A proposed compensation package for poultry traders is a generous and reasonable offer, Secretary for Food & Health Dr York Chow says. It takes into account the need for them to close down business within a short period of time, the trade's operation, turnover - and bird-flu risks.

Dr Chow today put forward the $1 billion package during a meeting with the trade - including farmers, wholesalers and retailers - to discuss compensation needed for them to leave the business.

Under the proposal, farmers, wholesalers, retailers, transport operators and live poultry workers could receive compensation which is about three times the value of the package for voluntary surrender of live poultry licences or tenancies scheme handed down in 2004 and 2005.

Dr Chow noted the Government must be prudent in coming up with the compensation package as it involved public money. Compensation can be made only with the support of the Legislative Council and the community at large.

"I understand that the trade has encountered difficulties in their business in the past few years due to the threat of avian influenza. I am sympathetic to their problems and want to work together with them to tackle them," Dr Chow said.

He urged the trade to adopt a pragmatic approach and reach a consensus as soon as possible, so funds can be sought from the LegCo finance committee within this legislative session.