Replies to LegCo questions

LCQ6: Yau Ma Tei Fruit Market

Following is a question by the Hon Starry Lee and a reply by the Secretary for Food and Health, Dr York Chow, in the Legislative Council today (June 24):

Question:

Report No. 48 of the Director of Audit published in April 2007 criticised the authorities that so far they had not implemented the plan to relocate the Yau Ma Tei (YMT) Fruit Market which was decided in 1969. For many years, the YMT Fruit Market is operating all night every day, causing serious traffic and environmental nuisances (especially that of noise) to the residents and drivers in the vicinity. Through the efforts of the Working Group on Concern for the Yau Ma Tei Fruit Market under the current Yau Tsim Mong District Council, the differences between the District Council and fruit traders have basically been resolved. The trade representatives also indicated clearly a year ago that they agreed to move out conditionally. In this connection, will the Government inform this Council:

(a) whether the Government has commenced negotiation and discussion with Kowloon Fruit and Vegetable Merchants Association Limited since the latter indicated its willingness to move out; if it has, when such negotiation was conducted and the present progress; if not, the reasons for that; whether the Food and Health Bureau has commenced the relevant work in accordance with the "Indicative Timetable for Relocating the YMT Fruit Market" submitted to the Public Accounts Committee of this Council in January 2008; if it has commenced work, of the details; if not, the reasons for that;

(b) whether the Development Bureau and the Commerce and Economic Development Bureau have commenced a study on the proposal to create a global fresh fruit trading centre in the new fruit wholesale centre, which has been put forward several times in recent years by the fruit wholesale trade; whether this will be discussed, facilitated and developed in the context of the relocation of the YMT Fruit Market; if so, of the details; if not, the reasons for that; and

(c) regarding the present grave situation of noise nuisance and obstruction of roads due to the operation of the fruit market between 9pm and 8am in Yau Ma Tei District, what solutions the government departments concerned have and their details, and how the departments curb the spread of such illegal acts to other lots?

Reply:

President,

The Yau Ma Tei Fruit Market (YMT Fruit Market) has a long history. As it mainly operates at night, this has indeed caused some disturbance to the nearby residents. As early as in 1990, the Government had planned to relocate the YMT Fruit Market to Phase II of the Cheung Sha Wan Wholesale Food Market which was then expected to be completed by the end of 1997. Later, having considered the views of the Audit Department and the Public Accounts Committee (PAC) of the Legislative Council on the need to make best use of the land of Phase II of the Cheung Sha Wan Wholesale Food Market, the Government proposed to construct a wholesale food market complex for relocating the YMT Fruit Market and the Cheung Sha Wan Temporary Wholesale Poultry Market. Funding approval was successfully sought from the Finance Committee of the Legislative Council for this proposal. However, when private developers were invited to compete through open tender for the construction project, only a sub-standard tender was received. The Government subsequently decided to develop the wholesale food market complex on its own to accommodate wholesalers of five trades, namely wholesalers of vegetable, egg, fish, live poultry and fresh fruit. Yet, the relevant wholesalers opposed the idea of a wholesale food market complex strongly and unanimously on the ground that the idea would cause serious traffic problems and conflicts among wholesalers in their business operation.

In light of the views of the wholesalers, the Government searched for alternative sites for the relocation of the YMT Fruit Market in 2000 to 2001, but fresh fruit wholesalers expressed their unwillingness to move away from the urban area, arguing that sites outside the urban area were inconvenient. However, it is difficult to identify suitable sites in the densely populated urban area.

Though many fresh fruit wholesalers wished to continue their operations at the existing site, the Government could not neglect the wish of the local residents living in the vicinity of the YMT Fruit Market to relocate the fruit market early. Therefore, in 2007, we put to the PAC that a part of the Cheung Sha Wan Wholesale Food Market Phase II should be reserved for constructing a separate fresh fruit wholesale market for relocating the YMT Fruit Market.

Subsequently, the Food and Health Bureau, Agriculture, Fisheries and Conservation Department and the Yau Tsim Mong District Office (YTMDO) had a number of discussions with the trade and conducted site visits to Phase II of the Cheung Sha Wan Wholesale Food Market. They also discussed the relocation issue with various stakeholders through different channels, including meetings of and public seminar organised by the Yau Tsim Mong District Council's working group. Representatives of the trade, including the Kowloon Fruit and Vegetable Merchants Association which mainly represented the fruit traders, attended the above meetings and public seminar and gave their views.

During our discussion with the trade, we provided relevant information and proactively responded on various subjects and suggestions. Issues discussed included sites for the new market and the supporting public transport and traffic arrangements, etc. As we planned to cater for the needs of the trade through market design as far as possible, we had, for a number of times, invited trade representatives to assist in collecting and consolidating the views of the trade and provide information on the actual area and facilities required as well as other relevant needs. However, we have not received any response from the trade thus far.

On the other hand, a trade association once put forward that one of the main conditions for fresh fruit wholesalers to voluntarily move out of YMT was that in the future, all fresh fruit wholesale businesses in Hong Kong must be conducted at the new market. We considered this suggestion unacceptable.

This is because under the free market policy, distribution arrangements for fruits imported into Hong Kong (either through wholesale or direct sale) should be determined by market demand, and it will not be appropriate for the Government to interfere. If all fresh fruit wholesalers, including traders now operating outside the YMT fruit market in an orderly and lawful manner, are compelled to operate in the new market through licensing requirements or other means, not only will this contradict the Government's established policy of providing a business friendly environment and promoting fair competition in a free economy, the retail cost of fruits will also increase, to the detriment of consumers.

Moreover, if it becomes a mandatory requirement that all wholesaling of fresh fruits in Hong Kong must be restricted to one particular market, not only will this immediately affect merchants who wholesale their fruits by other means and those who acquire fruits through other channels, this may even give rise to unfairness and create an unnecessary obstacle for those who are interested in joining the trade in the future.

Although we consider the conditions proposed by the association unacceptable, we remain open to other arrangements of the relocation. As mentioned before, we hope the trade will soon provide us with information on the actual area and facilities required as well as other relevant needs, so that discussions can be commenced as soon as possible.

To address the nuisances caused by the operation of the fruit market, relevant government departments, including the Police as well as the Food and Environmental Hygiene Department, will continue to take necessary enforcement actions. The YTMDO will continue to monitor the environmental hygiene condition of the neighbouring streets of the fruit market and co-ordinate the efforts of the relevant departments to remedy the problems as and when necessary, including coordinating joint departmental clean-up operations along the neighbouring streets of the fruit market.

Furthermore, since mid-2006, the Lands Department has let the site at the junction of Ngo Cheung Road and Hau Cheung Street to wholesalers of the YMT Fruit Market by way of short term tenancy for loading and unloading purpose. This arrangement can alleviate the road obstruction problem caused by the loading and unloading activities of the trade. The departments concerned will continue to monitor the situation and discuss the relocation of the YMT Fruit Market with the trade through the relevant District Council working group.

Thank you, President.


Ends/Wednesday, June 24, 2009
Issued at HKT 16:16

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