To ask Her Majesty's Government further to the Written Answer by Lord Hunt of Kings Heath on 26 February (WA 107–08), how animal health charge-out rates are adjusted for productivity. [HL2741]

Charge-out rates have to recover full costs. It is accepted that a utilisation rate of 100 per cent is not achievable and so, in line with standard practice for service organisations, the charge-out rates are arrived at by assuming a productivity rate of 70 per cent.