Replies to LegCo questions

LCQ8: Licences for selling meat

Following is a question by the Hon Yeung Sum and a written reply by the Secretary for Health, Welfare and Food, Dr Yeoh Eng-kiong, in the Legislative Council today (June 25):

Question:

Currently, fresh provision shops have to apply for relevant licences for selling different types of meat and pay annual fee for each of such licences. However, the fee levels of licences for selling meat in the urban areas and in the New Territories ("NT") are different. In this connection, will the Government inform this Council:

(a) whether cost recovery is the criterion adopted for setting the fee levels of such licences; if so, why the fee levels of licences for selling meat in the urban areas and in NT are different; if not, the authorities' criteria for setting the fee levels of such licences;

(b) when it will standardize the fee levels of licences for selling meat in the urban areas and in NT; and

(c) whether it will streamline the classification of licences for selling meat, so that people engaging in the relevant trade can sell different types of meat under one single licence; if it will, when the streamlining will be implemented; if not, the reasons for that?

Reply:

(a) In view of the subdued economy over past few years, the Government has frozen the licence fees for fresh provision shops (FPSs) since they were last revised by the then provisional municipal councils (PMCs). Cost-recovery was one of the criteria adopted by the PMCs when setting the level of fees for FPS licences. Due to the difference in operating costs across regions and a unilateral 30% fee reduction made by the Provisional Urban Council in November 1998, the licence fees for FPSs in the New Territories are higher than those applicable to the urban area.

(b) On 23 April 2003, the Chief Executive announced a package of measures to relieve the impact of the outbreak of Severe Acute Respiratory Syndrome (SARS) on various sectors. This included a 6-month moratorium on government fee revision. It is our plan to work towards alignment of the FPS licence fees for the New Territories and urban area upon expiry of this moratorium. We will take into account, inter alia, the overall economic conditions and the views of the relevant LegCo Panel in drawing up a timetable for this alignment exercise.

(c) FPS licensees are allowed to sell different types of meat including beef, mutton, pork, fish, poultry and reptiles under a single licence. The licence fee payable is proportional to the number of types of meat offered for sale, subject to a ceiling equivalent to four times the licence fee for selling a single meat item. We will consider streamlining the classification of the FPS licences in the context of the alignment exercise mentioned above.

End/Wednesday, June 25, 2003
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