§ Mr. Dismore
To ask the Secretary of State for Health (1) what arrangements will be made, and for how long, to ring fence public health laboratory budgets when the service is reorganised to the management of local hospital trusts; 
(2) what transitional funding arrangements will be in place for the Public Health Laboratory Service during its reorganisation. 
§ Ms Blears
Public Health Laboratory Service (PHLS) laboratories transferring to the national health service will receive funding from the NHS and from the proposed Health Protection Agency for their diagnostic work. Traditionally, some of PHLS's core funding has supported the routine services provided to NHS trusts. In 2003–04, transferring PHLS laboratories will receive payments, to be known as "residual subsidy", to cover this support. For 2004–05 the subsidy will be passed to primary care trusts as part of general allocations, and contracts between NHS trusts will operate on a full cost recovery basis.