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Farepak families fund is launched Farepak families fund is launched
(about 1 hour later)
A new fund is being set up to help the thousands of families affected by the collapse of the Farepak hamper firm.A new fund is being set up to help the thousands of families affected by the collapse of the Farepak hamper firm.
The Minister for Consumer Affairs, Ian McCartney, said the Farepak Response Fund was being established with help from York-based charity Family Fund.The Minister for Consumer Affairs, Ian McCartney, said the Farepak Response Fund was being established with help from York-based charity Family Fund.
He said Tesco had pledged £250,000 and called on other firms to help.He said Tesco had pledged £250,000 and called on other firms to help.
Swindon-based Farepak ran a savings scheme for 150,000 people for vouchers and Christmas hampers, but collapsed in October without offering compensation.Swindon-based Farepak ran a savings scheme for 150,000 people for vouchers and Christmas hampers, but collapsed in October without offering compensation.
In another development, Sainsbury's has agreed that Farepak customers can get 25% of the value of their savings in Sainsbury's vouchers.In another development, Sainsbury's has agreed that Farepak customers can get 25% of the value of their savings in Sainsbury's vouchers.
'Spirit of Christmas''Spirit of Christmas'
Mr McCartney announced the creation of the fund after a House of Commons debate on Farepak's collapse.Mr McCartney announced the creation of the fund after a House of Commons debate on Farepak's collapse.
"If you are a multinational, national or local firm, it gives you the chance to make a donation, great or small," he said."If you are a multinational, national or local firm, it gives you the chance to make a donation, great or small," he said.
Let's get resouces to people who need them Minister for Consumer Affairs, Ian McCartneyLet's get resouces to people who need them Minister for Consumer Affairs, Ian McCartney
The Family Fund is a registered charity covering the whole of the UK, funded by government money, which provides grants to families with severely disabled children.The Family Fund is a registered charity covering the whole of the UK, funded by government money, which provides grants to families with severely disabled children.
Mr McCartney said that during 2006, it had given out grants totalling £27m to 46,000 families.Mr McCartney said that during 2006, it had given out grants totalling £27m to 46,000 families.
He said the Farepak fund would be independent and would accept contributions from any organisation wishing to help.He said the Farepak fund would be independent and would accept contributions from any organisation wishing to help.
"The fund is about a spirit of Christmas," he said. "Let's get resouces to people who need them.""The fund is about a spirit of Christmas," he said. "Let's get resouces to people who need them."
Calling the situation a "national emergency", he also asked MPs to give a day's pay towards the fund and said he was in negotiations with the London Stock Exchange about a possible fundraising day there.Calling the situation a "national emergency", he also asked MPs to give a day's pay towards the fund and said he was in negotiations with the London Stock Exchange about a possible fundraising day there.
Angry MPsAngry MPs
Earlier in the Commons, Labour MP for Birkenhead, Frank Field, attacked the role of HBOS in the collapse of Farepak.Earlier in the Commons, Labour MP for Birkenhead, Frank Field, attacked the role of HBOS in the collapse of Farepak.
HBOS was Farepak's banker and Mr Field said it should bear a heavy responsibility for the misery caused.HBOS was Farepak's banker and Mr Field said it should bear a heavy responsibility for the misery caused.
The Labour MP for Swindon South, Anne Snelgrove, told the Commons that her three "Christmas scrooges for 2006" would be HBOS, hamper trade industry body HITA, and the British Retail Consortium (BRC). Some MPs said they wanted a protest outside HBOS's headquarters in Edinburgh.
And the Labour MP for Swindon South, Anne Snelgrove, told the Commons that her three "Christmas scrooges for 2006" would be HBOS, hamper trade industry body HITA, and the British Retail Consortium (BRC).
She described the BRC as "cruel" for initially saying it could help those who lost money, but then changing its mind.She described the BRC as "cruel" for initially saying it could help those who lost money, but then changing its mind.
The BRC had said this was because Farepak's customer database was too complicated.The BRC had said this was because Farepak's customer database was too complicated.
'Goodwill gesture''Goodwill gesture'
Sainsbury's has become the first major retailer to give some help to Farepak members, offering vouchers to be spent in its stores.Sainsbury's has become the first major retailer to give some help to Farepak members, offering vouchers to be spent in its stores.
The supermarket said it would need the help of Farepak agents, who hold customer details, to ensure its plan was a success. Sainsbury's hopes to despatch the vouchers by the beginning of December.The supermarket said it would need the help of Farepak agents, who hold customer details, to ensure its plan was a success. Sainsbury's hopes to despatch the vouchers by the beginning of December.
It said: "While Sainsbury's has no involvement with Farepak and its operation, we now know that many of Farepak's customers had planned to use their savings to buy Sainsbury's vouchers.It said: "While Sainsbury's has no involvement with Farepak and its operation, we now know that many of Farepak's customers had planned to use their savings to buy Sainsbury's vouchers.
"We hope that through this goodwill gesture, we have been able to give these customers that opportunity and we have gone some way to mitigating this difficult situation.""We hope that through this goodwill gesture, we have been able to give these customers that opportunity and we have gone some way to mitigating this difficult situation."
The Department of Trade and Industry has launched an investigation into what happened at the company.The Department of Trade and Industry has launched an investigation into what happened at the company.
Administrators said that no orders would be fulfilled after the company was taken into administration on 13 October.Administrators said that no orders would be fulfilled after the company was taken into administration on 13 October.
Some of those affected are understood to have lost thousands of pounds they had saved in vouchers ready to spend at Christmas.Some of those affected are understood to have lost thousands of pounds they had saved in vouchers ready to spend at Christmas.