The Buying Agency Trading Fund Order 1991

Statutory Instruments

1991 No. 875

GOVERNMENT TRADING FUNDS

The Buying Agency Trading Fund Order 1991

Approved by the House ofCommons

Made

1st April 1991

Coming into force

1st April 1991

Whereas:

(1) It appears to the Secretary of State that the operations of theBuying Agency referred to in article 3 of this Order are suitable to befinanced by means of a trading fund, and that the financing of thoseoperations by means of a trading fund would be in the interests of theimproved effectiveness of the management of those operations;

(2) The Secretary of State has, in accordance with section 2(1) of theGovernment Trading Funds Act 1973 determined:—

(a) with Treasury concurrence that the assets and liabilities setout in Schedule 2 are properly attributable to those operations and aresuitable to be appropriated to the fund to be established by thefollowing Order, and

(b) in accordance with Treasury directions the values and amounts soset out.

The Secretary of State, in exercise of the powers conferred on himby sections 1(1), 1(4), 2(1), 2A(1), and 2B(6) of the Government TradingFunds Act 1973(1) and of all other powers enabling him in that behalf,with the concurrence of the Treasury, hereby makes the following Order,a draft of which has been laid before the House of Commons and has beenapproved by a resolution of that House in accordance with section 6(2)of the said Act:—

Citation and commencement

1.  This Order may be cited as the Buying Agency Trading Fund Order1991, and shall come into force on 1st April 1991.

Interpretation

2.  In this Order—

“the Act” means the Government Trading Funds Act 1973; and

“the fund” means the trading fund established by this order.

Establishment of the fund

3.  As from 1st April 1991 for the operations of the department of thegovernment known as the Buying Agency which are described in Schedule 1to this Order there shall be established a trading fund to be known asthe Buying Agency Trading Fund.

Designation of the authorised lender

4.  The Secretary of State is hereby designated the authorised lender tothe fund for the purposes of the Act.

Maximum amount to be issued to the fund by way of loan

5.  The maximum amount that may be issued to the fund by way of loanunder section 2B of the Act shall be £10 million.

Appropriation of assets and liabilities

6.  The Crown assets and liabilities as at 1st April 1991 described ingeneral terms in Schedule 2 to this Order shall be appropriated asassets and liabilities of the fund at the values and the amountsspecified in that Schedule.

Public dividend capital

7.  Such part of the capital of the fund as amounts to£100,000 shall be treated as public dividend capital.

Michael Heseltine

One of Her Majesty’s Principal Secretaries of State

26th March 1991

We concur

Thomas Sackville

Sydney Chapman

Two of the Lords Commissioners of Her Majesty’s Treasury

1st April 1991

Article 6

SCHEDULE 1 FUNDED OPERATIONS

The operations of the Buying Agency to be funded by the fundare:—

(a) the procurement and supply to government departments and otherbodies of such goods, materials, plant equipment, products and servicesas may be required by or supplied to any government department, healthauthority, local authority, nationalised industry, or other nondepartmental public body, and

(b) operations incidental, conducive or otherwise ancillary to theforegoing.

Article 6

SCHEDULE 2 ASSETS AND LIABILITIES APPROPRIATED TO THE FUND

Assets	Value (in £000)
Plant, machinery, fixture, fittings and equipment	150
Debtors	1,500
Liabilities	Amount (in £000)
Trade creditors	250
Accruals	200

Explanatory Note

(This note is not part of the Order)

This Order provides for setting up a trading fund established withpublic money to finance the operations of the Buying Agency. Itdesignates the Secretary of State as the authorised lender to the fund,imposes a limit of £10 million on the sums that may be issuedto the fund by way of loan, and provides that part of the capital of thetrading fund amounting to £100,000 is to be public dividendcapital. Schedule 1 describes the operations in question, and Schedule 2the assets and liabilities that are appropriated to the fund togetherwith their values and amounts.

(1)

1973 c. 63. Sections 1 and 2 were substituted, andsections 2A and 2B inserted, by section 1 of the Government Trading Act1990 (c. 30). The 1973 Act as amended is set out in Schedule 1 to the1990 Act.