§ Mr. Hendersonasked the Secretary of State for Scotland what advice he gives to local authorities on obtaining performance bonds from contractors of capital works.
§ Mr. MillanThe standing advice is that the decision whether to ask for a performance bond, which is for the local authority, should be taken on a consideration of each contract, and that in cases of doubt bonds should be sought.
§ Mr. Hendersonasked the Secretary of State for Scotland what is his practice in giving borrowing consent to local authorities for contracts where no performance bond is requested from the contractor.
§ Mr. MillanLocal authorities do not require my consent to borrowing proposals. Consent to incur liability to meet capital expenses under Section 94 of the Local Government (Scotland) Act 1973 has been granted to local authorities without any condition as to performance bonds, the need for which is a question for each local authority in relation to particular contracts.
§ Mr. Hendersonasked the Secretary of State for Scotland which local authorities require performance bonds from contractors of capital works.
§ Mr. MillanThe securing of performance bonds from contractors of capital works for local authorities is a matter for the authorities themselves, and no record of this is held centrally.
§ Mr. Hendersonasked the Secretary of State for Scotland if he is satisfied that current legislation on the requirement of performance bonds from contractors of capital works by local authorities is adequate.
§ Mr. MillanThere is no such legislation.