The open auction for the 2006 Victoria Park Lunar New Year Fair stalls conducted on November 14 and 15 was conducted fairly, and no party was found to have worked with another to cut the prices, Secretary for Health, Welfare & Food Dr York Chow says.

In a written reply to lawmakers today, Dr Chow said staff of the Food & Environmental Hygiene Department and police officers were on hand to maintain order during the auction.

Bidding for certain stalls was quite competitive, and people who tried to interfere with others' bids were warned immediately on the spot. 

He said letting out the fair stalls by tender was not practical given the large number of stalls involved.

"The open auction should continue as it is an open and fair system," he said.

"Bidders in an auction may know at once whether their bids are successful and proceed to make arrangements for purchase of the merchandise."

Taking into account the experience of the auction for the Victoria Park Lunar New Year Fair stalls, the department has implemented some improvement measures at the auctions for other Lunar New Year Fair stalls.

They will videotape the auctions and inform entrants of such arrangements, and give potential bidders large identification cards so staff on stage can easily identify them.

The Administration will keep the auction arrangements under review and introduce improvement measures as necessary, Dr Chow added.