TNAG-1614-FCO40-2222-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1987 — Page 9

building

refitting works at the abattoirs fall as a commitment on General Revenue and are not the responsibility of the Urban Council.) and

savings of mounting deficits to the Urban Council.

Economic implications

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At present, the Ng Fung Hong

the Ng Fung Hong already dominates. the market for fresh meat. Although the Hong's proposals will extend the Hong's dominance of the fresh meat trades, they are unlikely to have significant adverse economic implications for Hong Kong and should not lead to any substantial changes to the availability or cost of fresh meat to local consumers for the reasons given in paragraph 13. Further, the Hong has indicated that it has no objection to specifying as a condition of the deal the

the acceptance of local and third country animals for slaughtering. Free access to slaughter for Hong Kong reared and third country animals will be maintained.

Timetable

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The Urban Council is aware of the sensitivity of the consultations and negotiations involved, and prefers not to set a firm and binding timetable for this exercise. However, it aims to achieve the following:-

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(a)

(b)

(c)

detailed agreement to be reached with the meat trades on

the new operating consortium (consortia), on the terms and conditions, cost and phasing of the land grants, and on the statutory controls on the new system etc. within two years from early 1987;

agreement on redundancy terms with staff involved to be achieved within the same period; and

execution of the land grants to

to take place some time during 1989 or 1990.

Actual implementation of the scheme is expected to be in two phases. Sale and handover of the Kennedy Town Abattoir and the land at Tsuen Wan and Sheung Shui would take place in Phase I (hopefully 1989/90), but the Cheung Sha Wan Abattoir (and the live animal handling centres in Kowloon) can only be closed when the new slaughterhouse and animal handling centre at Sheung Shui, and the extensions to the Tsuen Wan Slaughterhouse (especially the animal landing pier), completed and operational in Phase II (by, say, 1992).

are

CONFIDENTIAL