delete Funded operations
The Defence Science and Technology Laboratory Trading Fund Order 2011 continues an existing government trading fund for defence research, extends its operations, sets public dividend capital at £50.4m and maximum issuance at £100m, and revokes four older Orders dating back to 1993. The fund operates as a commercial entity within government for defence science and technology activities.
Trading funds represent government attempting to operate commercially in markets, distorting competition. While defence R&D has national security justifications, the trading fund model creates an unaccountable hybrid that crowds out private sector alternatives and perpetuates state involvement where private contractors could perform the same functions. The revoked Orders from 1993-2001 show this structure has been repeatedly carried forward rather than scrutinised. Market alternatives exist for defence research through competitive procurement.