m afraid that your onymous contributor afters, CM May 26)
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has t explained the onfusion" about the 1R-CGI consumer arantee project. If ything, he has made it nse!
In the first place, your ntributor implies that the heme is designed to 3vide insurance cover for ms. This is not so. The ncipal beneficiaries will be I private customers of erseas removal specialists. It is true it is hoped that ms within the scheme will lain certain marketing vantages with high mmissions, banks and ler organisations dealing th migrants (as well as th shipping lines), but the in purpose is to give nsumers an absolute arantee that any money ;I/ pay in advance for a noval overseas will not be rt if the firm goes into uidation before goods are 2. In the second place, the ure of £200 to £400 is not annual fee for belonging the scheme. It is proposed it on joining the scheme all ns should pay an initial iing up charge to cover costs of investigation, cessing and establishing appropriate computer igramme.
3. Your correspondent is rrect in saying that the nual premiums for the veme are not yet known t, although the rate will be ried according to the idit-worthiness of each mpany, it is understood it of greater significance ll be the proportion of mover "at risk" (ie the lount of money paid in vance by individual Imbers of the public for erseas removal work for iich guarantee certificates actually issued).
Thus for some firms the ual amount "at risk" not ly could be quite small in al, but also a small
proportion of the firm's turnover and its net assets. It would also depend on how many individual certificates are issued. (It should be appreciated that the issue of the certificates is compulsory only if customers actually ask for them).
4. Although the target for the starting date has always been January 1 1979, the BAR Overseas Group Council still has to make a formal decision about when the scheme should actually start.
HUGH WILSON, General Secretary, British Association of Removers.