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Following is a question by the Hon Chan Han-pan and a written reply by the Secretary for Food and Health, Dr Ko Wing-man, in the Legislative Council today (March 16):
Question:
Last month, the stall operators at Tsing Yi's Cheung Fat Estate Market under Link Asset Management Limited (the Link) launched a seven-day strike to urge the Link to shelve its plan to contract out the right to operate the market to a single operator. The strike caused inconvenience to the daily lives of residents nearby, but the stall operators felt helpless about it. Regarding the provision and management of public markets, will the Government inform this Council:
(1) of the respective numbers of public markets under the Food and Environmental Hygiene Department, the Link and other organisations at present;
(2) whether it will build public markets in new development areas or densely populated districts to provide venues for small operators to run business and to meet the shopping needs of the public; if so, of the details; if not, the reasons for that;
(3) given that the Link has contracted out the operating rights of its markets one after another to single operators and some of those operators have let their affiliated companies operate certain stalls in the markets they operate, thus arousing discontent among other stall operators, whether the Government will mediate such disputes; if it will, of the details; if not, the reasons for that; and
(4) whether an inter-departmental task force will be set up to deal with issues relating to public markets, including the operating environment of stall operators, the shopping needs of the public, etc.; if so, of the details; if not, the reasons for that?
Reply:
President,
The Link Asset Management Limited (Link), as a private entity, is entitled to rights over its properties and governed by relevant laws, conditions of land leases and other contractual terms, just like other private property owners. The Government cannot and will not interfere in Link's day-to-day operation and commercial decisions (including outsourcing the management of its properties), as long as Link is in compliance with the requirements of the laws and land leases as well as the contractual terms it made with other companies, organisations or individuals.
Having consulted the Transport and Housing Bureau, I set out below my reply to the four parts of the question:
(1) At present, the Food and Environmental Hygiene Department (FEHD) manages 101 public markets, including 76 public markets which mainly sell fresh provisions and other dry and wet goods, as well as 25 free-standing cooked food markets. There are 21 markets under the Hong Kong Housing Authority (HA). As regards the wet markets operated by Link, Link has been a private entity since its listing on November 25, 2005. The Government does not hold any units of Link. The business direction and day-to-day operation of Link are entirely independent of the Government. The Government does not keep information on the wet markets managed by Link. According to its website, there are 84 wet markets under Link.
(2) 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.
The prevailing Hong Kong Planning Standards and Guidelines with respect to the planning of public markets stipulate the relevant factors that are to be taken into consideration, including the population of the area (including the demographic mix), community needs, the presence of public and private market facilities nearby, the number of fresh provision retail outlets available in the vicinity and the public sentiment towards the preservation of hawker areas. This approach 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, the Planning Department will consult the relevant policy bureaux and departments, so as to ascertain whether there is a need to reserve land for public markets.
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 had 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 take into account all relevant factors, including 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.
(3) As previously pointed out by the Government at different Legislative Council meetings (including the recent meeting of the Panel on Housing on December 7, 2015), Link, as a private entity, is entitled to rights over its properties and governed by relevant laws, conditions of land leases and other contractual terms, just like other private property owners. The Government cannot and will not interfere in Link's day-to-day operation and commercial decisions (including outsourcing the management of its properties), as long as Link is in compliance with the requirements of the laws and land leases as well as the contractual terms it entered into with other companies, organisations or individuals. The Government will not intervene in the business operation of Link's outsourced contractors regarding its market stalls.
(4) The relevant bureaux and departments are responsible for matters related to public markets. The responsible authority will liaise and discuss with other relevant bureaux and departments when necessary.
Ends/Wednesday, March 16, 2016
Issued at HKT 20:31
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