Link Reit to ‘slow down’ wet market policy
Two disputes in relation to sub-contracting flared up in February
Link Reit will slow down outsourcing the management of its fresh markets in Hong Kong after two disputes flared up in close succession last month, according to a representative of the company on Monday.
But the property investment trust remained defensive over its decision to let subcontractors operate its markets, which had been slammed by some of its tenants as a move to push the rent of market stalls to an “exorbitant” level, resulting in daily groceries costing more.
“We will certainly be less hurried [in outsourcing],” said Lo Bing-chung, corporate communications director of Link Asset Management, the property management arm of Link Reit, at a gathering with the press following a strike at its market in Tsing Yi, which ended a week ago.
Two weeks ago, more than 50 traders of Cheung Fat Market, fearing they would face rent increases and possible eviction, launched a strike to protest against management of the market being taken over by Uni-China (Market) Management.
According to Lo, Link Reit now outsources the management of about a third of its 85 fresh markets in the city to six companies.
One of them is Uni-China, which was embroiled in disputes with illegal hawkers trading outside Leung King Market in Tuen Mun during Lunar New Year.
READ MORE: Tsing Yi market traders strike over rent increase fears
Describing the disputes as “very unfortunate” to Link Reit, Lo said: “We have to outsource... We only have 900 employees and we are busy with our project [to revamp a commercial tower] in Mong Kok.”
He added allegations that Link Reit preyed on traders and residents of public housing estates, home to many of the company’s markets, were exaggerated.
“People say we preyed on small businesses. But, in reality, many aren’t small businesses. Many traders run multiple stalls in one market and we know it. Some wet market merchants are richer than you think,” he said.
“Many public housing estate residents are also quite well off. They didn’t need to worry about paying rent and have disposable income.”
READ MORE: Traders in Tsing Yi end strike but vow to fight on over management issues
At present, besides the markets owned privately by Link Reit, there are 76 public markets managed by the Food and Environmental Hygiene Department.
Democratic Party lawmaker, Wu Chi-wai, who sits on the housing panel of the Legislative Council, said Link Reit must confront the question over the standard of its subcontractors and could not simply leave the matter by just saying “it has to outsource”.
