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Volume 456: debated on Monday 29 January 2007

To ask the Secretary of State for the Home Department against what criteria his Department is entitled (a) to withhold payments from the contractor, (b) to fine the contractor and (c) to terminate the contract with the contractor with regard to the contract with Kalyx concerning Harmondsworth detention centre. (114065)

The contract between the Secretary of State for the Home Department and Harmondsworth Detention Services Ltd. contains a range of remedies. In addition to a right of set off, there is also a mechanism for compensating the authority for performance failures.

The contract does contain provisions allowing the authority to terminate the contract in certain circumstances. If the breach of contract is capable of being remedied, the contractor must be given an opportunity to rectify the breach before it is possible to proceed to termination.