HONG KONG PROVISIONAL URBAN COUNCIL
549
Members of the ADPL support both Mr. CHEUNG Yu-yan's motion and Mr. Wong Chung-ki's amended motion. However, there have been drastic changes with a remarkable difference between the situation in January and that in February. The market situation is getting more difficult and if we were to help stall lessees in the Council's markets and cooked food centres prepare for rainy days, just freezing the rentals would not be of much use. The ADPL has therefore proposed further amendments, urging Members to consider reducing the rentals paid by the stall lessees as a kind of support and assistance.
Given the general weak economic situation in Hong Kong, it is understandable that the stall lessees should request rental reduction in order to survive in these difficult times. A study of the budget of the Finance Select Committee indicates that acceptance of this request is not entirely impossible. Rental reduction would of course affect part of the Council's revenue, but 82% or $6,190m of the Council's current total income of $7,543m comes from rates while the remaining 18% comes from rentals of the Council's shops, licence fees, charges for services provided by the Council, admission fees and hire charges of cultural activities, food kiosks, swimming pools and stadiums. Hence, the impact brought about by reducing the rentals of our shops on our sources of revenue is in fact very limited.
On the other hand, our stall lessees have a pressing need for rental reduction. Regrettably, the request of the Pei Ho Street Market lessees was not considered by the Select Committee in January. Before moving the motion this time, we interviewed the stall lessees of not only the Shamshuipo market but also the market in Hunghom. Of the 140 respondents, 35%, who were shop-owners, indicated that their turnover in the past three months had dropped 30% while 40% admitted their turnover had dropped 40%. It is obvious that lessees of our market shops and cooked food centres are now shouldering a very heavy financial burden. From their viewpoint, the general public naturally are worried lest our services would be affected by the drop in income, since the quality might have to be determined strictly by the tight budget. And as indicated by the information that the Finance Select Committee has, a large part of the Council's expenses (over 60%) is on staff remuneration and there is hardly any room for saving in this area.
As for the other activities of the Council, such as construction of venues and facilities, they are also what the public are most concerned about. In fact, it is very difficult for us to consider reduction measures in these areas. After reducing the rentals payable by the stall lessees without undermining our services, if we could seek additional provision from the Central Government to make up for the loss in income as a result of freezing or reducing the rentals, it would certainly be conducive to the provision of services and facilities in the coming year. We have therefore proposed further amendments to Mr. Wong Chung-ki's amended motion, in the hope that our colleagues in the Council
Page 555 of 654.
Page 555 of 654.
Page 555 of 654.
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Page 555 of 654
HONG KONG PROVISIONAL URBAN COUNCIL
549
Members of the ADPL support both Mr. CHEUNG Yu-yan's motion and Mr. Wong Chung-ki's amended motion. However, there have been drastic changes with a remarkable difference between the situation in January and that in February. The market situation is getting more difficult and if we were to help stall lessees in the Council's markets and cooked food centres prepare for rainy days, just freezing the rentals would not be of much use. The ADPL has therefore proposed further amendments, urging Members to consider reducing the rentals paid by the stall lessees as a kind of support and assistance.
Given the general weak economic situation in Hong Kong, it is understandable that the stall lessees should request rental reduction in order to survive in these difficult times. A study of the budget of the Finance Select Committee indicates that acceptance of this request is not entirely impossible. Rental reduction would of course affect part of the Council's revenue, but 82% or $6,190m of the Council's current total income of $7,543m comes from rates while the remaining 18% comes from rentals of the Council's shops, licence fees, charges for services provided by the Council, admission fees and hire charges of cultural activities, food kiosks, swimming pools and stadiums. Hence, the impact brought about by reducing the rentals of our shops on our sources of revenue is in fact very limited.
On the other hand, our stall lessees have a pressing need for rental reduction. Regrettably, the request of the Pei Ho Street Market lessees was not considered by the Select Committee in January. Before moving the motion this time, we interviewed the stall lessees of not only the Shamshuipo market but also the market in Hunghom. Of the 140 respondents, 35%, who were shop- owners, indicated that their turnover in the past three months had dropped 30% while 40% admitted their turnover had dropped 40%. It is obvious that lessces of our market shops and cooked food centres are now shouldering a very heavy financial burden. From their viewpoint, the general public naturally are worried lest our services would be affected by the drop in income, since the quality might have to be determined strictly by the tight budget. And as iindicated by the information that the Finance Select Committee has, a large Ipart of the Council's expenses (over 60%) is on staff remuneration and there is Ihardly any room for saving in this area.
As for the other activities of the Council, such as construction of venues and Ifacilities, they are also what the public are most concerned about. In fact, it is wvery difficult for us to consider reduction measures in these areas. After reducing the rentals payable by the stall lessees without undermining our services, if we could seek additional provision from the Central Government to make up for the loss in income as a result of freezing or reducing the rentals, it would certainly be conducive to the provision of services and facilities in the coming year. We have therefore proposed further amendments to Mr. Wong Chung-ki's amended motion, in the hope that our colleagues in the Council
Page 555 of 654.
Page 555 of 654
Page 555 of 654
Page 555Page 556
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