Why did Australian Type 26s appear more expensive?

Why was Britain charging Australia so much more for Type 26 than it paid for its own ships?

Australia was building its ships domestically, and rebuilding that construction capability added costs that differed from those of Britain's existing production base.

During a visit to Australia, Alex Clarke was asked why Britain was charging so much more for Australia's Type 26s. Australia was building its own ships. Rebuilding domestic construction capability changes the cost basis of the programme. British prices reflect an existing industrial base, even though British procurement itself receives strong criticism. Local industrial costs therefore differ from a price supposedly charged by the exporting country.