delete FUNDED OPERATIONS
Establishes the Defence Aviation Repair Agency Trading Fund from 1 April 2001, designating the Secretary of State for Defence as the source of loans, appropriating Crown assets and liabilities to the fund, treating 50% of net assets as public dividend capital, and capping total outstanding loans and public dividend capital at £300 million.
This Order perpetuates state ownership and control of aviation repair services that could otherwise be provided through competitive private markets. Government trading funds are bureaucratic constructs that shield operations from genuine market discipline, preventing the efficiency gains that competition would deliver. The £300 million capital structure represents ongoing public subsidy that distorts resource allocation and prevents private sector alternatives from competing. Defence repair services, like all services, are best provided through competitive markets rather than government-established funds that are insulated from real commercial accountability.