XN000022-1985-07-12 — Page 22

FRIDAY, JULY 12, 1985

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EXPLAINING THE DEPARTMENT'S PRESENT POSITION ON THE ISSUE THE ACTING ASSISTANT DIRECTOR OF REGIONAL SERVICES (HEADQUARTERS), MR PETER CHEUNG, SAID ALL STALLS IN PUBLIC MARKETS IN THE NON-URBAN AREAS ARE LET OUT BY AUCTION, WITH AN UPSET PRICE DETERMINED BY THE DEPARTMENT HAVING REFERENCE TO THE CURRENT MARKET RATE (CMR) OF THE STALLS AS ASSESSED BY THE COMMISSIONER OF RATING AND

VALUATION.

MR CHEUNG SAID THAT IN OPEN AUCTIONS, THE UPSET PRICE IS NORMALLY SET AT 100 PER CENT OF THE CMR. IN RESTRICTED AUCTIONS, WHICH ARE HELD PURSUANT TO A RESITING EXERCISE OF HAWKERS OR DISPLACED MARKET LESSEES, THE UPSET PRICE IS REDUCED.

+ INITIAL MARKET LEASES NORMALLY ARE FOR THREE YEARS. ON THE EXPIRY OF THE LEASE, THE OPERATOR OF THE STALL IS GIVEN THE OPTION TO RENEW HIS CONTRACT FOR ANOTHER THREE YEARS. THE NEW RENT ON SUCH AN OCCASION IS DETERMINED BY THE DEPARTMENT HAVING REGARD TO THE UPDATED CMR AND THE POLICY OBJECTIVE OF EVENTUALLY CHARGING ALL MARKET STALL HOLDERS A COMMERCIAL RENT,+ MR CHEUNG ADDED.

IN NORMAL CASES, THE DEPARTMENT'S PRACTICE IS TO SET THE NEW RENT AT 100 PER CENT OF THE CMR. BUT IN THE CASE OF STALLS OBTAINED THROUGH A RESTRICTED AUCTION, A CONCESSION IS MADE THAT THE RENT INCREASE IN ANY ONE YEAR IS NOT TO EXCEED 100 PER CENT AND THAT THE REVISED RENT WILL NOT EXCEED 50 PER CENT OF THE CMR IN THE FIRST YEAR OF THE NEW CONTRACT, 75 PER CENT IN THE SECOND, AND 100 PER CENT IN THE THIRD.

ON A RELATED SUBJECT, THE COUNCIL DECIDED TO SET THE UPSET PRICES FOR COOKED FOOD STALLS AT THE NEW MUI WO COOKED FOOD MARKET, WHICH WILL BE READY FOR OCCUPATION IN OCTOBER, AT 50 PER CENT OF CMR (RANGING FROM $1 250 TO $1 650) AND THAT FOR MINI STALLS AT 45 PER CENT ($337.50).

BRIEFING THE COUNCIL, ASSISTANT DIRECTOR (ENVIRONMENTAL HYGIENE), MR LI TIN-MING, SAID THE MARKET CONSISTS OF 16 COOKED FOOD STALLS AND FOUR MINI STALLS. IT IS INTENDED TO ACCOMMODATE SIX STATIC COOKED FOOD HAWKERS NOW OPERATING IN STRUCTURES ON A PIECE OF CROWN LAND NEAR THE MU! WO FERRY PIER AND 26 MOBILE HAWKERS TRADING IN THE VICINITY.

WHEN THE MARKET IS READY FOR OPERATION, THE STALLS WILL BE LET BY RESTRICTED AUCTION TO THE HAWKERS IN THE AREA. SUCCESSFUL BIDDERS WILL BE OFFERED A THREE-YEAR TENANCY AGREEMENT WITH A FLAT MONTHLY RENTAL THROUGHOUT THE TENANCY PERIOD.

THE COUNCIL DECIDED TO SET THE UPSET PRICES OF THE STALLS BELOW THE CMR IN ORDER TO ALLEVIATE THE HARDSHIP OF THE HAWKERS AT THE RESITING STAGE, A COUNCIL SPOKESMAN SAID.

+THIS SCHEDULE OF RENTALS WAS ARRIVED AT AFTER TAKING INTO CONSIDERATION THE VARIOUS FACTORS AND WITH PARTICULAR REFERENCE TO THE FACT THAT BUSINESS IN THIS NEW COOKED FOOD MARKET IS SEASONAL AND DEPENDS MAINLY ON PICNIKERS DURING WEEKENDS AND HOLIDAYS, THE SPOKESMAN ADDED.

THE DATE OF THE RESITING EXERCISE WILL BE DETERMINED AS SOON AS THE NEW MARKET IS COMPLETED AND HANDED OVER TO THE DEPARTMENT FOR MANAGEMENT. ELIGIBLE BIDDERS WILL BE INFORMED OF THE DETAILS OF THE RESITING ARRANGEMENTS IN DUE COURSE.

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