A spokeswoman said: "We can confirm that Humberside Police Authority, alongside many public sector organisations, has investments of £5.57 million in the Icelandic banking system - £1 million in Singer and Freidlander, a subsidiary of Kaupthing, and £4.57 million in Heritable a subsidiary of Landsbanki."

This information has been provided to both the Home Office and the Association of Police Authorities (APA).

"We understand that the APA have a meeting with Police Minister Vernon Coaker this afternoon, October 9, and wait to hear the outcomes of this meeting.

The spokeswoman said: "The money represents part of the Authority's long term reserves and we can confirm that there will be no immediate impact on front line policing activities. However, it is clearly a matter of serious concern and along with the other Authorities which have found themselves in this position we are monitoring the situation closely, and will continue to so do.

On behalf of affected Police Authorities, the APA is seeking:

1 Assurances from Government that long term finance for policing will not be affected due to the recent financial crisis involving Icelandic banks.

2 Government confirmation that any Police Authority assets invested with Landsbanki or other Icelandic banks will receive Government protection following the recent financial crisis.

3 A commitment from Government that Police Authority assets with Icelandic banks, which is of course tax-payers money, will be protected for the future.

The outcome of the talks with the Government, including those between the Local Government Association (LGA) and Ministers and those of the APA and the Home Office, will be critical.

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