§ Mrs. Curtis-Thomas
To ask the Secretary of State for International Development what measures are in place to deal with Central American garment factories that are found not to comply with the relevant codes of conduct. 
Mr. Gareth Thomas
If a Central American garment factory is found not to comply with codes of conduct enshrined in national legislation, the relevant government institution is responsible for taking remedial actions, as laid out within the legislation. If, however, a garment factory is found not to comply with the corporate codes of conduct specified by the retailers with which the garment factory has a contract, remedial actions are identified by the independent monitor by the retailers to ensure compliance. If these actions are not taken, the factory is liable to be fined by the retailers, or in serious breaches, to losing the contract. The threat of losing a contract is a powerful incentive for a factory to implement these actions.