Source: http://www.legislation.gov.uk/ukpga/1973/63
Timestamp: 2019-07-22 06:43:47
Document Index: 420199939

Matched Legal Cases: ['art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 5', 'art. 3']

Changes over time for: Government Trading Funds Act 1973
19/03/1991- Amendment
31/07/1991- Amendment
1973 CHAPTER 63
An Act to enable certain services of the Crown to be financed by means of trading funds established in pursuance of orders made by the responsible Minister with Treasury concurrence; to make consequential provision (in the event of a trading fund being established for the Mint) as to sums received by, or due from, the Treasury in respect of the coinage; and to amend the Coinage Act 1971 in respect of the establishment and operations of the Mint.
C1The Act as amended by ss. 1 and 2 of the Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(5) is set out in Schedule 1 to that Act
[F11 Establishment of trading funds.U.K.
(1)If it appears to any Minister of the Crown—
(9)References in this Act to a Minister of the Crown include Ministers acting jointly, but an order may not designate more than one Minister as the authorised lender.]
P1S. 1: s. 1 (with ss. 2(1)(7), 2A and 2B(6)), power exercised by S.I. 1991/773
P2S. 1: for previous exercises of power, see Index to Government Orders
P3S. 1: s. 1 (with ss. 2 and 2B(6)) power exercised by S.I.1991/1795.
P4S. 1: s. 1 (with ss. 2, 2B(6) and 4(6B)) power exercised by S.I.1991/1796.
P5S. 1(1)(4): s. 1(1)(4) (with ss. 2(1)(7), 2A and 2B), power exercised by S. I. 1991/857
P6S. 1(1): power exercised by S.I. 1991/876
P7S. 1(1)(4): s. 1(1)(4) (with ss. 2(1), 2A(1) and 2B(6), power exercised by S.I.1991/875
F1Ss. 1–2B substituted for sections 1 and 2 by Government Trading Act 1990 (c. 30, SIF 99:1), s. 1(1)
2F2Assets and liabilities of funds.U.K.
(1)Where any Minister of the Crown proposes to make an order establishing a trading fund for any operations or to vary an order by extending the funded operations—
(b)the order shall provide for the assets and liabilities so determined to be appropriated as assets and liabilities of the fund F3 . . ..
(2)The responsible Minister may from time to time, in the case of any trading fund, with Treasury concurrence determine what additional Crown assets and liabilities are properly attributable to the funded operations and suitable to be appropriated to the fund and provide by order for the assets and liabilities in question to be appropriated as assets and liabilities of the fund F3 . . ..
[F4(2A)The values or amounts of assets and liabilities which are the subject of provision under subsection (1) or (2) above shall be determined by the responsible Minister in accordance with Treasury directions.]
(b)any amount treated by virtue of the order as public dividend capital [F5or any amount treated by virtue of the order as reserves or (where the order provides for both public dividend capital and reserves) the aggregate of those amounts],
(b)any amount treated by virtue of the order as public dividend capital [F6for any amount treated by virtue of the order as reserves or (where the order provides for both public dividend capital and reserves) the aggregate of those amounts],
P8S. 2: power exercised by S.I. 1976/508 and 1980/456
P9S. 2: s. 1 (with ss. 2 and 2B(6)) power exercised by S.I. 1991/1795.
P10S. 2: s. 1 (with ss. 2, 2B(6) and 4(6B)) power exercised by S.I. 1991/1796.
P11S. 2(1)(7): s. 1 (with ss. 2(1)(7), 2A and 2B(6)), power exercised by S.I. 1991/773
P12S. 2(1)(7): s. 1(1)(4) (with ss. 2(1)(7), 2A(1) and 2B(6)), power exercised by 1991/857
P13S. 2(1): ss. 1(1)(4) (with ss. 2(1), 2A(1) amd 2B(6)), power exercised by S.I. 1991/875
F2Ss. 1-2B substituted for sections 1 and 2 by Government Trading Act 1990 (c. 30, SIF 99:1), s. 1(1)
F3Words in s. 2(1)(b)(2) repealed by Finance Act 1991 (c. 31, SIF 63:1), ss. 119(2), 123, Sch. 19, Pt.VIII
F4S. 2(2A) inserted by Finance Act 1991 (c. 31, SIF 63:1), s. 119(3)
F5Words in s. 2(3)(b) inserted (27.7.1993) by 1993 c. 34, s. 210, Sch. 22 para. 2(2)
F6Words in s. 2(4)(b) inserted (27.7.1993) by 1993 c. 34, s. 210, Sch. 22 para. 2(3)
[F72AA Initial reserves.U.K.
(1)An order providing for any assets and liabilities to be appropriated as assets and liabilities of a trading fund may make—
(a)provision for any part of the amount by which the values of the assets exceed the amounts of the liabilities to be treated as reserves in the accounts of the trading fund, and
(b)provision about the maintenance of such reserves.
(2)For the purposes of subsection (1) above “reserves” means reserves whether general, capital or otherwise; and an order may provide for different kinds of reserves.
(3)Nothing in subsection (1) above shall prejudice the operation of section 4(2) of this Act in relation to a trading fund; and nothing in section 4(2) of this Act shall prejudice the operation of subsection (1) above in relation to a trading fund.
(4)This section applies in relation to an order made after the day on which the Finance Act 1993 was passed.]
F7S. 2AA inserted (27.7.1993) by 1993 c. 34, s. 210, Sch. 22 para. 2(1)
2AF8Public dividend capital.U.K.
(1)An order providing for any assets and liabilities to be appropriated as assets and liabilities of a trading fund may provide for any part of the amount by which the values of the assets exceed the amounts of the liabilities to be treated as public dividend capital of the fund.
[F9(2A)If the responsible Minister considers it appropriate to do so, he may with Treasury concurrence issue out of money provided by Parliament an amount to the fund as public dividend capital; and this subsection shall have effect instead of subsection (2) above after the day on which the Finance Act 1993 was passed.]
P14S. 2A: s. 1 (with ss. 2(1)(7), 2A and 2B(6), power exercised by S.I. 1991/773
P15S. 2A(1): s. 1(1)(4) (with ss. 2(1)(7), 2A(1) and 2B(6), power exercised by S.I. 1991/857
P16S. 2A(1): s. 1(1)(4) (with ss. 2(1), 2A(1) and 2B(6)), power exercised by S.I.1991/875
F8Ss. 1-2B substituted for sections 1 and 2 by Government Trading Act 1990 (c. 30,SIF 99:1), s. 1(1)
F9S. 2A(2A) inserted (27.7.1993) by 1993 c. 34, s. 210, Sch. 22, para.3
2BF10Borrowing by funds.U.K.
(1)No amount shall be paid into a trading fund by way of loan except in accordance with this section.
(4)A rate of interest for any amount so issued by the responsible Minister shall be determined as if section 5 of the National Loans Act 1968 had effect in respect of it and subsections (5A) and (5B) of that section shall apply accordingly.
P17S. 2B: for previous exercises of power see Index to Government Orders.
F10Ss. 1-2B substituted for sections 1 and 2 by Government Trading Act 1990 (c. 30, SIF 99:1), s. 1(1)
F11S. 2B(6)-(9) repealed (27.7.1993) by 1993 c. 34, s. 210, 213, Sch. 22 para. 4(2), Sch. 23 Pt.VII
[F122C Maximum borrowing etc.U.K.
(1)Where an order made after the day on which the Finance Act 1993 was passed establishes a trading fund, the order shall provide that the aggregate of the following shall not exceed the maximum specified in the order—
(a)the total outstanding at any given time in respect of amounts issued to the fund under section 2B of this Act (other than as originating debt), and
(b)the total at that time constituting public dividend capital issued to the fund under section 2A(2A) of this Act;
and that maximum (or that maximum as varied by a subsequent order) shall be observed accordingly.
(2)Where an order made on or before the day on which the Finance Act 1993 was passed establishes a trading fund, and the order specifies the maximum amount that may be issued to the fund under section 2B of this Act, the order shall be taken to provide that the aggregate of the following shall not exceed that maximum—
(3)The sum of the maxima in force in respect of all trading funds at any time shall not exceed [F13£8,000 million].
(4)The Treasury may by order made by statutory instrument increase or further increase the limit in subsection (3) above by any amount, not exceeding £1,000 million, specified in the order but not so as to make the limit exceed [F14£10,000 million].
(5)No order under subsection (4) above shall be made unless a draft of a statutory instrument containing it has been laid before the House of Commons and approved by a resolution of that House.]
F12S. 2C inserted (27.7.1993) by 1993 c. 34, s. 210, Sch. 22 para. 4(1)
F13Words in s. 2C(3) substituted (11.5.2001) by 2001 c. 9, s. 108(2)
F14Words in s. 2C(4) substituted (11.5.2001) by 2001 c. 9, s. 108(3)
3 Payments into, and out of, a trading fund.U.K.
[F15(1)There shall be paid into a trading fund all receipts in respect of the funded operations and there shall be paid out of the fund all expenditure incurred by the responsible Minister in respect of those operations, except expenditure in respect of liabilities not appropriated to the fund.]
(2)Without prejudice to subsection [F16(1)] above, there shall be paid out of the trading fund into the Consolidated Fund such sums as may be appropriate as representing accruing liabilities of the [F17Treasury] in respect of pensions [F18(including increases of pensions)], gratuities and other similar benefits for persons who have been employed in the funded operations and in respect of the administrative expenses attributable to those liabilities and their discharge; and
[F19(a)where the Treasury is the responsible Minister for the fund, it shall be for the Treasury to determine the sums payable under this subsection, the amount of any payment and the time at which it is to be made; and
(b)in other cases it shall be for the responsible Minister to determine the sums so payable in agreement with the Treasury, subject to any directions given by the Treasury as to the amount of any payment or the time at which it is to be made.]
[F20(4)Nothing in this section affects the powers conferred in relation to fees and charges by section 102 of the Finance (No. 2) Act M11987.]
F15S. 3(1) substituted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(1)(a)
F16 “(1)” substituted for “(1)(b)” by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(1)(b)
F17Word substituted by S.I. 1981/1670, art. 3(3)(a)
F18Words inserted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(1)(b)
F19Words substituted by S.I. 1981/1670, art. 3(3)(b)
F20S. 3(4) inserted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(1)(c)
C2S. 3(1) and (2)(b) amended (1.4.1993) by S.I. 1993/938, art. 3(3)
M11987 c.51(99:5).
4 Management and accounting.U.K.
(1)A trading fund established under this Act . . . F21 shall be under the control and management of the responsible Minister; and in the discharge of his functions in relation to the fund it shall be his duty—
(a)to manage the funded operations so that the revenue of the fund
[F22(i)consists principally of receipts in respect of goods or services provided in the course of the funded operations, and
(ii)] is not less than sufficient, taking one year with another, to meet outgoings which are properly chargeable to revenue account; and
(3)If at any time it appears to the responsible Minister that any amount standing in the reserves of the trading fund is surplus to any foreseeable requirements of the funded operations, [F23he may with Treasury concurrence pay that amount out of the fund and] into the Consolidated Fund.
[F24(4)If, in the case of a trading fund not having public dividend capital, the revenues of the fund for a financial year exceed the total sums properly chargeable to revenue account for that year, the responsible Minister may with Treasury concurrence—
(b)pay the whole or part of the excess into the Consolidated Fund.]
(a)the annual statement of accounts shall [F25comply with any directions given by the Treasury as to the information to be contained in the statement, the manner in which the information is to be presented or the methods and principles according to which the statement is to be prepared] and contain such additional information . . . F26 as the Treasury may require to be provided for the information of Parliament; and
[F27(6A)The accounting officer shall send to the responsible Minister in respect of each financial year—
(6B)Where any enactment (other than this Act) requires, in whatever terms, a report to be prepared for any period as to the funded operations and sent to any person, or laid before Parliament, or both or so sent or laid by any time or times, an order may provide for that requirement to be treated as satisfied by preparing the report for the financial year and sending it to that person, or laying it before Parliament, or both or, as the case may be, so sending or laying it by the time or times specified in the order.]
[F28(7)The Treasury shall not make a direction under section 7(1) of the Government Resources and Accounts Act 2000 in respect of any operations of a government department for a financial year during which the operations are funded operations of a trading fund.]
P18S. 4(6B): s. 1 (with ss. 2, 2B(6) and 4(6B)) power excercised by S.I. 1991/1796.
S. 4: for previous exercises of this power see Index to Government Orders.
F21Words repealed by Government Trading Act 1990 (c. 30, SIF 99:1), s. 5(4), Sch. 2 Pt. II
F22Words inserted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(2)(a)
F23Words substituted by Government Trading Act 1990 (c.30, SIF 99:1), s. 2(2)(b)
F24S. 4(4) substituted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(2)(c)
F25Words substituted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(2)(d)
F26Words repealed by Government Trading Act 1990 (c. 30, SIF 99:1), ss. 2(2)(d), 5(4), Sch. 2 Part II
F27S. 4(6A)(6B) inserted by Government Trading Act 1990 (c. 39, SIF 99:1), s. 2(2)(e)
F28S. 4(7) substituted (1.4.2001) by 2000 c. 20, s. 29, Sch. 1 para. 16; S.I. 2000/3349, art. 3(1)(a) (with transitional provision in art. 5)
C3S. 4(1)(2)(3)(5) amended (1.4.1993) by S.I. 1993/938, art. 3(3)
C4S. 4(5) extended (24.6.2003) by The Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations 2003 (S.I. 2003/1633), reg. 1(1), Sch. 2 para. 2(d)
[F294A Operations ceasing to be funded.U.K.
(1)This section applies where any operations for which a trading fund is established are to cease to be funded operations (whether the operations ceasing to be funded represent the whole or part of the funded operations or are to cease altogether or be funded operations of another fund or, while continuing to be operations of a department of the government, be financed by other means).
(8)Where the operations ceasing to be funded represent only part of the funded operations, the responsible Minister may by order made with Treasury concurrence reduce or extinguish any originating debt, or public dividend capital, remaining after the application of the proceding subsections.]
F29S. 4A inserted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 1(2)
5 Provisions as to the coinage.U.K.
If a trading fund is established under this Act for the Mint, then as from the day appointed in relation to the fund under section 1(1) of this Act—
6 Orders.U.K.
[F30(1)The power to make an order under section 1 of this Act shall be exercisable by statutory instrument and includes power to vary or revoke such an order, but no such order may alter the authorised lender in relation to any fund.]
(2)No order [F31establishing a trading fund, or extending or restricting the funded operations,] shall be made unless a draft of a statutory instrument containing it has been laid before the House of Commons and approved by a resolution of that House.
(3)[F32A statutory instrument containing an order under section 1 of this Act, if made without a draft having] been approved by a resolution of the House of Commons, shall be subject to annulment in pursuance of a resolution of that House.
[F33(4)Where a Minister of the Crown has taken steps in pursuance of section 1(3) of this Act to give an opportunity for representations to be made about a proposed order, he shall, before laying, in accordance with subsection (2) above, a draft instrument containing the order giving effect to the proposal, lay a report before Parliament about the representations received and his conclusions.]
F30S. 6(1) substituted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(3)(a)
F31Words substituted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(3)(b)
F32Words substituted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(3)(c)
F33S. 6(4) substituted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(3)(d)
7The Mint.U.K.
(1)For purposes of this Act the Chancellor of the Exchequer is to be regarded as the Minister responsible for the administration of the Mint; and this Act, so far as it requires the concurrence of the Treasury for the making of orders, or for anything to be done under or for the purposes of [F34sections 2, 2A, 4 or 4A], does not apply to him as responsible Minister in relation to the Mint.
(2)In section 4 of the M2Coinage Act 1971 (which relates to the constitution and functions of the Mint), the following shall be substituted for subsection (2)—
“(2)There shall be a deputy master of the Mint, appointed by the Treasury;”and subsections (3) and (4) are hereby repealed;and subsections (6) and (7) (expenses and receipts) shall not have effect for so long as any operations of the Mint are [F35funded operations].
(3)Section 5 of the said Act of 1971 (coining of bullion taken to the mint) is hereby repealed.
(4)In section 9(1) of the said Act of 1971 (prohibition of coins and tokens not issued by authority) for the words “by or with authority of the mint” there shall be substituted the words “with the authority of the Treasury”.
(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F36
F34Words substituted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(4)
F35Words substituted by Government Trading Act 1990 (c. 30, SIF 99:1), s. 2(4)
F36S. 7(5) repealed by Government Trading Funds Act 1973 (c. 63), s. 7(5)
C5The text of s. 7(2)(3)(4) is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.
M21971 c. 24.
8Citation.U.K.
This Act may be cited as the Government Trading Funds Act 1973.