Safety first: Secretary for Food & Health Dr York Chow (right)said from July 2, all unsold live chickens at stalls must be culled before 8pm each day. Director of Food & Environmental Hygiene Cheuk Wing-hing joins him at the press briefing.

Unsold live chickens will banned from overnight stays at retail markets when chicken sales resume on July 2, while the Government will give more time for retailers, farmers, wholesalers and transport operators to consider a proposed compensation package to buy out their licences, Secretary for Food & Health Dr York Chow says.

Dr Chow told the media today the Executive Council's decision has taken into account the trade's views and the risks of avian flu. As the bureau has been unable to trace the source of bird flu detected earlier in markets, enhanced measures are needed at the retail level when sales of live and chilled chicken resumes.

The Food Business Regulation will be amended to ban  live chickens from markets and fresh food shops between 8pm and 5am. All unsold live chickens at stalls will have to be culled before 8pm each day.

Food & Environmental Hygiene Department officers will conduct daily inspections from July 2 through early August to ensure the live poultry trade abides by the law. Violators will be liable to a $50,000 fine and six months in jail. Their licence or tenancy can also be cancelled.

On the proposed compensation for voluntarily terminating business, Dr Chow said retailers have an extra month - until July 24 - to consider whether to accept. Retailers, farmers, wholesalers and transport operators have three months, until September 24.

He noted the package is worth about $1 billion - about three times the value of that for the voluntary surrender scheme handed down in 2004-05. The Government has also agreed to scrap the shop area cap, to allow larger stalls to get more compensation.

Dr Chow said discussions with the live poultry trade will continue.

The Government will also offer an ex-gratia payment of $30 in compensation for each of the 400,000 chickens at local farms affected by the 21-day sale suspension, Dr Chow added.