Health chief out to cool tempers in urn-space row
Joyce Ma 4B (20)
Jocelyn Ching 4C (8)
Scarlett Chiang
The government is considering a voluntary registration system to deter columbarium operators
from breaching land- use terms.
Secretary for Food and Health York Chow Yat-ngok yesterday told a Legislative Council hearing
that a voluntary registration system will make information more transparent and protect those
seeking spaces for urns from illegal columbarium operators.
Chow was responding to Democrat Kam Nai-wai who said an estimated 10,000 customers were
affected when the Lands Department demanded some columbariums halt their operations for
breaching the terms of their land leases.
Asked whether the government should set up a licensing system for private columbariums, Chow
said they have not imposed any specific regulations since human ashes pose neither health nor
environmental hygiene concerns.
However, Civic Party lawmaker Tanya Chan Shuk-chong said a clear-cut set of policies is needed
because demand for urn spaces has been huge.
A wild scramble broke out in September when spaces were put up for sale at Ching Chung Koon in
Tuen Mun.
The temple offered 1,000 new spaces for HK$50,000 to HK$200,000 each and about 100 people
who had queued for 30 hours refused to give up their places when operators opted for a raffle
system instead of allocating on a first-come, first-served basis.
Chow, however, said it is difficult to assess the demand for public and private columbarium niches
because it depends on public acceptance of scattering ashes in gardens or in other places.
He also said some foreign practices are not applicable to Hong Kong, citing as example countries
like Japan where cremation is compulsory.
"As for the culture in Hong Kong, it is difficult to force cremation on all the people."
Chow said government estimates put the total annual number of deaths and cremations in the next
10 years at about 47,700 and 43,900, respectively, based on past data.
There are about 167,900 public columbarium niches in Hong Kong , all of which have been
allotted.
Date: Thursday, December 10, 2009
Source: The Standard
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F.4 Economics: News Analysis
The demand for urn spaces has been huge but the public urn spaces available are not sufficient.
People have to queue for them.
Price
D
The market prices of public urn
spaces are much lower than the
equilibrium price.
S
Pe
The quantity demanded is greater
than the quantity supplied.
Pm
0
Qs
Qd
There is excess demand for
public urn spaces.
Quantity
Excess demand
Public Urn Spaces
Fig. 1
As public urn spaces and private urn spaces are substitutes, those people who are unable to get a
public urn space would want to get a private urn space. The demand for private urn spaces
increases.
Price
D1
D2
Assume the market of private urn
spaces is in equilibrium.
S
As the demand for private urn
spaces increases, the demand
curve shifts right.
P2
P1
The equilibrium price increases
(P1=>P2) and the equilibrium
quantity also increases (Q1=>Q2).
0
Fig. 2
Q1 Q2
Private Urn Spaces
Quantity
People have to pay a higher price
(P2) for private urn spaces.
2
Now that the government is considering a voluntary registration system to deter columbarium
operators from breaching land- use terms and to make information more transparent and protect
those seeking spaces for urns from illegal columbarium operators.
Therefore among the private urn spaces available in the market, there will be much less illegal
urn spaces. The supply of urn spaces decreases.
Price
D1
D2
S2
S1
As the supply of private urn
spaces decreases, the supply
curve shifts left.
P3
P2
The equilibrium price increases
(P2=>P3) and the equilibrium
quantity decreases (Q2=>Q3).
P1
0
Q1
Q2
Q3
Private Urn Spaces
People have to pay even a higher
price (P3) for private urn spaces.
Quantity
Fig. 3
Ching Chung Koon offered 1,000 new spaces for the public. The supply of private urn spaces
increases.
Price
D2
D1
S2
S3
S1
P3
P4
P2
P1
0
Q2
Q1
Q3
Private Urn Spaces
Fig. 4
Quantity
Q4
3
Refer to Fig. 4, as the supply of private urn spaces increases, the supply curve shifts right.
The equilibrium price decreases (P3=>P4) and the equilibrium quantity increases (Q2=>Q4).
People can pay a lower price (P3) for private urn spaces. However, they price they have to pay is
still higher than P1 and P2.
The government estimated the total annual number of deaths and cremations in the next 10 years
will be about 47,700. However, all 167,900 public columbarium niches have been allotted. The
demand for urn spaces will increase in the future.
For public urn spaces,
D1
D2
S
Pe
Pm
0
Qd1
Qs
Qd2
Quantity
Old Excess demand
Fig. 5
There is already an excess
demand for public urn spaces in
the market.
However, the demand for urn
spaces will continue to grow in
the future. The demand will
increase.
This will make the problem of
excess demand for public urn
spaces even more serious.
New Excess demand
Public Urn Spaces
For private urn spaces,
Price
D2
D3
The price (P4) of private urn
spaces is already very high.
However, the demand for urn
spaces will continue to grow in
the future. The demand will
increase.
This will make the price (P5) of
private urn spaces even higher
than before.
S3
P5
P4
0
Q4 Q5
Quantity
Private Urn Spaces
Fig. 6
4