§ Mrs. RocheTo ask the Secretary of State for Wales 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. [29429]
§ Mr. HagueAdvice on the use of performance bonds is set out in the central unit on procurement's guidance note No. 48 "Bonds and guarantees", copies of which are available in the Libraries of both Houses. This guidance makes it clear that bonds are not always necessary and are no substitute for considered judgments about the risks of a particular contract and the capabilities and financial resources of the available contractor. These factors will vary for each contract independent of the size of the contractor. Information regarding the total sum paid by bond in each of the last five years is not held by my Department