Explanatory note

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.