§ Mr. Kenneth Clarke
asked the Secretary of State for the Environment for how long it has been the practice of his Department to send internal auditors to companies tendering for public contracts to examine the books of the company to discover the level of recent pay settlements; and on how many occasions this practice has been followed.
§ Mr. Shore
It is not the practice of the Department to have the books of companies examined specifically for the purpose of discovering the level of recent pay settlements. It is, however, normal and long-standing practice to verify labour and other costs when reimbursement under the contract is based on the actual amounts paid by the contractor; a provision permitting this practice is included in the contract conditions.