DEAR EDITOR —

I was intrigued to read, in the article ‘Police do not fear a financial freeze up’ (Western Telegraph, October 22nd) that Dyfed-Powys Police has been able to salt away £2m in Icelandic banks.

How can the police authority accumulate surplus money? My dictionary defines a surplus as ‘In excess of what is needed’. If not needed, why was it generated? Remember, all of the authority’s annual budget is paid for by public taxation.

Secondly, the inference is that the interest on the capital is used to improve services. Why does the authority need to generate income this way? And why cannot improved services be budgeted for in the normal way?

Thirdly, why were the investments ‘for a fixed term and could not be withdrawn’. Presumably the authority could say the money was to be kept in case of an emergency. If that were the case, surely the money would need to be accessible at short notice?

JAMES GLENISTER 54 St Davids Road, Pembroke.