§ Mr. Wigley
asked the Secretary of State for the Environment if he will take steps to ensure that contracts entered into by registered housing associations for building undertakings will incorporate a requirement for the inclusion in such contracts of performance bonds.
§ Mr. Stanley
No. Such a requirement would cost of the order of £6 million in the current year. It is better to meet any additional costs arising as a result of the non-performance of a contract by the use of housing association grant, if necessary.