# HONG KONG URBAN COUNCIL
## MOTION
1. DR. ELSIE TU, CHAIRMAN of the Markets and Street Traders Select Committee, moved the following motion (in English):- Mr. Chairman, I rise to move the motion standing in my name.
'RESOLVED that the Hawker (Urban Council) (Amendment) By-laws 1988 be made under section 83A of the Public Health and Municipal Services Ordinance, Cap. 132.'
The Hawker (Urban Council) (Amendment) By-laws, 1988 increase the fees for hawker licences and for the allocation of fixed pitches with effect from 1 August 1988. The new fees for the issue and renewal of hawker licences are shown under Part I of the amended schedule to the principal by-laws while the new fees for the allocation of fixed pitches are shown under Part III of the same schedule.
The proposed increase would, overall, match the increase in costs, which has occurred in the administration of licensed hawkers since the 1987 fee increase. The aim is to restore the level of Urban Council subsidy to the management of licensed hawkers to that established by the 1987 increase.
The actual total operating cost for the management of all hawkers, licensed and unlicensed, for 1987-88 was $228 million, with revenue of only $45 million. This produced a deficit of $182 million.
The costs relating to licensed hawkers only are calculated to have increased from $110 million for 1987-88 to $116 million for 1988–89, i.e. an increase of 5.3 per cent and therefore a general overall increase of 5.3 per cent is proposed for the combined licence and pitch fees. This basis is proposed because the total costs of hawker management have increased, and will continue to do so, for reasons such as protection of new markets from illegal hawkers, which have little to do with the management of licensed hawkers and therefore should not be financed entirely from hawker licence fees.
However, it is proposed that two types of hawker licences should be treated differently. The first affects the highest fees and is proposed to correct the anomaly caused by the highest fees always being increased by very large amounts when a flat percentage basis is applied ‘across-the-board'. This results in them being increased disproportionately in comparison with the general level of fees. The fees in this category are those for Fixed Pitch (Cooked Food or Light Refreshment) and Itinerant (Mobile Van) licences, and it is proposed that these should not be increased in 1988.
The second category arises from the need for certain itinerant hawker licence fees to be increased more than the general increase in order to reflect their ramifications for hawker control and the requirements of public policy. In this case the proposed increase may sound a lot in percentage terms, but is calculated on a very small base, namely the present fee of $500. This will increase to $610, and in practical terms only amounts to an increase of 30 cents a day. It should also be considered in the light of Council's new policy to up-grade all itinerant hawker licences to fixed pitch status as soon as possible, and to drastically reduce, if not eliminate altogether, the category of itinerant hawker licence.
The fee increase before you, made on the basis of the percentage increase in hawker management costs relating only to licensed hawkers, would produce additional revenue during 1988-89 of $2.4 million and increase total hawker licence revenue to $48 million. The deficit, or subsidy, for the management of licensed hawkers would in relative terms be restored to that set by the 1987 fee increase. The deficit in respect of the full costs on hawker management and control would increase to $223 million.
The hawker licence and pitch fee increase now proposed, Mr. Chairman, has been agreed by the Markets and Street Traders and Finance Select Committees. It would take effect on 1 August this year, thereby giving sufficient time for the hawkers to make financial arrangements, to meet the increase.
Sir, with these remarks, I beg to move.
MR. LAM CHAK-PIU, VICE-CHAIRMAN OF THE MARKETS AND STREET TRADERS SELECT COMMITTEE, seconded the motion (in Cantonese):— Mr. Chairman, I second the motion.
The question was put.
The motion was carried unanimously.
## ADJOURNMENT - 3.00 p.m.
CHAIRMAN (in English):--- That concludes the business of today's meeting. The Council stands adjourned until Tuesday, 14 June 1988 at 2.30 p.m.
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MOTION
HONG KONG URBAN COUNCIL
1. DR. ELSIE TU, CHAIRMAN of the MarketS AND STREET TRADERS SELECT COMMITTEE, moved the following motion (in English):-Mr. Chairman, I rise to move the motion standing in my name.
'RESOLVED that the Hawker (Urban Council) (Amendment) By-laws 1988 be made under section 83A of the Public Health and Municipal Services Ordinance, Cap. 132.'
The Hawker (Urban Council) (Amendment) By-laws, 1988 increase the fees for hawker licences and for the allocation of fixed pitches with effect from 1 August 1988. The new fees for the issue and renewal of hawker licences are shown under Part I of the amended schedule to the principal by-laws while the new fees for the allocation of fixed pitches are shown under Part III of the same schedule.
The proposed increase would, overall, match the increase in costs, which has occurred in the administration of licensed hawkers since the 1987 fee increase. The aim is to restore the level of Urban Council subsidy to the management of licensed hawkers to that established by the 1987 increase.
The actual total operating cost for the management of all hawkers, licensed and unlicensed, for 1987-88 was $228 million, with revenue of only $45 million. This produced a deficit of $182 million.
The costs relating to licensed hawkers only are calculated to have increased from $110 million for 1987-88 to $116 million for 1988–89, i.e. an increase of 5.3 per cent and therefore a general overall increase of 5.3 per cent and therefore a general overall increase of 5.3 per cent is proposed for the combined licence and pitch fees. This basis is proposed because the total costs of hawker management have increased, and will continue to do so, for reasons such as protection of new markets from illegal hawkers, which have little to do with the management of licensed hawkers and therefore should not be financed entirely from hawker licence fees.
However, it is proposed that two types of hawker licences should be treated differently. The first affects the highest fees and is proposed to correct the anomaly caused by the highest fees always being increased by very large amounts when a flat percentage basis is applied ‘across-the-board'. This results in them being increased disproportionately in comparison with the general level of fees. The fees in this category are those for Fixed Pitch (Cooked Food or Light Refreshment) and Itinerant (Mobile Van) licences, and it is proposed that these should not be increased in 1988.
The second category arises from the need for certain itinerant hawker licence fees to be increased more than the general increase in order to reflect their ramifications for hawker control and the requirements of public policy. In this
HONG KONG URBAN COUNCIL
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case the proposed increase may sound a lot in percentage terms, but is calculated on a very small base, namely the present fee of $500. This will increase to $610, and in practical terms only amounts to an increase of 30 cents a day. It should also be considered in the light of Council's new policy to up-grade all itinerant hawker licences to fixed pitch status as soon as possible, and to drastically reduce, if not eliminate altogether, the category of itinerant hawker licence.
The fee increase before you, made on the basis of the percentage increase in hawker management costs relating only to licensed hawkers, would produce additional revenue during 1988-89 of $2.4 million and increase total hawker licence revenue to $48 million. The deficit, or subsidy, for the management of licensed hawkers would in relative terms be restored to that set by the 1987 fee increase. The deficit in respect of the full costs on hawker management and control would increase to $223 million.
The hawker licence and pitch fee increase now proposed, Mr. Chairman, has been agreed by the Markets and Street Traders and Finance Select Committees. It would take effect on 1 August this year, thereby giving sufficient time for the hawkers to make financial arrangements, to meet the increase.
Sir, with these remarks, I beg to move.
MR. LAM CHAK-PIU, VICE-CHAIRMAN OF THE MARKETS AND STREET TRADERS SELECT COMMITTEE, seconded the motion (in Cantonese):—Mr. Chairman, I second the motion.
The question was put.
The motion was carried unanimously.
ADJOURNMENT-3.00 p.m.
CHAIRMAN (in English):---That concludes the business of today's meeting. The Council stands adjourned until Tuesday, 14 June 1988 at 2.30 p.m.
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