§ 34. Mr. Colvinasked the Secretary of State for Defence what is his latest budgeted figure for the total cost to his Department of commercialising the Gibraltar royal naval dockyard.
§ Mr. LeeUp to £28 million of financial aid for commercialisation will be provided from ODA funds. Almost all MOD costs result from closure of the naval dockyard rather than its commercialisation. They include redundancy payments and the cost of moving facilities into the naval base area, and will be more than offset by the recurring savings resulting from the closure of the dockyard. Our estimate of that part of our planned expenditure directly attributable to commercialisation is between £1 million and £1.5 million. This covers an element of our relocation costs and also the cost of separating the mains supply of services for the naval base from those for the proposed commercial area.