REVISION OF HAWKER LICENCE FEES

3.40 p.m.

Mr E.W. Barker: Mr Speaker, Sir, in the Addendum to the President's Speech at the Opening of the Fourth Parliament, Honourable Members were informed that the licence fees for markets, food centres and street hawkers would be revised.

These licence fees were last revised in 1970 but were and are still less than the economic rental. Since then, the cost of maintaining and building new markets and food centres has increased. It is felt that hawkers should pay their share of these higher costs. Government has therefore decided to revise the licence fees.

The proposed revision is set out in three Schedules (Cols. 191 - 196) which have been circulated to Members and should be lying on their seats. The revision will rationalise some of the fees for markets and food centres eliminating the discrepancy in the fees paid by stallholders to the Ministry of the Environment and to the Housing and Development Board. Schedules - EXISTING AND PROPOSED MONTHLY FEES FOR MARKETS/HAWKER CENTRES, EXISTING AND PROPOSED FEES FOR STREET HAWKERS, MISCELLANEOUS FEES (Cols. 191 - 196)

The increases will be introduced in three phases, in January 1978. January 1979 and January 1980. The licensees will thus be able to absorb the increases without suffering undue hardship. Care has been taken to relate the proposed fees to the sale and profit margins of different goods. For example, retail vegetable licensees whose commodities are perishable and less profitable will pay less than the cooked food, fruit and piece and sundry goods hawkers. The licence fees for poultry hawkers will be higher because their business occupies more space, poses greater pollution and maintenance problems and their profit margins are higher.

Cooked food, fruit and piece and sundry goods hawkers in the Ministry of the Environment's markets and food centres pay licence fees for two sessions. However, these hawkers in H D B markets and food centres, at present, pay rental equivalent to the licence fee for one session only. It is proposed to do away with this discrepancy. Henceforth, all such hawkers in HDB markets and food centres will pay the same fees as those in the Ministry's markets and food centres.

However, for street hawkers, fees will continue to be charged on a per session basis, because for a number of these sites, the hours of hawking have to be stipulated and restricted as the sites are required for other uses such as car parks.

Sir, in the first phase of the revision, about 13,000 or 50% of the total number of our hawkers will pay an additional $5 per month, about 5,300 or 23% roughly, will pay an additional $10 per month, and the remainder an additional $15 to $60 per month. Vegetable, egg, bean cake and noodle, assorted ground spices and sea food hawkers will only pay a small increase of $5 per month.

These modest increases are spread over three years and should not justify any increase in the prices of hawkers' goods.

Mr Ho See Beng: Mr Speaker, Sir, would the Minister be able to inform this House whether this measure to increase hawker licence fees is being introduced just because the hawkers have not been paying income tax? Or whether the Government has plans to introduce measures to make the hawkers pay income tax.

Mr Barker: Sir, I have set out the reasons for the increase plainly and clearly. It has got nothing to do with income tax. Some feel that those few hawkers who make a lot of money rightly should pay income tax. My own view is that the majority should not pay income tax. But this is not for me to decide. A proper question directed to the proper quarters will get a correct answer.

Dr Augustine Tan: Mr Speaker, Sir, I notice from the Schedule of the proposed revision that the Ministry of the Environment hawker centres and markets have got two classes, namely, Class A and Class B, whereas the HDB hawker centres and markets have only one class, not specified. In the proposed revision, there are again two categories, Class A and Class B. May I ask the Hon. Minister how will the HDB hawker centres and markets be classified? That is my first question.

The second question is: would the Minister consider classifying the hawker centres and markets in Whampoa under Class B?

Mr Barker: Sir, the Ministry's hawker centres have been divided into Class A and Class B because some hawkers make more money than others. They are, in fact, classified according to districts. For instance, in the central area the hawkers are classified as Class A whereas the hawkers in the rural areas make less money and therefore are classified as Class B.

As for the HDB ones, I do not know the details. The fees are set out in the Schedule. For instance, Retail Vegetable, HDB, the existing fee is $15; for the Ministry of the Environment, the existing fee for Class A is $15 and for Class B it is $10. With the revision, it will be $20 for Class A and $15 for Class B in the first phase. I presume that the HDB ones will be in Class A.

As for the hawker centres in Whampoa, I am afraid I do not have the details. Perhaps some are in Class B and some are in Class A. But I could look into their cases and tell the Member concerned whether his centres are classified under Class A or Class B.

Dr Augustine Tan: Mr Speaker, Sir, since most of my markets and hawker centres (in fact, three out of four) are under HDB's jurisdiction, they would naturally be classified under Class A. But, as you know, Sir, Whampoa is a very poor constituency. Would the Hon. Minister then have compassion on the poor hawkers there and classify them under Class B?

Mr Barker: Mr Speaker, Sir, I wish I could. But I am not the Minister in charge of the Housing and Development Board. I used to be. Since then I have moved to the Environment Ministry. Once again, I am not passing the buck. But the decision is not mine. Perhaps the Minister for National Development will consider kindly the request of the Member for Whampoa.