§ Mr. Gordon PrenticeTo ask the Minister of Agriculture, Fisheries and Food if he will list the contracts entered into with private sector companies for the provision of goods or services since May 1997 where penalty clauses were triggered for non-performance; and if he will make a statement. [122024]
§ Mr. MorleyPenalty clauses are unenforceable under the law of contract, and contracts let by core-MAFF and its Agencies do not contain them. Contracts let by the Ministry do, where appropriate, contain contractual provisions setting out remedies for non-performance of contractual obligations by contractors but these are enforced only when contract management and disputes resolution procedures have been exhausted.