TNAG-1614-FCO40-2222-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1987 — Page 17

1.

CONFIDENTIAL

Annex A

The Consequences to the Hong Kong Consumer of the Ng Fung Hong Proposals to Restructure

the Slaughtering Trade in Hong Kong

Purpose

This paper analyses and examines :

(a)

(b)

(c)

the implications of the Ng Fung Hong's proposals, with special consideration of the "monopoly" angle;

the implications on the effects of meat prices, and whether some Scheme of Control should be imposed as a condition of handing over the monopoly for protecting the Hong Kong consumer in a monopoly situation; and

the option of putting the package out to Open Tender.

Implications of the Ng Fung Hong proposals

2.

The advantages of the Hong's proposals are that they would enable the Government to rationalise its slaughtering policy, thereby

introducing orderly control of the slaughtering trade throughout the territory and continuing to guarantee stable supplies at a stable price;

assisting the Urban Council to privatise amicably its two abattoirs by involving the retail meat trade and dispensing with an expensive Government/Urban Council commitment to reprovision the abattoirs;

enabling the Cheung Sha Wan Abattoir to be closed and dispensing with the Ma Tau Kok Cattle Depot and Government Wharf, the Homantin and Hung Hon yards with their long-standing nuisances, whilst releasing valuable land for sale/ redevelopment;

removing the transporting and

slaughtering of livestock from Kowloon and upgrading the existing sub-standard meat transport fleet and operations.

CONFIDENTIAL