§ Mrs. RocheTo ask the Secretary of State for the Environment 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 fewer than(a) 100, (b) 50 and (c) 20 employees. [29419]
§ Sir Paul BeresfordThis Department does not have a formal policy on the use of performance bonds but takes direction from published guidance notes issued by HM Treasury, copies of which are available in the Libraries of both Houses. Each major project is judged on 45W its merits, including whether or not the use of performance bonds would be appropriate. The decision to include the requirement for a performance bond will be made independent of the size of the contractors concerned. There have been no cases of performance bonds being enforced by this Department in the last five years.