asked the Chancellor of the Exchequer whether Her Majesty's Government's sanctions policy in relation to companies alleged to have breached the pay policy applies to the Crown Agents; and, if so, under what authority these sanctions are applied.

The Crown Agents have been asked not to place orders with companies breaching the pay policy guidelines when making purchases for Her Majesty's Government, and to take Government policy into account in the placing of contracts on their own behalf. No statutory authority is required to apply discretionary powers.

asked the Chancellor of the Exchequer how many United Kingdom companies who are alleged to have breached the pay policy will be unable to fulfil contracts or to supply replacements or services relating to Her Majesty's Government's overseas aid programme; and which countries and development projects will be affected.

Currently, 35 firms are subject to discretionary action, and the Ministry of Overseas Development, like all other Government Departments, takes this into account in conducting its business. It is not possible to say in advance which, if any, countries or projects may be affected.