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United Kingdom Statutory Instruments |
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You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Hydrographic Office Trading Fund Order 1996 No. 773 URL: http://www.bailii.org/uk/legis/num_reg/1996/uksi_1996773_en.html |
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Statutory Instruments
GOVERNMENT TRADING FUNDS
Made
8th March 1996
Coming into force
1st April 1996
Whereas:
(1) It appears to the Secretary of State for Defence ("the Secretary of State") that:-
(a)those operations of the Ministry of Defence which are referred to in Article 2 of, and Schedule 1 to, this Order are suitable to be financed by means of a fund established under the Government Trading Funds Act 1973(1) ("the 1973 Act") and, in particular, to be so managed that the revenue of the fund would consist principally of receipts in respect of goods or services provided in the course of the operations in question, and
(b)the financing of the operations in question by means of a trading fund would be in the interests of the improved efficiency and effectiveness of the management of those operations;
(2) The Secretary of State has, in accordance with section 2 of the 1973 Act and with the concurrence of the Treasury, determined what Crown assets and liabilities are properly attributable to the operations in question and are suitable to be appropriated to the fund;
(3) In accordance with section 6(2) of the 1973 Act, a draft of this Order has been laid before the House of Commons and has been approved by a resolution of that House;
Now, therefore, the Secretary of State in exercise of the powers conferred upon him by sections 1, 2, 2AA(1), 2A(1), 2C(1) and 6(1) of the 1973 Act, and of all other powers enabling him in that behalf, with the concurrence of the Treasury, hereby makes the following Order:-
1. This Order may be cited as the Hydrographic Office Trading Fund Order 1996 and shall come into force on 1st April 1996.
2. As from 1st April 1996, for all the operations of the Ministry of Defence known as the Hydrographic Office, which operations are more particularly described in Schedule 1 to this Order, there shall be established a trading fund to be known as the Hydrographic Office Trading Fund (hereinafter referred to as "the fund").
3. The Secretary of State for Defence is hereby designated as the source of issues to the fund by way of loan.
4.-(1) The Crown assets and liabilities set out in Schedule 2 to this Order shall be appropriated as assets and liabilities of the fund.
(2) 5.1 per cent of the amount by which the values of the assets exceed the amounts of the liabilities shall be treated as a revaluation reserve in the accounts of the fund and the reserve so treated shall be maintained as a revaluation reserve.
(3) 47.3 per cent of the balance of
(a)the amount by which the values of the assets exceed the amounts of the liabilities, less
(b)the amount to be treated as a revaluation reserve in accordance with paragraph (2) above,
shall be treated as public dividend capital of the fund.
5. The aggregate of the following shall not exceed £50,000,000
(a)the total outstanding at any given time in respect of amounts issued to the fund under section 2B of the Government Trading Funds Act 1973 (other than as originating debt), and
(b)the total at that time constituting public dividend capital issued to the fund under section 2A(2A) of that Act.
Michael Portillo
Secretary of State for Defence
6th March 1996
We concur
Simon Buras
Bowen Wells
Two of the Lords Commissioners of Her Majesty's Treasury
8th March 1996
Article 2
The operations of the Hydrographic Office to be funded by the fund are:-
(a)the provision of hydrographic, oceanographic, geophysical and associated goods and services to the Ministry of Defence and to other Crown bodies;
(b)the provision of such goods and services to other customers;
(c)operations incidental, conducive or otherwise ancillary to the foregoing.
Article 4
Land and buildings, as at 1st April 1996, used or allocated for use in the funded operations.
Plant, facilities, machinery, fixtures, fittings, vehicles, equipment and computer hardware and software, as at that date, used or allocated for use in the funded operations.
Intangible assets arising from the funded operations as carried on up to that date.
Current assets as at that date used or allocated for use in, or arising from, the funded operations.
Creditors and accruals as at 1st April 1996 in relation to the funded operations.
Provision for sales credits, as at that date, referable to the return by Admiralty Chart Agents of superseded charts and publications pertaining to the funded operations.
(This note is not part of the Order)
This Order provides for the setting up as from 1st April 1996 of a fund with public money under the Government Trading Funds Act 1973 for the operations of the Ministry of Defence known as the Hydrographic Office.
The Order designates the Secretary of State for Defence as the authorised lender to the fund. The Order also specifies the assets (estimated at £27,350,000) and liabilities (estimated at £800,000) which are to be appropriated to the fund; provides for a proportion of the difference in value between those assets and liabilities to be treated as a revaluation reserve and for a further proportion of that difference to be treated as public dividend capital of the fund; and specifies the maximum aggregate amount that may at any time constitute outstanding loan issued to the fund (other than as originating debt) and public dividend capital.
1973 c. 63, as amended by the Government Trading Act 1990 (c. 30). The 1973 Act, as so amended, is set out in Schedule 1 to the 1990 Act. The 1973 Act was further amended by section 119 of the Finance Act 1991 (c. 31) and Schedule 22 to the Finance Act 1993 (c. 34).
