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Farepak

Many people in my constituency have been affected by the collapse. One agent has lost £11,000 and is still waiting for a reply from the administrator. Another has lost £18,500, and I know of individual savers who have lost between £150 and £450 each. I want to comment briefly on the role of individuals, and of the directors in particular. Although I go along with the administrators’ applauding the Government and the action that they have taken under the Companies Act 1985, we have to be sensible. Disqualification of directors is not what we are talking about. We have heard a lot of things today, and the disqualification of directors is not the end result that we are looking for. I am told that the administrators have realised £2.5 million and I call on the administrators to ensure that that money goes not to the preferred creditors, but to those who were the savers and the backbone of the industry. Clackmannanshire council and the Alloa and District Round Table are each putting in £5,000, and they are calling on industries and businesses in Clackmannanshire to do the same, so that Farepak savers there can have at least some sort of Christmas. My last comments are to do with the role of the Hamper Industry Trade Association. We know that it has five members, including Farepak, and that it has a voluntary and unenforceable code of practice, with a bond of £100,000. HITA called on its members to give due attention to safeguarding their customers’ money. I wrote to HITA on 25 October and received a reply from the secretary. He wrote that the collapse was extremely unfortunate but that he is on holiday from 2 November until the 12th. On behalf of a number of my constituents, I invited him to meet hon. Members at the House. He refused to do so, but although others have had a part to play, HITA and its member organisations should be called to the House to explain their role, so that Members can explain it to those who have lost their money.