§ Mr. Peter AinsworthTo ask the Secretary of State for Environment, Food and Rural Affairs how many cases there are of disputes over payment between her Department and contractors employed during the foot and mouth epidemic; and what the total value is of unpaid disputed invoices. [53248]
§ Margaret Beckett[holding answer 29 April 2002]: The accounts of the principal contractors used by DEFRA during the FMD outbreak have been the subject of detailed examination. This has been an extensive exercise as the contractors concerned carried out work to the value of hundreds of millions of pounds involving the generation of tens of thousands of invoices.
As part of the verification and substantiation of contractor invoices, the Department has employed forensic accountants to examine the invoices of 107 of the largest contractors. In total these 107 companies have submitted invoices worth £474 million and, to date, the Department has paid £402 million in respect of these claims. The Department is withholding payment of the 244W remainder until it is satisfied that contractors have provided sufficient evidence of work commissioned and carried out.
Wide-ranging issues have arisen on the accounts. These include legal issues such as matters of contractual interpretation, forensic accountancy issues and evidential issues involving the assessment of both a large amount of documentation and proofing of witnesses.
Some of these disputes will inevitably result in court proceedings although DEFRA remains committed to resolving matters by mediation where appropriate.