delete FUNDED OPERATIONS
The Forensic Science Service Trading Fund Order 1998 establishes a trading fund structure for the Forensic Science Service from 1st April 1999. It designates the Home Secretary as the source of loan issues, appropriates Crown assets and liabilities to the fund, mandates a 2% revaluation reserve and 50% public dividend capital treatment of excess assets, and caps total outstanding borrowing at £40 million.
Trading fund structures impose arbitrary bureaucratic accounting requirements (2% revaluation reserve, 50% public dividend capital) that constrain commercial flexibility without improving service quality. The £40 million borrowing cap arbitrarily limits financial autonomy. Forensic science services could be more efficiently provided through private sector competition with appropriate accreditation standards, eliminating the need for government-owned trading structures that distort market signals and insulate services from competitive pressure.