Explanatory note

This order removes certain operations from the Defence Evaluation and Research Agency Trading Fund in connection with the implementation of the Public Private Partnership plan for the Defence Evaluation and Research Agency. The operations that continue to be funded will be known as the Defence Science and Technology Laboratory.

The assets described in Schedule 2 to the Order (estimated at £394.5 million) and the liabilities described under that schedule (estimated at £10 million) will be removed from the Fund. 50% of the difference in value between the assets remaining in the Fund as described in Schedule 1 to the Order (estimated at £179.7 million) and the liabilities described under that schedule (estimated at £11.9 million) is to be treated as public dividend capital of the Fund. The maximum amount that may be issued to the Fund by way of loan is reduced from £400 million to £100 million.