LANCASHIRE'S Police Authority is seeking assurance from the government that the Icelandic bank crisis will not affect local policing.

The Police Authority invested less than £1million, via Lancashire County Council, with the Landisbanki Islands bank in September for a period of three months.

The amount is less than two per cent of the Police Authority's total investments.

The authority, along with the Association for Police Authorities, is now seeking assurance from the government that long term finance for policing will not be affected by the crisis.

It also wants confirmation that the assets invested with Landisbanki Islands bank will receive government protection and that the government will make a commitment to protect police authority assets - essentially tax payers' money - in the future A spokesperson for Lancashire Police Authority said: "The investment reflected the high rating given to this bank by an Independent rating agency.

It is important not be alarmist about this situation. This is an unprecedented event due to the current worldwide circumstances. The deposit is not due for repayment until December 2 2008 and at this stage the bank has not indicated that it will default on the repayment.

"This will not have any impact on the delivery of policing services in Lancashire and we would reassure Lancashire people that it is 'business as usual'.

"Lancashire Police Authority has sound financial management and all its investments are undertaken in accordance with national guidelines and investments only take place with institutions with very high credit ratings. "