§ Mrs. RocheTo ask the Secretary of State for the Home Department what is his Department's policy on the use of performance bonds; in what circumstances they are used; what was the total sum paid by bond in each of the last five years; and if his Department requires bonds from businesses with under(a) 100, (b) 50 and (c) 20 employees. [29422]
§ Mr. HowardMy Department follows advice on the use of performance bonds which is set out in the central unit on procurement's guidance note No. 48, "Bonds and guarantees", copies of which are available in the Library. This guidance makes clear that bonds are no substitute for considered judgments about the risks of a particular contract and the capabilities and financial resources of the available contractor.
My Department has not received any payments from performance bonds in the last five years.