§ Mrs. RocheTo ask the Secretary of State for Foreign and Commonwealth Affairs 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. [29420]
57W
§ Mr. HanleyThe FCO diplomatic wing does not use performance bonds in the United Kingdom. Performance bonds are used in overseas countries where it is standard practice to use such bonds, and where the risk of technical or financial failure is high.
The ODA uses performance bonds in accordance with normal commercial practice on capital aid contracts between overseas clients and United Kingdom contractors.
The FCO (DW) has not called in any performance bonds during the last five years. The ODA has called in one; the money was used to complete the contract.
In both the FCO (DW) and ODA, information about performance bonds is not held on companies according to the number of employees.