XN000022-1995-05-03 — Page 70

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Answers to the four specific points raised are:

(a) The Housing Department has guidelines for planning the number of supermarkets in public rental housing and HOS estates. In general, an estate with a population below 10,000 is unlikely to generate sufficient business to attract a supermarket operator, and no such provision is made. A supermarket measuring between 400m2 and 800m2 is normally provided in a new estate with a population of between 10,000 and 30,000. Two supermarkets may be provided if the population exceeds 30,000. Factors other than population, such as the number of supermarkets in the vicinity of the estate, are also taken into account in determining the number of supermarkets to be provided.

(b)

(c)

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(d)

A list of public rental housing and HOS estates with one supermarket is at Annex 1.

A list of public rental housing and HOS estates with no supermarket is at Annex 2.

The Housing Department lets commercial premises to supermarket operators by open tender, and will allow new operators to join provided they can offer a satisfactory service to residents. This practice is supported by the Consumer Council. In fact, major chain-store operators do not monopolise the operation of supermarkets in public rental housing and HOS estates, but also face competition from other operators and individual retailers. There is no evidence to show that the two large operators charge higher prices in supermarkets located in geographical districts where they have a larger market share. Indeed, if any operator is found to be abusing its dominating position or adopting a high pricing policy, the Housing Department will take appropriate action and may not renew the tenancy agreement of the operator concerned. Hence, the interests of consumers living in estates are adequately protected.

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