asked the Secretary of State for Defence if he will explain the basis on which costings will be made of the work done by the royal dockyards in the refitting of Euryalus and Otter.

Work done by the royal dockyards in support of the refits of Her Majesty's ships Euryalus and Otter and stores supplied to the refits will be charged on a full cost basis, in accordance with the usual public accounting procedures. Under these provisions the direct cost of such work, together with an appropriate share of MOD overheads, is attributed to the project in question.