Replies to LegCo questions

LCQ4: Public markets

Following is a question by the Hon Alice Mak and a reply by the Secretary for Food and Health, Dr Ko Wing-man, in the Legislative Council today (October 31):

Question:

The former Secretary for Food and Health had stated that there were two main aspects in the government policy on markets: first, to pay close attention to whether or not the provision of public markets was adequate and make every effort to meet public demand in general; and second, to strive to improve market facilities and create a desirable, clean and hygienic business environment for market stall operators on the premise of putting public resources to rational use. In this connection, will the Government inform this Council:

(a) whether the authorities had set up any new public markets in the past three years; if so, of the number of new markets set up each year and their locations; if not, the reasons for that; whether the authorities have any plans at present to set up new markets; if so, of the details; if not, the reasons for that;

(b) whether the authorities will review the existing planning guidelines for new development areas to incorporate the principle of ensuring the public to have appropriate and diversified consumer choices, so as to facilitate consideration of the need to set up public markets in new development areas; if so, of the details; if not, the reasons for that; and

(c) how the authorities assessed the public's demand for public markets in the past; whether the authorities have conducted any survey on the operating environment and commodity prices in various types of markets, so as to ensure that small business operators have room for survival and the public have abundant choices in consumption, thereby reducing the situation of consumers being exploited because of monopoly?

Reply:

President,

My consolidated reply to the three parts of the question raised by the Hon Alice Mak is given below.

At present, the Food and Environmental Hygiene Department (FEHD) is responsible for managing a total of 102 public markets and cooked food markets, including 77 public markets which mainly provide fresh food and other dry and wet goods, as well as 25 free-standing cooked food markets. Some 14 450 stalls are provided in these public markets with an average occupancy rate of 88.8%.

Historically, the former municipal councils and FEHD built public markets mainly for the purpose of relocating hawkers from the streets, in the interest of improving environmental hygiene. These markets provided places for residents living nearby to buy daily necessities. The Government has since ceased to issue new hawker licences and now that we are encouraging itinerant hawkers to surrender their licences, the number of licensed hawkers has been decreasing gradually. As a result, the need to build public markets for the purpose of relocating hawkers has been greatly reduced.

Meanwhile, the number of markets in public and private housing estates as well as the number of retail outlets selling fresh provisions and live seafood in different districts have been growing over the years, while supermarkets have also provided more retail outlets for fresh provision and live seafood. At present, apart from the 2 635 stalls selling fresh provisions and live seafood in public markets, there are up to 2 700 other licensed fresh provision shops and supermarkets. Together, they provide diverse choices for consumers.

In its previous reports on the planning and operation of public markets, the Audit Commission pointed out that the Government should, when planning the provision of new public market facilities, consider carefully the question of viability and cost-effectiveness in order to ensure that public resources are put to appropriate and effective use. In 2009, the Planning Department also made revisions to that part of the "Hong Kong Planning Standards and Guidelines" pertaining to the provision of public markets. Under the revised guidelines, it is suggested that apart from the population in the district concerned, other relevant factors should also be taken into account, including demographic mix, community needs, the availability of public and private market facilities nearby, the number of fresh provision retail outlets in the vicinity, and public sentiment towards preservation of hawker areas, etc.

Having duly considered the various factors mentioned above, FEHD has not brought in any new public markets over the past three years. Nor is there any plan for a new public market in the pipeline.

The Government will assess as appropriate the need to review the planning standards for the provision of public markets in keeping with present day circumstances and developments.

On improving the operating environment of public markets, FEHD has in the past three years completed ten enhancement projects involving a total outlay of over $170 million. To improve the competitiveness of public markets, FEHD has also strived to keep the markets clean, thereby providing customers with a pleasant shopping environment. In addition, promotional activities are held in different markets from time to time.

We now turn to the prices of the goods. Tenants of public markets are free to determine and adjust the prices of their goods having regard to such market forces as supply and demand, as well as their operating costs. The Government does not control the prices of the goods sold in public markets and is not in a position to guarantee that the goods sold in public markets would be cheaper than those in other shops. In fact, according to the Consumer Council's monthly report on market food prices released in November 2010, among the 52 markets covered in the survey, the price indices of 25 markets were higher than the average prices and among them, 20 were public markets under FEHD's management.

Besides the provision of public markets, it is open to us to consider other options that may help meet the shopping needs of local residents. For instance, having regard to the unique circumstances of Tin Shui Wai, the Government is collaborating with a non-government organisation on operating a bazaar in the vicinity of Tin Sau Road in northern Tin Shui Wai. Not only would this provide local residents with an added choice in terms of shopping venue, it would help drive economic growth and create job opportunities in the district. The Government will continue to closely monitor the overall situation including the supply of the respective facilities in various districts and review the relevant policies as and when appropriate.

Thank you.


Ends/Wednesday, October 31, 2012
Issued at HKT 15:12

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