The Hydrographic Office Trading Fund Order 1996

Made: 8th March 1996

Coming into force: 1st April 1996

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:—

Citation and commencement

1

This Order may be cited as the Hydrographic Office Trading Fund Order 1996 and shall come into force on 1st April 1996.

Establishment of the fund

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”).

Source of loans

3

The Secretary of State for Defence is hereby designated as the source of issues to the fund by way of loan.

Assets, liabilities, reserves and public dividend capital

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.

Maximum borrowing etc.

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.

SCHEDULE 1 — FUNDED OPERATIONS

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.

SCHEDULE 2 — ASSETS AND LIABILITIES APPROPRIATED TO THE FUND

ASSETS

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.

LIABILITIES

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.

Signed

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

Explanatory note

(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.

Footnotes

[^f00001]: 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).