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Mr. Robin Cook
To ask the Secretary of State for Health if he will make a statement on the role of capital charges in the 1992–93 financial year.
Mr. Dorrell
The capital charging system, introduced on 1 April 1991, is now a firm part of the NHS financial regime. It will continue to operate in 1992–93 and in future years. It ensures that the full costs of capital in the NHS are taken into account when setting contract prices and making decisions on the use of assets.