Speech at Council Meeting-Members’ Motion ”Reviewing the development strategy for public markets“

Motion on “Reviewing the development strategy for public markets”

President, the increase in the vacancy rate of public markets is not something happening over the past one or two years.  In the Audit Commission’s review of the operation of public markets as early as 2003 and 2008, it was found that some market stalls had been left vacant for a long time or were not in operation.  Subsequently, the Government introduced a number of measures to enhance the operating environment and competitiveness of markets.  However, and the overall occupancy rate of stalls has still been on a decline, dropping from 91% in 2014 to 82% last year.  We are grateful to Mr YANG Wing-kit for proposing the motion, which allows the Government to review the development strategy for public markets once again.

Over the past decade or so, Hong Kong’s retail market has undergone radical changes, as the emergence of low-priced supermarkets or chain shops selling meat, fruits, vegetables and frozen food in various districts has changed the sales pattern in the districts.  These shops are more convenient to access as they operate on rented street shops, and they offer a wide range of products at low prices, so most members of the public would like to patronize them.  Stalls in public markets are small in scale and most of them are operated with a small capital base, and the goods sold there may not be cheaper than those of street shops, thus reducing people’s incentive to shop there.  In addition, a number of Honourable colleagues have earlier mentioned the prevalence of online shopping and going north for groceries, as well as the dilapidated facilities and inadequate management of markets not yet overhauled or refurnished.  Just as what Mr LAM Chun-sing mentioned just now and what I read from a newspaper, a famous media personality has pointed out in his column that the escalator in the To Kwa Wan Market has been damaged for half a year and has not yet been repaired, and a lot of elderly people who used to shop there have found that it is not as easy to access as before, so the business of the stalls has been greatly affected.  Stall owners are unable to continue operating and are forced to surrender their tenancies one after another, exacerbating the market’s decline.

According to the information, the occupancy rate of four markets is less than 50%, namely the Yee On Street Market in Kwun Tong, the Quarry Bay Market in Eastern District as well as the Hung Shui Kiu Temporary Market and the Tung Yick Market in Yuen Long.  Apart from the Yee On Street Market which has been converted to primary healthcare related facilities, there is no indication that the Administration has any intention to convert or resume the other three markets.  This is a waste of public resources indeed.

The Government has been making slow progress in the planning of markets’ restructuring.  For example, the former Mong Kok Market has been closed for 10 years before being taken over by the Urban Renewal Authority, and the District Councils were consulted on the consolidation plan for the Sai Ying Pun Market and the Centre Street Market as well as the redevelopment plan for the Kwun Chung Market in 2021 and 2023 respectively, but there is no specific timetable or plan so far.  If there are bottlenecks in the planning process, I think the relevant departments should point them out as soon as possible, so that we can work together to explore ways to remove barriers and restrictions to speed up the progress.

If it is decided that a market should continue to operate, consideration should be given to whether the spatial planning should be adjusted, such as adopting a zoning model to enhance the efficiency of utilization.  Some areas can continue to allow the operation of stalls and maintain their original market functions, while others can be converted into public and community facilities, such as elderly activity centres, offices for District Council members or the Community Care Teams and recycling stores, so as to make full use of the community values of markets and provide more diversified services to local residents to ensure the effective use of resources.

Currently, market stalls are usually under a three-year tenancy, and stalls left vacant for a long time are usually located in quieter areas of a market.  Given the pressure of market changes and competition, it is difficult for new tenants to see any business prospects in those stalls, so they may not have the incentive to rent them.  Can the Government consider relaxing the application format?  For example, the first two terms of tenancy may last for 9 or 10 months before converting to a longer third term, say for two years.  With flexible tenancy and lower risk, it is hoped that entrepreneurs will be attracted to try out their business in markets.  In addition, the number of stalls rented by tenants should be appropriately relaxed, so that experienced tenants can expand their business, increase the variety of products and enhance their competitiveness.  This mode may increase the administrative cost of the Government, but it is worth considering, otherwise the stalls would be left vacant for a long time.

The Government should also conduct detailed assessment in the light of the demographic structure and business environment of various districts and re-examine the roles of public markets, so as to ensure that the development direction of public markets can adapt to the current market changes, and to strike a balance between the needs of the community and the effectiveness of public resources.

With these remarks, President, I support the original motion and the amendment.