Replies to LegCo questions

LCQ8: New Agriculture Policy

Following is a question by the Hon Steven Ho and a written reply by the Secretary for Food and Health, Dr Ko Wing-man, in the Legislative Council today (March 2):

Question:

The Chief Executive has indicated in this year's Policy Address that the Government will implement a new agriculture policy to promote the modernisation and sustainable development of local agriculture. However, some farmers have relayed to me that a number of development projects which are underway or being planned in the New Territories have reduced or will reduce the supply of land for livestock industry and agriculture while some fishermen have pointed out that related marine works projects have reduced or will reduce the waters available for fishing. They were concerned that such projects have affected the sustainable development of agriculture and fisheries. On the other hand, some members of the livestock industry have pointed out that there are currently many cumbersome regulations for compliance by licensed livestock farms, making it difficult for livestock farms affected by development plans to identify suitable sites for relocation and continued operation. In this connection, will the Government inform this Council:

(1) of (i) the area of agricultural land, (ii) the area of agricultural land under active farming, (iii) the number of premises and vegetable market offices under vegetable marketing co-operative societies (VMCSs), and (iv) the number and the addresses of livestock farms, which were affected in the past five years or will be affected by development projects listed in the table set out in Annex 1;

(2) of the measures currently in place to assist farmers affected by development projects in agricultural rehabilitation, reprovisioning of their vegetable farms and agricultural structures, and relocation of their livestock farms, and to assist affected VMCSs in the relocation of their premises and vegetable market offices, as well as the details of such measures; regarding the development projects mentioned in (1), of the respective details of the special agricultural land rehabilitation schemes offered by the Government;

(3) whether the Government will consider introducing a land resumption policy of "rehousing before clearance" and increasing the current rate of allowance for reprovisioning of agricultural structures, so that farmers will have adequate funding to rebuild their agricultural structures; if it will not consider, of the reasons for that; whether it will improve the current work relating to field studies conducted for development projects (including carrying out such work in a low-profile manner) to avoid land owners, after learning about the related projects, prematurely terminating their land tenancy agreements with farmers for converting the sites for other uses in order to obtain more compensation; if it will, of the details; if not, the reasons for that;

(4) whether the Government will amend the Public Health (Animals and Birds) (Licensing of Livestock Keeping) Regulation (Cap. 139 sub. leg. L) so that livestock farms which have met the standards on disposal of livestock waste, when they are affected by development projects and have to be relocated, can find alternative sites for continuing their operations; if it will, of the details; if not, the reasons for that;

(5) as some fishermen have indicated that a number of marine works projects currently implemented for various development projects have seriously affected their livelihood, whether the Government will set up a "task force on reclamation, planning and works monitoring", to be led by the Chief Secretary for Administration and comprising the relevant directors of policy bureaux, to review Hong Kong's overall development planning and coordinate related complementary policies and measures (including compensation policy, etc.) so as to safeguard the interests and sustainable development of fisheries; if it will, of the details; if not, the reasons for that;

(6) whether it will consider formulating a policy to require that whenever the Government has to resume agricultural land for a development project, it has to provide compensatory agriculture land of the same site area for the purpose of agricultural rehabilitation for farmers so as to ensure the sustainable development of agriculture; if it will, of the details; if not, the reasons for that; and

(7) as some fishermen have relayed to me that they are disheartened by the current cumbersome procedures for applying for the Sustainable Fisheries Development Fund and the requirement that applications must be made in the name of companies or by academic and research institutions, whether the Government will streamline the application procedures of the fund, assist fishermen in going through the application procedures (e.g. allowing fishermen to apply for small grants by completing application forms and assisting them in preparing proposals for applying for larger grants), and cancel the requirement that applications must be made in the name of companies; if it will, of the details; if not, the reasons for that?

Reply:

President,

The Chief Executive announced in the 2016 Policy Address that the Government would implement the New Agriculture Policy (NAP) to promote the modernisation and sustainable development of local agriculture. The key initiatives under the NAP include establishing an Agricultural Park (Agri-Park), examining the feasibility of identifying farmland in the New Territories that has higher value for agricultural activities as Agricultural Priority Areas and setting up a $500 million Sustainable Agricultural Development Fund. We will also further strengthen support for farmers and assist them in moving up the value chain, facilitate produce marketing and brand building, and promote the development of leisure farming and education activities auxiliary to agriculture. We believe that these initiatives will help farmers improve their productivity and preserve farmland for agricultural purposes, which will be conducive to the sustainable development of the agricultural industry. In addition, the Government has been providing support for the local fisheries industry and in the past few years introduced a number of measures, including setting up the Sustainable Fisheries Development Fund (SFDF), to ensure its continued development.

In planning land development and undertaking public works projects, the Government will strive to minimise the impacts on residents and other stakeholders in the area. However, in cases where it is necessary to resume land for implementation of public works projects and release land for development purposes, some existing occupants and users of the land concerned will inevitably be affected, including farmers who may not be able to continue their agricultural practices in-situ. Under the Government's existing land resumption and clearance mechanism, there are established compensation arrangements to take care of the parties affected, including crop and livestock farmers. As for fishermen who lost their habitual fishing grounds due to marine works projects, the Government has also put in place a mechanism to provide, on compassionate grounds, an ex-gratia allowance to fishermen who fulfil certain eligibility criteria, for the purpose of relieving the burden on them.

My reply to the various parts of the question is as follows:

(1) The area of agricultural land and the number of vegetable marketing co-operative societies/vegetable depots and livestock farms affected by various development projects are set out in Annex 2.

(2), (3) and (6) Under the established mechanism, genuine farmers and livestock farm operators affected by land resumption and clearance stemming from public works projects may purchase or rent private agricultural land elsewhere to continue their operations. As for the vegetable marketing co-operative societies limited and vegetable depots affected, the Government will also liaise with them to understand thoroughly their requests for compensation and relocation with a view to working out a plan acceptable to parties concerned and mitigating the impacts of the development on farmers in the area.

Farmers and livestock farm operators who have needs for development and working capital may apply for low-interest loans from the Kadoorie Agricultural Aid Loan Fund and the J. E. Joseph Trust Fund administered by the Agriculture, Fisheries and Conservation Department (AFCD). The Lands Department will on a need basis review from time to time the amount of rehabilitation allowance payable.

For the Kwu Tung North, Fanling North and Hung Shui Kiu New Development Areas, and development in Yuen Long South, the Government is looking into launching a special agricultural land rehabilitation scheme to help farmers affected by these development projects. Under this scheme, the Government will identify landowners who are willing to lease or sell their land which is suitable for agricultural re-site/rehabilitation, and priority assistance will be given to matching these landowners with farmers affected. The Government will announce the details of the arrangements under the scheme in due course. As an initiative of the NAP, the proposed Agri-Park may, upon completion, accommodate eligible farmers who wish to continue farming but have been displaced by Government development projects that happen to take place within the same timeframe.

The current field inspection under the planning studies is conducted to ascertain the conditions of the land concerned so as to lay the groundwork for planning. At different stages of the planning studies, it is necessary for the Government to conduct public engagement activities and release relevant information to the public, during which the Government's development proposals are inevitably made known to different stakeholders. Land tenancy is a private agreement between landowners and farmers to which the Government is not a party. We have no locus to intervene.

(4) Currently, in the event that a licensed livestock farm is affected by Government development projects and the licensee wishes to consider relocation, he should look for a relocation site which fulfils the requirements set out in the Public Health (Animals and Birds) (Licensing of Livestock Keeping) Regulation (Cap. 139L) with regard to regulation over livestock keeping control, bio-security and environmental protection, the requirements under planning and lands legislation, and the relevant policy requirements. AFCD will help farmers in need to better understand the legal requirements and provide them with appropriate assistance.

The Government keeps an open mind about amending the existing requirements on relocation of livestock farms. In 2015, the Food and Health Bureau commissioned a consultant to study the future of the live poultry trade and make recommendations. Policy issues relating to poultry rearing in Hong Kong, including the legal requirements restricting the relocation of existing chicken farms, will be taken into consideration in the consultancy study. The consultancy study is expected to be completed in mid-2016. The Government will consult the public on the consultant's recommendations in charting the way forward.

(5) Currently, the Government's reclamation projects and other major marine works are planned and implemented by the relevant planning and works departments. The Development Bureau is responsible for formulating development policies, and monitoring and co-ordinating the implementation of the public works programme. Departments responsible for the projects will duly consult the bureaux and other Government departments concerned when implementing the projects so that all concerns are justly considered. The Government has also put in place an inter-bureaux/departmental mechanism to supervise the policies and other issues relating to development projects. Given that these arrangements have been working well, there is no need to establish another mechanism.

(7) The Government set up the SFDF to help fishermen adopt a sustainable and high value-added operation mode, and provide financial support for programmes and research so as to enhance the overall competitiveness of the industry. To ensure proper use of the public fund, we have taken into account the circumstances of the trade and studied the experience of other government funds when formulating the eligibility, assessment criteria and monitoring mechanism for the SFDF. The SFDF Advisory Committee established by the Government comprises members of the Legislative Council, representatives of the industry, professionals, academics and Government officials. It makes recommendations in respect of the overall strategy of the SFDF and the approval of individual projects. In vetting an application, the SFDF Advisory Committee will duly consider whether the project could help the local fisheries community rise to new challenges with a view to enabling the fisheries industry to develop or switch to a sustainable or high value-added mode of operations, thereby enhancing the overall competitiveness of the local fisheries industry.

Eligible applicants for the SFDF include legal entities that have demonstrated a close connection with the local fisheries industry, such as local incorporated companies, local registered fisheries co-operatives, non-profit-making fisheries organisations, non-governmental organisations or social enterprises, as well as academic and research institutions in Hong Kong. Individuals may form a legal entity to submit an application or make a joint application with the above organisations. So far, the SFDF has approved six applications with a total grant of about $28 million. Among these applications, two come from companies formed by fishermen, three are made by fisheries organisations jointly with local non-profit-making green groups or universities, and one is made by a local university. To help applicants understand the application procedures and assessment criteria, AFCD has prepared detailed application guidelines for the reference of interested parties since July 2014 when the SFDF started inviting applications. Moreover, AFCD provides assistance to applicants, including offering technical advice on their projects, explaining the application procedures and helping them file applications whenever necessary.

Ends/Wednesday, March 2, 2016
Issued at HKT 17:10

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CQ8 Annex 1
LCQ8 Annex 2