The actual net funding cost of the Meat Hygiene Service (MHS), after charges to industry and Government customers, for the last three financial years together with the provision for 2008-09 (before any exceptional restructuring costs) is listed as follows:
Net operating costs (£ million) 2005-06 31.6 2006-07 33.3 2007-08 42.0 2008-09 32.0
Net operating costs (£ million)
The increased MHS net operating cost in 2007-08 resulted from an MHS Transformation Programme that will implement service delivery changes for all MHS customers. This transformation is continuing into 2008-09 and will reduce future costs. During 2007-08, exceptional transformation costs of £10.8 million were incurred mainly relating to redundancy and redeployment costs. In addition to the projected net operating cost of £32 million in 2008-09, we expect further exceptional transformation costs of up to £8 million.