
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 1996We concur
Simon Buras
Bowen Wells
Two of the Lords Commissioners of Her Majesty’s Treasury
8th March 1996
SCHEDULE 1
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.

SCHEDULE 2
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.
