§ Mr. Gordon PrenticeTo ask the Secretary of State for the Environment, Transport and the Regions if he will list the contracts entered into with private sector companies for the provision of goods or services since May 1997 where penalty clauses were triggered for non-performance; and if he will make a statement. [122011]
§ Ms Beverley HughesIt is not the policy of the Department of the Environment Transport and the Regions to use penalty clauses in its contracts as they are not legally enforceable. Legally valid clauses which require the contractor to make payments when in default have been invoked in 17 contracts since May 1997.