time until old stocks are used up and the 10 year validity of old

passports expires.

G

Fee Costs and Income

1

8. While no fee is to be charged for registration in BN(0) status,

there will be a fee for the passport. Hong Kong at present charge.

fees under their own regulations and keep the income. Their

standard passport at around £20 costs £5 more than the UK issue.

Since the Governor will be issuing BN (0) passports as agent of the

Foreign and Commonwealth Secretary, the fee will have to be levied

under the Consular Fees Act 1980 and will be the same for all UK

passport issuing posts around the world save for variations arising

from rates of currency exchange. The Home Secretary will be

responsible for setting the fee in the context of a general review

of fees which we shall put forward next year.

?

9. The Home Office at present meets the cost of passports issued by

the Foreign and Commonwealth Office (around £350,000 per year). It

is an issue left over from the transfer of Passport Offices to the

Home Office and is under review. We have told the Foreign and

Commonwealth Office that we do not intend to bear the cost of

£4.2 million for a potential 3 million BN (0) passport applicants in

Hong Kong. They have agreement in principle from the Treasury that

exceptionally Hong Kong should meet their own costs, keeping the

difference between that and the fee charged which might otherwise

have had to be surrendered as Consolidated Fund Extra Receipts. FCO

officials have yet to go to their Secretary of State on this issue.

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