Secretary for Food & Health Dr York Chow has lowered the response level for avian flu to "alert" from "serious" after assessing the present risk the virus poses and environmental hygiene at retail outlets.

The measure to ban overnight stocking of live poultry in retail outlets has been in place since live chicken sales resumed July 2, to cut the risk of avian flu outbreaks.

The market operation was generally smooth and the environmental hygiene of retail outlets upgraded. Samples collected from chicken farms, wholesale market and retail outlets have been confirmed avian flu H5N1-free.

On the proposed buyout package, Dr Chow said most live poultry retailers will opt to wind up their business, while some may want to remain in the trade. Some farmers, wholesalers and transporters may also choose to stay in the trade.

He said the Government will assess the package's manpower implications for Government departments, but expected it will not significantly cut their workload.

Of the 52 poultry farmers in Hong Kong, 21 are operating on government land. If they choose to leave the trade the Lands Department will be informed to follow up. The Cheung Sha Wan Temporary Wholesale Poultry Market will be returned to the department if the trade no longer uses it.

As at July, 90 live poultry stalls in Food & Environmental Hygiene Department markets have been allowed to sell chilled poultry. If tenants of the other 170 live poultry stalls want to switch to selling chilled poultry, they can submit their applications and the department. Subject to actual demand in the market the department will consider letting out vacant live poultry stalls for the chilled poultry trade.