Replies to LegCo questions

LCQ10: Measures to improve operating environment of public markets

Following is a question by the Hon Tam Yiu-chung and a written reply by the Secretary for Health, Welfare and Food, Dr Yeoh Eng-kiong, in the Legislative Council today (October 30):

Question:

In view of the economic downturn, weak consumer sentiment of the public and the operational difficulties experienced by tenants of public markets, will the Government inform this Council:

(a) whether it will implement measures to reduce the operating costs of the public market stall tenants when the rent-freeze period for public markets expires at the end of this year, thereby reducing people's daily expenses; if it will, of the details;

(b) whether it will lower the rentals of public market stalls, in particular those for commercial premises and stalls in old markets; if it will, of the details; if not, the reasons for that; and

(c) of the measures in place to improve the operating environment of public markets?

Answer:

(a) & (b) Stall rental is only one of a number of elements that make up the operating cost of public market stall tenants. There are other non-premises related operating expenses incurred by the tenants which are outside the control of the Government.

In 1998, the rentals of public market stalls were reduced by 30 per cent. Since then, the stall rentals for markets managed by the Food and Environmental Hygiene Department (FEHD) have been frozen at the 1998 level. As a result of the 30 per cent rental reduction and the freezing of rental since then, the current rentals for most public market stalls are far below the corresponding market rents, which the Rating and Valuation Department has assessed with due regard to the general drop in market rentals since 1998.

The Administration is subsidising the operation of FEHD-run markets at a rate of over $100 million per annum. We do not consider it appropriate to increase the subsidy beyond its current level which is already very significant by any standard, particularly in view of the forecasts of government revenue and expenditure.

(c) Apart from maintaining public markets in good conditions, the Administration carries out capital improvement works in a number of markets every year with a view to enhancing their operating environment. In 2001/2002, a total of nearly $100 million was spent on such capital works. The scope of improvement works covers:-

* upgrading of fire safety installations;

* improvement to electrical and mechanical installations such as lifts and escalators;

* improvement to ventilation systems;

* enhancement of illumination facilities in public areas notably market entrances and major passageways;

* replacement of floor tiles and/or lime-washing of internal walls and ceilings;

* face-lifting of market entrances and external walls,

* retro-fitting of facilities for the disabled;

* refurbishment of toilets; and

* improvement to surface drainage systems.

The actual list of improvement work items depends on the specific conditions and constraints of individual markets.

On top of the above improvement works, a Market Manager Scheme has been implemented in four markets since March 2002. Under this Scheme, FEHD recruits well-qualified and experienced property managers from the private sector to take charge of the day-to-day management of public markets. These managers are tasked to identify and implement measures to improve the operating environment of markets in consultation with the tenants concerned. FEHD will keep the Scheme under review and consider extending it to more markets as necessary.

We regard environmental improvement to public markets as a joint responsibility of the Government and incumbent stall tenants. By keeping their stalls clean, hygienic and tidy as well as enhancing the competitiveness of their goods and services in keeping with changing customer needs and behaviour, stall tenants can contribute significantly to improving the operating environment of public markets.

End/Wednesday, October 30, 2002
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