Memorandum from the Home Office
1986 (FEES) (AMENDMENT)
ORDER 2002 (S.I. 2002/473)
1. The Joint Committee has requested a memorandum
on the following point in respect of this Order -
"Explain the reasons for the substantial
increase in fees made by article 2"
2. The income from fees charged for certificates
issued under the 1986 Act has to recover all staff and other costs
directly associated with administering the Act. It is also a requirement
that annual expenditure and income should as far as practicable
break even. The general rules applying in such situations are
set out in the HM Treasury publication, "The Fees and Charges
3. There has been no fee increase since April 2000.
As a result a final end of year deficit of over £200,000
is expected for 2001/02, and this will become much greater by
the end of 2002/03 if fees remain at the current level.
4. Moreover, significant new expenditure will be
incurred in 2002/03, through recruitment of additional members
of the Animals (Scientific Procedures) Inspectorate. The Minister
concerned made clear to Parliament, when announcing expansion
of the Inspectorate in March 2001, that the extra costs would
have to be recovered through fees.
5. A Ministerial decision has thus been taken to
increase the fees by 48%, both to offset the accrued and projected
deficits arising from current levels of expenditure, and to cover
the costs of additional Inspectors. Failure to increase the fees
now will result in even larger increases having to be sought at
a later stage.
6. As noted in footnote (a) to the Order, fees may
take account of past deficits (by virtue of the Animals (Scientific
Procedures) Act 1986 (Fees) (No1) Order 1996 (S.I.1996/3090)).
5 April 2002