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Farepak

I pay tribute to my hon. Friend the Member for South Swindon (Anne Snelgrove) for securing this debate. Let us be very clear what the debate is about: it is about legalised money-laundering, from the poor to the rich. Sir Clive Thompson is, without doubt, the 21st-century equivalent of the sheriff of Nottingham. I hope that later the Minister will play the role of Robin Hood. This is an absolute scandal involving the organised poor. I do not say that in a patronising manner. Those people did not use loan sharks, bank overdrafts or credit cards; they saved. How many people are involved? Farepak had between 26,000 and 29,000 agents. If each of them had 10 clients, it would mean that Christmas has, in effect, been cancelled for 300,000 people. Serious questions must be asked about the company. How long had it been in financial difficulty? It left the Direct Selling Association in 2004; if it were a member of the DSA today, it would have to compensate the people who lost their money. That suggests that it has been in difficulties for many years. Staff who worked in its headquarters have said to me that they knew that the company was in trouble last December. Financial newspapers were flagging up problems in June. The share price crashed in August, yet Farepak continued to take money when the vast majority of people had paid over the money. My constituent Carol Gullian has lost £12,500 as an agent. At a public meeting held in Blackburn, West Lothian, last week, more than 100 people turned up who had lost more than £100,000 between them. That is the extent of the scandal. Farepak were still writing letters to my constituents in March telling them that everything was okay, not to worry and that everything would be good this year. HBOS made £4.8 billion profit last year. I have been told by somebody closely involved in unfairpak.co.uk that a rescue plan was organised in June this year and that £3.5 million was needed from HBOS, but it did not put the money in. If that is the case, HBOS directors need to be brought to the House to give a full explanation of their role in that deal.