the open market rental for stalls which have been left vacant for six months and eight months respectively. This is aimed at enhancing the stalls' attractiveness. As at October 2014, a total of 2 539 stalls were let out through this arrangement. In addition, starting from July 2009, FEHD has gradually introduced service trades, light refreshment and bakery stalls into public markets for service diversification. Under this scheme, a total of 122 stalls were let out for these services as at October 2014. In October 2010, FEHD also started to let out small stalls through short-term tenancy on a trial basis to allow more flexibility for prospective tenants so as to increase the occupancy rate of public markets. As at October 2014, a total of 38 stalls were let out through short-term tenancy for three months, with 19 tenancies renewed for another three months, and 11 subsequently renewed for 30 months.
Apart from the above measures, FEHD also conducts monthly statistical survey and data analysis of the number of stalls let out, vacant and frozen in its public markets. It holds meetings of Market Management Consultation Committees on a regular basis to learn more about the actual operation of various markets, and explores with the relevant District Councils and other stakeholders the feasibility of implementing improvement measures such as consolidating floors or stalls and introducing light refreshment and service trade stalls. If no other alternative is considered feasible, we will actively explore the option of closing down or consolidating the operation of the markets concerned. Recently, the Mong Kok Market, Kwong Choi Market and Bridges Street Market were closed down, while stalls in the Peng Chau Market and Tang Lung Chau Market were re-arranged to vacate a floor each to serve other purposes.
On improving the operating environment of public markets, FEHD completed in the past three years ten enhancement projects involving a total outlay of about $31 million to enhance the facilities and competitiveness of public markets. Such enhancement works include upgrading of fire services installation, replacement of wall/floor tiles, upgrading of drainage, ventilation system and general lighting, and refurbishment of ceiling and toilets. FEHD also strives to keep the markets clean and conducts promotional activities regularly for public markets (including festive decorations and celebration activities, talks on food therapy and cooking demonstrations, exhibitions and open competitions) with a view to providing customers with a pleasant shopping environment.
(4) To improve the operating environment of public markets to facilitate fulfilment of their functions in a manner befitting their positioning, the Government has engaged a consultant to assist in developing improvement proposals. The consultant commenced the study in December 2013, and will survey certain representative markets and put forward concrete improvement proposals based on the merits of the markets' situation and the opportunities they have. The consultant will also make suggestions for the routine improvement works of public markets and for the preservation of market stalls that are selling traditional commodities or involving traditional specialty.
(5) We note the views on improving the management mode of markets. In fact the Government has also requested the consultant mentioned in part (4) of the reply to make in the study a comprehensive analysis of various factors affecting the operating environment of public markets, including the mode of market operation, current management constraints and manpower arrangements. In developing improvement proposals, we shall give due consideration to the opinions on the operation and management mode of public markets from all parties and the consultant's views.
Ends/Wednesday, November 26, 2014
Issued at HKT 13:45
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