§ Mrs. RocheTo ask the President of the Board of Trade 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. [29425]
Mr. John. M. Taylor[holding answer 20 May 1996]: My Department follows the advice issued by the central unit on procurement in its guidance note No. 48 "Bonds and guarantees", copies of which are available in the Libraries of both Houses.
The guidance note makes clear that bonds are not always necessary and are not a 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.
The other information is not held centrally and could be provided only at disproportionate cost.