Matters to be taken into account in determining costs3

In relation to any functions the costs of which fall to be taken into account in the exercise of a power to fix a fee specified in article 2(2) (whether by virtue of article 2(3) or otherwise) the matters specified for the purposes of section 102(4) of the Finance (No. 2) Act 198714 shall be the following—

a

all costs incurred by the Secretary of State which are directly attributable to the functions specified in article 2(3);

b

that proportion of the costs, not falling within paragraph (a) above, incurred by, or on behalf of the Secretary of State, in relation to staff, management functions, financial charges or penalties, legal costs, equipment, premises, facilities and all other matters connected directly or indirectly therewith, being the proportion which falls to be attributed to any of the functions specified in article 2(3);

c

a return on the resources employed in carrying out any of the functions specified in article 2(3);

d

net income arising from services provided by the Secretary of State in connection with, or relating but additional to, the functions specified in article 2(3);

e

the allocation of sums in respect of matters which would otherwise be covered by insurance, and the allocation of a sum in respect of superannuation payments and provision for bad debts in relation to any of the functions specified in article 2(3);

f

amounts recovered in relation to any of the functions specified in article 2(3) other than by way of such fees as are referred to in this Order;

g

the allocation over a period of years of initial or exceptional costs in relation to any of the functions specified in article 2(3);

h

the recovery of any deficits incurred or accrued in relation to any of the functions specified in article 2(3); and

i

the transfer of, or obligation to transfer, sums corresponding to any part of any fees paid in connection with vehicle registration or driver licensing so as to offset any subsidy arising between Northern Ireland and Great Britain in connection with vehicle registration or driver licensing.