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LCQ14: Planning of public markets
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     Following is a question by the Hon Alice Mak and a written reply by the Secretary for Food and Health, Dr Ko Wing-man, in the Legislative Council today (March 16):

Question:

     The Planning Department (PlanD) revised the Hong Kong Planning Standards and Guidelines (HKPSG) in April 2009 by deleting the population-based planning standard for public markets (i.e. one public market stall should be provided for every 55 to 65 households or approximately 40 to 45 stalls per 10 000 persons) and adding a basket of considerations, i.e. "...provision of new public markets should be considered on a case-by-case basis to ensure the efficient use of public resources.  Apart from the population of the area, other relevant factors that should also be considered include the demographic mix, community needs, provision of both public and private market facilities nearby, number of fresh provision retail outlets in the vicinity, and public sentiment towards preservation of the hawker areas in the particular locality".  On the other hand, as mentioned in this year's Policy Address, the Government "will also formulate plans to improve, alter the use of or vacate individual public markets and cooked food centres".  In this connection, will the Government inform this Council:

(1) whether PlanD had conducted any public consultation on the aforesaid revisions to HKPSG; if so, of the details (including the number of public hearings held, the number of submissions received and, among the submissions, the number of those which objected to such revisions); if not, the reasons for that;

(2) as public markets are currently classified as "retail facilities" in HKPSG, whether the authorities will re-classify public markets as "community facilities" and stipulate that a public market must be provided in each community; if they will, of the details; if not, the reasons for that;

(3) of the reasons why the Government has not built any new public market since 2009; whether the authorities will review the current standard for the provision of public markets in HKPSG; if they will, of the details; if not, the reasons for that;

(4) whether it received any proposals of building new public markets put forward by District Councils in the past five years; if it did, of the District Councils concerned and the locations of the proposed public markets, as well as the reasons why such proposals have not been adopted so far; and

(5) of the criteria adopted by the Government for formulating plans to alter the use of or vacate individual public markets; the public markets the uses of which will be altered or which will be closed down in the coming three years, and the number of such public markets, as well as the anticipated number of stalls which will be affected; whether it will build new public markets while implementing such plans to avoid a decrease in the number of public market stalls; if it will, of the details; if not, the reasons for that?

Reply:

President,

     The Hong Kong Planning Standards and Guidelines (HKPSG) stipulates general guidelines for determining the scale, location and site requirements of various land uses, community facilities and infrastructures according to the population and other factors.  The relevant guidelines aim to serve as general reference to ensure that, during the land use planning and development processes, the Government will reserve adequate land for different planned uses and facilities in new towns, new development areas and other land development projects.  The compilation of the HKPSG is coordinated by the Planning Department (PlanD).  The relevant bureaux and departments will formulate, review and update the relevant planning standards in a timely manner, having regard to the policies under their purview and development needs.

     There are 101 public markets under the management of the Food and Environmental Hygiene Department (FEHD), including 76 markets (with cooked food centres in 39 of them) and 25 stand-alone cooked food markets.

     Having consulted the Development Bureau and PlanD, I set out below my reply to the five parts of the question:

(1) to (3) The Food and Health Bureau conducted a policy review on public markets in 2007-2008 which concluded that the future provision of new public markets should be considered on a case-by-case basis to ensure efficient use of public resources.  Apart from the population of the area in question, other relevant factors that should be considered include the demographic mix, community needs, the presence of market facilities nearby, the number of fresh provision retail outlets available in the vicinity, and public sentiment towards the preservation of hawker areas in the particular locality.  The Government consulted the Panel on Food Safety and Environmental Hygiene of the Legislative Council and all District Councils on the review findings in 2008.  As a result of the policy review, those parts concerning public markets in Chapter 6 of the HKPSG (which deals with retail facilities) were amended in April 2009 and have remained in force since then.  The revised HKPSG is based on a more holistic consideration of all relevant factors, rather than just the size of the population, in the planning of public markets.  When preparing or reviewing town plans, PlanD will consult the relevant policy bureaux and departments, so as to ascertain whether there is a need to reserve land for public markets.  We will, in the light of social developments and the actual situation on the ground, assess the need to review the planning guidelines for public markets as and when appropriate.

     Our focus is on facilitating convenient access on the part of the public to retail outlets in their neighbourhood for meeting their daily needs on food and other necessities.  Currently, there exists a variety of channels for the public to purchase fresh food.  Apart from public markets, many members of the public when purchasing fresh food may choose to patronise markets, supermarkets and various types of retail outlets operated by other public and private entities. Customer preference for different shopping venues in purchasing fresh food may evolve in tandem with changes in socio-economic circumstances, lifestyles, purchasing power and various other factors.

     Providing a new public market requires the use of Government land and entails public financial commitment. Therefore, in considering whether a public market should be built, we have to duly assess the need for the market and cost effectiveness in order to ensure that public resources are put to proper use.  In fact, in the face of fierce competition and changing circumstances in individual communities, some public markets are facing relatively high vacancy rates and low customer flows.  Also, the Audit Commission has in previous reports pointed out that, given the high cost of constructing a new public market, the relevant principles should be strictly adhered to.

     In considering whether new public markets should be provided in individual districts, we would continue to take into account the abovementioned planning standards and guidelines, the actual situation of individual districts and the views of stakeholders, to ensure that public resources are put to proper use.

     Among the views requesting the provision of new public markets, we notice that many of them assume that the goods sold in public markets managed by FEHD are cheaper than those sold in markets managed by other organisations and supermarkets.  However, this assumption has not been supported by facts.  Insofar as the prices of the goods sold in public markets are concerned, tenants of public markets are free to determine and adjust the prices of their goods having regard to market forces (e.g. operating costs, supply and demand, prices of similar goods sold nearby). The Government does not control the prices of the goods sold in public markets. Nor is the Government in a position to guarantee that the goods sold in public markets would be cheaper than those in other shops.

(4) In recent years, the District Councils of Islands District, Sai Kung, North District and Yuen Long have proposed providing public markets in Tung Chung, Tseung Kwan O, Fanling and Tin Shui Wai respectively.  It is noted that in most of the cases, markets facilities and other fresh provision retail shops already exist in the vicinity of those areas at which new public markets are proposed to be provided.  Taking into consideration the abovementioned planning standards and guidelines and the actual situation of individual districts, we currently have no plan to provide new public markets in the above districts.
  
(5) To enhance the patronage of existing public markets, as an on-going initiative, FEHD conducts various promotional activities.  These include thematic exhibitions and workshops, festive celebration activities, display of multi-language recipes.  In addition, FEHD will appropriately let out long-standing vacant stalls at reduced upset auction prices and bring in a greater variety of service trade stalls to enhance the occupancy rate of public markets.  Furthermore, in addition to regular maintenance and daily management of markets, FEHD carries out improvement works in relevant markets to enhance their operating environment. Depending on the circumstances, these works may include improvement to the drainage, ventilation, lighting, fire services and signage, replacement of floor tiles, refurbishment of toilets and the provision of barrier free access.

     Nonetheless, as a result of demographic changes, new development/redevelopment projects and competition from other fresh provision outlets, the appeal of some public markets has diminished, leading to reduced patronage and high vacancy rates.

     When assessing the viability of these markets and considering whether they are to be closed, FEHD will look into a host of factors, including vacancy rate, prospects for improvement, availability of alternative sources of fresh provision outlets in the vicinity, the likely cost-effectiveness of upgrading works and the views of the relevant district councils etc.  In the absence of feasible enhancement measures that may render the continued operation of the market viable in business terms, FEHD will consult the relevant district councils and affected market tenants on the closure of markets with low patronage.  Before closing a public market, FEHD will formulate exit plans for the relevant tenants according to the established policy and past practice.  

     The Government is actively following up improvement works in several public markets to enhance their competitiveness.  At the same time, the Government will also formulate plans to improve, alter the use of or vacate individual public markets and cooked food centres, in order to ensure that land resources are put to proper use.

Ends/Wednesday, March 16, 2016
Issued at HKT 20:32

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