LCQ15: Rental management of public market stalls
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Question:
A tenant who has successfully bid for a stall in the Sham Shui Po Jade Market (the Jade Market) has relayed that in the past, the term of tenancy agreements of stalls in the Jade Market was three years, and tenants might be arranged to renew tenancy agreements upon their expiry. However, the stall successfully bid by that tenant in June 2021 had a tenancy term of one year only, and as the tenancy agreement concerned stated that the tenant had no right to renew the tenancy agreement, he had to bid for a stall afresh in August 2022. Regarding the rental management of public market stalls, will the Government inform this Council:
(1) of the criteria adopted for determining whether the tenancy agreements of public market stalls may be renewed;
(2) as the aforesaid tenant has relayed that stalls put up for bidding at the open auction of public market stalls held in August 2022 only included stalls in operation, such practice was different from that in the past, of the criteria adopted for determining the number of stalls put up for bidding at open auctions; and
(3) given the persistent economic downturn brought about by the epidemic, whether the Government has formulated support measures to assist tenants of stalls in public markets (including the Jade Market); if so, of the details; if not, the reasons for that?
Reply:
President,
Public markets are municipal infrastructure. The tenancy of stalls in public markets should be allocated on an impartial basis. If there are vacant stalls suitable for renting by members of the public, the Food and Environmental Hygiene Department (FEHD) will let them out by means of open auction, etc.
The reply to the various parts of the question is as follows:
(1) Since 2020, no "automatic tenancy renewal" arrangement has been available for public markets stalls allocated through open auction or ballot. Tenancy of stalls, upon its expiry, will be handled according to the prevailing rental arrangements. The new arrangement is made having regard to the fact that "automatic tenancy renewal" reduces the chance for others to bid for the stalls and may undermine the motivation of tenants to actively operate their stalls, thus affecting the overall competitiveness of the markets. The new arrangement can put public resources to more effective use and provide business opportunities for members of the public. It is also in line with the recommendations of the Office of the Ombudsman on the operation of public markets in 2018.
(2) At the open auction of public market stalls held by the FEHD in August 2022, stalls put up for bidding not only included 173 stalls with a tenancy due to expire shortly (i.e. the stalls in operation as referred to in part (2) of the question), but also 136 vacant stalls.
Except for some stalls which cannot be let out due to market development (e.g. to support works or reprovisioning arrangements, the Market Modernisation Programme and market closure/consolidation plans etc.), the FEHD will put all suitable market stalls up for bidding by the public.
(3) In view of the impact of the epidemic and the economic environment on the tenants' business, the Government has provided support for the tenants of public market stalls (including stalls in Sham Shui Po Jade Market) on a number of occasions since October 2019, including providing 50 per cent rental concessions from October 2019 to March 31, 2020, and 75 per cent rental concessions from April 1, 2020, to June 30, 2023.
In addition, the FEHD held three rounds of open auction for vacant public market stalls in 2021. A one-year tenancy was initially set for these stalls. Having considered the actual circumstances and the views of the relevant stakeholders, the FEHD has also made a one-off arrangement under which the tenancy has been extended by four months on a discretionary basis, so as to allow the tenants to operate their business for a longer period of time.
Ends/Wednesday, January 18, 2023
Issued at HKT 11:15
Issued at HKT 11:15
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