Replies to LegCo questions
LCQ16: Public markets
Following is a question by the Dr Hon Elizabeth Quat and a written reply by the
Secretary for Food and Health, Dr Ko Wing-man, in the Legislative Council today
(November 26):
Question:
The Audit Commission (Audit) conducted reviews on the management of public
markets under the Food and Environmental Hygiene Department (FEHD) in 2003 and
2008, revealing that there were quite a number of long-standing vacant or
non-trading stalls in the markets and making recommendations for improvement to
FEHD. However, it has been recently reported that the aforesaid situation has
not improved at all. In this connection, will the Government inform this
Council:
(1) of the current vacancy rate in each public market;
(2) given that public market stall tenants who use their stalls for storage
purposes and not for trading are in breach of the tenancy agreements, of the
measures to be taken by FEHD to curb this situation;
(3) whether FEHD has any new measures to increase the customer flow of those
markets with a high vacancy rate in order to improve their business environment,
and whether the Government has any plan to redevelop these markets for other
uses in order to make optimal use of public resources; if it does, of the
details; if not, the reasons for that;
(4) as it is suggested that the Government should, by making reference to the
operation mode of Shang Yin Shui Chan fish market in Taiwan, redevelop some
public markets in the urban areas and turn them into new attractions, thereby
revitalising these markets, whether the Government will study the feasibility of
the suggestion; if it will, of the details; if not, the reasons for that; and
(5) as there are views that the Government should contract out the management of
public markets to the private sector in order to enhance the management
efficiency, whether the Government will study if such a practice is feasible; if
it will, of the details; if not, the reasons for that?
Reply:
President,
At present, there are 101 public markets under the management of the Food and
Environmental Hygiene Department (FEHD), including 76 public markets that sell
mainly fresh provisions and other dry and wet goods, as well as 25 standalone
cooked food markets.
My reply to the various parts of the question is as follows:
(1) As at September 30, 2014, the 101 public markets mentioned above provide a
total of 14 440 stalls, with a vacancy rate of about 9%. For the vacancy rate of
each market, please refer to the Annex.
(2) In the past, many public markets were used to accommodate on-street hawkers.
As many of these stalls are small in size, stall operators need extra space for
storage. To cater for their actual needs, long-standing vacant stalls and stalls
in less attractive locations are designated for storage purposes for lease by
stall operators. However, such an arrangement is only applicable to operators
running their business in the same market. On the other hand, for stall
operators who fail to operate as required under the terms of tenancy or wilfully
use their stalls for storage without permission, FEHD will take appropriate
actions against them for breaches of tenancy agreements. FEHD staff inspect
markets on a daily basis to ensure compliance with tenancy terms. From 2003 to
October 2014, FEHD issued a total of 252 warning letters and terminated the
tenancy agreements of 16 stalls due to breaches of tenancy terms in operation.
Moreover, FEHD will conduct an in-depth review of the operation of public
markets and consider shutting down markets with a high vacancy rate.
(3) The occupancy of public markets is influenced by many factors, such as
competition from retail outlets selling similar commodities in the vicinity and
demographic changes in the district. FEHD has been seeking to improve the
environment and ancillary facilities of public markets, in order to attract
patronage, enhance competitiveness and improve the operating conditions of
stalls. In order to better utilise stalls that have been left vacant for a long
time because of their poor locations, FEHD has, since February 2009, put in
place lower upset auction prices at 80% and 60% of the open market rental for
stalls which have been left vacant for six months and eight months respectively.
This is aimed at enhancing the stalls' attractiveness. As at October 2014, a
total of 2 539 stalls were let out through this arrangement. In addition,
starting from July 2009, FEHD has gradually introduced service trades, light
refreshment and bakery stalls into public markets for service diversification.
Under this scheme, a total of 122 stalls were let out for these services as at
October 2014. In October 2010, FEHD also started to let out small stalls through
short-term tenancy on a trial basis to allow more flexibility for prospective
tenants so as to increase the occupancy rate of public markets. As at October
2014, a total of 38 stalls were let out through short-term tenancy for three
months, with 19 tenancies renewed for another three months, and 11 subsequently
renewed for 30 months.
Apart from the above measures, FEHD also conducts monthly statistical survey and
data analysis of the number of stalls let out, vacant and frozen in its public
markets. It holds meetings of Market Management Consultation Committees on a
regular basis to learn more about the actual operation of various markets, and
explores with the relevant District Councils and other stakeholders the
feasibility of implementing improvement measures such as consolidating floors or
stalls and introducing light refreshment and service trade stalls. If no other
alternative is considered feasible, we will actively explore the option of
closing down or consolidating the operation of the markets concerned. Recently,
the Mong Kok Market, Kwong Choi Market and Bridges Street Market were closed
down, while stalls in the Peng Chau Market and Tang Lung Chau Market were
re-arranged to vacate a floor each to serve other purposes.
On improving the operating environment of public markets, FEHD completed in the
past three years ten enhancement projects involving a total outlay of about $31
million to enhance the facilities and competitiveness of public markets. Such
enhancement works include upgrading of fire services installation, replacement
of wall/floor tiles, upgrading of drainage, ventilation system and general
lighting, and refurbishment of ceiling and toilets. FEHD also strives to keep
the markets clean and conducts promotional activities regularly for public
markets (including festive decorations and celebration activities, talks on food
therapy and cooking demonstrations, exhibitions and open competitions) with a
view to providing customers with a pleasant shopping environment.
(4) To improve the operating environment of public markets to facilitate
fulfilment of their functions in a manner befitting their positioning, the
Government has engaged a consultant to assist in developing improvement
proposals. The consultant commenced the study in December 2013, and will survey
certain representative markets and put forward concrete improvement proposals
based on the merits of the markets' situation and the opportunities they have.
The consultant will also make suggestions for the routine improvement works of
public markets and for the preservation of market stalls that are selling
traditional commodities or involving traditional specialty.
(5) We note the views on improving the management mode of markets. In fact the
Government has also requested the consultant mentioned in part (4) of the reply
to make in the study a comprehensive analysis of various factors affecting the
operating environment of public markets, including the mode of market operation,
current management constraints and manpower arrangements. In developing
improvement proposals, we shall give due consideration to the opinions on the
operation and management mode of public markets from all parties and the
consultant's views.
Ends/Wednesday, November 26, 2014
Issued at HKT 13:45
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LCQ16 Annex