§ Mr. Redmond
To ask the Secretary of State for Scotland what contracts his Department and his agencies have with Serco Ltd.; what is the current cost; when each contract ends; what are the penalties involved should he seek early termination of the contract; and if he will make a statement. 
Lord James Douglas Hamilton
The Scottish Office has the following contracts with Serco Ltd.:
- (i) the provision of facilities management services at Victoria quay, Edinburgh at a cost of approximately £1.6 million over five years. The contract will expire on 18 September 2000 but it contains provision for up to two one-year extensions, making the latest possible contract end date 18 September 2002. The Department is entitled to terminate the contract at any time without penalty upon giving six months' notice in writing.
- (ii) the installation and maintenance of traffic information and control systems across the monitoring network in the central belt of Scotland at a total cost of £18 million. The contract was awarded in October 1993, the contract length being two years six months and a three-year maintenance period thereafter which will end in April 1999. Should the department decide to halt the installation there would be no penalties; merely an obligation to meet any costs outstanding or imputed.
- (iii) the maintenance of the Scottish Office electrical and electronic equipment throughout the road network at a cost of £180,000 per annum. The contract will expire in April 1997. The department is entitled to terminate the contract at any time without penalty upon giving 12 months' notice in writing.