The Defence Support Group Trading Fund Order 2008

EXPLANATORY NOTE

(This note is not part of the Order)

This Order provides for the setting up, from 1^st April 2008, of a fund with public money under the Government Trading Funds Act 1973 for the operations of the Ministry of Defence known as the Defence Support Group (DSG). The DSG is an engineering and logistics support organisation for equipment for Her Majesty’s armed forces and others. The DSG is a merger, from 1^st April 2008, of all the operations of the Ministry of Defence known as ABRO (formally known as the Army Base Repair Organisation) and the Electronics and Large Aircraft business units of the Ministry of Defence known as the Defence Aviation Repair Agency.

Article 3 designates the Secretary of State for Defence as the authorised lender to the fund.

Article 4(1) provides for, and schedule 2 specifies, the assets (estimated at £139,000,000) and liabilities (estimated at £71,000,000) which are to be appropriated to the fund.

Article 4(2) provides for a proportion of the difference in value between those assets and liabilities to be treated as revaluation reserves in the accounts of the fund and shall be maintained as reserves.

Article 4(3) provides for 50 per cent of the balance of the net assets less the amount of the revaluation reserves to be treated as public dividend capital of the fund.

Article 5 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.

Article 6 revokes the ABRO Trading Fund Order 2002.