§ Mr. DEVLINasked if the guarantee bonds supplied by the Local Government Board, Ireland, for county council rate collectors, provide not only a fidelity indemnity, but an indemnity against arrears of rates; if so, do the bonds in use in England for similar purposes contain an indemnity against arrears; is he aware that insurance companies doing guarantee business regard the second indemnity as entitling them to a premium which collectors consider excessive, whilst some companies refuse to accept the additional risk; and what is the reason for the difference in practice in England and Ireland?
§ Mr. BIRRELLThe form of bond prescribed by the Local Government Board requires collectors to lodge the full amount of the rates comprised in their warrants including arrears. When this has been done they are refunded any amounts ascertained to have been irrecoverable. The Board have no information regarding the bonds used in England. Guarantee companies no doubt take into consideration all the elements of risk, and charge premiums accordingly; but the keen competition which exists for this class of business results in rates being charged which cannot be deemed excessive. Many companies of first-class standing undertake the additional risk, though some companies may not desire to do so. The prescribed form of bond is designed to safeguard the interests of the ratepayers, and experience has proved it to be most effective in that respect.