The Government announced today that it has streamlined administrative procedures by relaxing the arrangement for the food businesses covered by three types of licences to apply for the Offensive Trades Licence (OT Licence) under government leases with immediate effect.

Currently, if a government lease contains an offensive trades clause, which prohibits the carrying out of the trades of sugar baker, oilman, butcher, victualler and tavern keeper on the lot and the premises thereon, the owner of such premises must obtain an OT Licence from the Lands Department in order to operate a food business.

Having considered the operation of the existing mechanism and stakeholders' views, the department will relax the arrangement for applying for the OT Licences in respect of specified licensed food businesses.

The new arrangement covers food businesses that obtained one or more of the statutory licences including a general restaurant licence or a light refreshment restaurant licence granted by the Director of Food & Environmental Hygiene, or a liquor licence granted by the Liquor Licensing Board.

If their premises are subject to the offensive trades clause under the government lease, an OT Licence will automatically be deemed to be granted to the premises' owner by the department with no application and relevant fee required.

The new system aims to foster a facilitating business environment for the food business industry by relaxing existing barriers and reducing the time and cost required for setting up a food business.

An OT Licence deemed to be granted by the department under the new arrangement will remain in force as long as the statutory food business licence is also in force.

The department explained that upon the expiration or cancellation of the statutory licence, such an OT Licence shall automatically cease to have effect, and the original offensive trades clause under the government lease shall resume to be applicable to the premises.

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