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Hawkers supply goods at lower prices, and thus help contain inflation and maintain the living standard of the lower social classes. Hawkers may also help suppress the demands of workers for high wages and this will have a positive effect on the accumulation of industrial capital.
The existence of so many hawkers everywhere shows considerable demands for their services. The public patronize the hawkers for the convenience they provide. In addition, the hawkers cater to the special shopping habit of the Chinese by providing them with all kinds of fresh food and daily commodities.
Hawkers indirectly lend support to the small factories and help provide job opportunities for the workers of the small factories. The large manufacturers too may give their samples, surplus goods and goods which have missed the shipping date to the hawkers for sale, so that all these goods will not be wasted and losses suffered. If these goods are quickly disposed of, the manufacturers will be able to save on storage charges.
From the view of resources utilization, the streets are not necessarily just for vehicular traffic and pedestrians. Under suitable conditions, some streets may be used by the hawkers. In this way, the resources of our society will be more effectively utilized.
B. Negative functions
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In a city where industries are highly developed, the hawkers will be competing with the industrials in a number of areas. For example, the occupation of land by a large number of hawkers will certainly affect the supply of land. Also, when factory hands shift to work as hawkers, the supply of labour will be reduced, leading to the rise of wages and increases in the costs of production. This is unfavourable to competition in foreign markets. Nowadays, world industries are becoming more and more sophisticated and on-job training for the workers is often required, but if the workers can make a good living by hawking, they will not go back to the factories for technical training. This will lower the standard of industrial sophistication in Hong Kong and adversely affect its industries.
Since hawkers do not need to pay taxes, rents, and expenses on water and electricity, etc., they can charge a cheaper price which is unfair to the factory and shop owners who have to pay taxes and rents.
Hawkers do not pay taxes, but government has to spend a large amount of money on their management and resettlement. So the public are subsidizing the hawkers since government expenditure on hawkers comes from taxes and rates.
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Hawkers need only a small capital to start business. The profits earned will not be used to enlarge the scale of business but only on general expenses. Therefore, it is unfavourable to the accumulation of capital and further development.
Hawkers will no doubt cause problems to the public, such as unfair competition to factory and shop owners, adverse effects on environment, traffic and hygiene, and consumption of public funds for their management. These are a drain on the resources of the society and it is unfair to the whole community.
C. Suggestions put forward by the Joint Working Group
1. To ban on-street hawking if circumstances permit;
2. To enforce strict control over on-street hawkers in order to minimize the nuisances caused;
3. To restrict street trading to small scale business and to license the long established hawkers;
4. To reduce progressively the subsidy for hawker management;
5. To improve the quality and efficiency of the General Duties Teams and to recruit capable persons by offering them higher wages;
6. To educate the public not to purchase goods from the unlicensed hawkers but from those stipulated shopping places;
7. To conduct extensive surveys through the District Offices to collect public opinions and try to solicit support from the District Boards and the public of government's new policies;
8. To co-ordinate the work of the government departments concerned and liaise with the Judiciary so as to deal with the unlicensed hawkers in an appropriate manner;
9. The District Boards may propose suitable areas for setting up temporary hawker permitted areas where circumstances allow but unqualified and unlicensed hawkers as well as those who may cause public risk are to be banned;
10. At present, social benefits in Hong Kong are insufficient, so hawker licensing policies should be related with social welfare. Since unemployment is a waste of human resources and the aged and the weak should be cared for, it is proposed that licences should be issued to these people. On the one hand, they may earn their own living while on the other, the burden of social welfare expenditure may be lessened;
11. To encourage hawkers to form street committees responsible for the maintenance of discipline and order, and to manage their own affairs;
12. To strengthen co-ordination with the District Boards, Labour Department and Social Welfare Department so as to assist hawkers to shift to other occupations. The Urban Council may act as the central co-ordinating body in setting up licensing guidelines;
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