WORK has just begun on Hampshire based military training firm Flagship's £7m project to build a new dining and leisure facility for Fareham's Royal Navy base, HMS Collingwood.

Forming a new Junior Rates galley and dining hall, the new building will support the introduction of pay as you dine', the navy's groundbreaking new scheme to charge soldiers for what they eat rather than a daily food charge.

The single-storey building, due to open by Easter next year, will have catering, shops and leisure services all under one roof, including a coffee shop, Internet cafe and bar.

David Sumecki, Flagship's construction director, said: "Introducing a modern and cost-effective building is significant in retaining and recruiting RN personnel. Our aim is to build on lessons learned in the implementation of PAYD across other RN Training establishments.

"We will deliver a top quality asset that is attractive, both visually and culturally, benefiting all personnel who use it."

HMS Collingwood is Flagship's second multi-million-pound PAYD project across the Naval training estate, with the first building set for completion in December 2007, at HMS Raleigh in Torpoint.