HONG KONG URBAN COUNCIL
Some of the markets under the Housing Authority are now managed by private companies. The result so far seems to be quite good. Cost effectiveness of the markets and flexibility seem to have improved, more people have been attracted to shop there. In short, the target for improvement seems to have been reached. I am not saying here that the Council should join in this privatisation exercise. I am asking the Council to take account of that experience and contract out the management of selective markets to private companies. The companies should take up the same duties as the existing management staff of the Council. They include four areas:
1. To ensure operation in a suitable, clean and orderly way;
2. To maintain close liaison with work staff so that markets can be suitably maintained;
3. To ensure relevant tenancy agreements are complied with; and
4. To improve market operating conditions.
At present, USD not only takes up the above duties in respect of market management, but is also responsible for law enforcement. When carrying out the privatisation plan, the related management job stipulated in law can be assigned to the private management company which will be responsible for monitoring and making reports to the Department. When necessary, Departmental staff will take out formal prosecution. In fact, contracting out urban services to private companies is not a brand new idea. Some of our street cleansing services are already handled by private companies. In carrying out this plan, we have noticed a lot of positive progress. The quality of street cleanliness has been maintained and a lot of public money has been saved. Our four cleaning contracts with outside companies saved over $44 million for the Council in the past three years. Privatised management plans should be a new impetus to the Council's market management system and a new direction towards solving a series of problems.
First of all, to look after their own business interests, private management companies will have better initiative to improve measures when they review the subject. As companies have more experience in running commercial ventures, the quality of management will be enhanced and more cost effective strategies will be implemented.
On the other hand, because of their relative independence, private management companies can handle the relationship between management and traders more effectively and with higher flexibility. The tolerant management method adopted by the Department in the past has resulted in less than thorough enforcement of tenancy conditions and management work. Privatisation does away with direct interference by the Department in management and avoids unnecessary confrontation with traders.
Also, privatisation instills flexible operating methods, changes people's impression of UC markets, brings in promotion elements and attracts more people to shop. As such, market operating conditions will improve and tenants
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Page 62 of 498
Page 62 of 498
Page 62 of 498
Page 62 of 498
62
HONG KONG URBAN COUNCIL
Some of the markets under the Housing Authority are now managed by private companies. The result so far seems to be quite good. Cost effectiveness of the markets and flexibility seem to have improved, more people have been attracted to shop there. In short, the target for improvement seems to have been reached. I am not saying here that the Council should join in this privatisation exercise. I am asking the Council to take account of that experience and contract out the management of selective markets to private companies. The companies should take up the same duties as the existing management staff of the Council. They include four areas:
1.
2.
3.
To ensure operation in a suitable, clean and orderly way;
To maintain close liaison with work staff so that markets can be suitably maintained;
To ensure relevant tenancy agreements are complied with; and
4. To improve market operating conditions.
At present, USD not only takes up the above duties in respect of market management, but is also responsible for law enforcement. When carrying out the privatisation plan, the related management job stipulated in law can be assigned to the private management company which will be responsible for monitoring and making reports to the Department. When necessary, Departmental staff will take out formal prosecution. In fact, contracting out urban services to private companies is not a brand new idea. Some of our street cleansing services are already handled by private companies. In carrying out this plan, we have noticed a lot of positive progress. The quality of street cleanliness has been maintained and a lot of public money has been saved. Our four cleaning contracts with outside companies saved over $44 million for the Council in the past three years. Privatised management plans should be a new impetus to the Council's market management system and a new direction towards solving a series of problems.
First of all, to look after their own business interests, private management companies will have better initiative to improve measures when they review the subject. As companies have more experience in running commercial ventures, the quality of management will be enhanced and more cost effective strategies will be implemented.
On the other hand, because of their relative independence, private management companies can handle the relationship between management and traders more effectively and with higher flexibility. The tolerant management method adopted by the Department in the past has resulted in less than thorough enforcement of tenancy conditions and management work. Privatisation does away with direct interference by the Department in management and avoids unnecessary confrontation with traders.
Also, privatisation instills flexible operating methods, changes people's impression of UC markets, brings in promotion elements and attracts more people to shop. As such, market operating conditions will improve and tenants
Page 62 of 498
Page 62 of 498
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