
1 
This Order may be cited as the ABRO Trading Fund Order 2002 and shall come into force on 1st April 2002.
2 
As from 1st April 2002, for all the operations of the Ministry of Defence known as ABRO, which operations are more particularly described in Schedule 1 to this Order, there shall be established a trading fund to be known as the ABRO 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) Eleven per cent of the amount by which the values of the assets exceed the amounts of the liabilities shall be treated as reserves in the accounts of the fund and shall be maintained as revaluation reserves.
(3) Fifty 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 £300,000,000—
(a) the total outstanding at any given time in respect of amounts issued to the fund under section 2B of the 1973 Act (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.
Geoffrey Hoon
Secretary of State for Defence
12th March 2002We concur
Tony McNulty
John Heppell
Two of the Lords Commissioners of Her Majesty’s Treasury
14th March 2002
SCHEDULE 1
Article 2

The operations of ABRO to be funded by the fund are—
(a) the provision of engineering and logistics support, including repair and maintenance for land-based equipment, 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 in the United Kingdom and overseas;
(c) operations incidental, conducive or otherwise ancillary to the foregoing.

SCHEDULE 2
Article 4
Land and buildings, as at 1st April 2002 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, less debtors, as at that date used or allocated for use in, or arising from, the funded operations.

No creditors or accruals will be appropriated to the fund.
