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Farepak families fund is launched Farepak families fund is launched
(20 minutes 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.
Family grantsFamily grants
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 resources to people who need them Minister for Consumer Affairs, Ian McCartneyLet's get resources 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.
'Spirit of Christmas''Spirit of Christmas'
He said the Farepak fund, which will grant vouchers to affected families, would be independent and accept contributions from any organisation or sector wishing to help.He said the Farepak fund, which will grant vouchers to affected families, would be independent and accept contributions from any organisation or sector wishing to help.
"The fund is about a spirit of Christmas," he said. "Let's get resources to people who need them.""The fund is about a spirit of Christmas," he said. "Let's get resources 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.
After announcing its donation, Tesco said: "While the circumstances surrounding Farepak are not in any way of our making, we are very concerned about the impact on those affected.After announcing its donation, Tesco said: "While the circumstances surrounding Farepak are not in any way of our making, we are very concerned about the impact on those affected.
"We believe the DTI scheme offers the best means of helping all Farepak customers to enjoy their Christmas.""We believe the DTI scheme offers the best means of helping all Farepak customers to enjoy their Christmas."
And Argos said it was "currently investigating ways in which we can reach out to Farepak customers to help them out as we approach the Christmas season".And Argos said it was "currently investigating ways in which we can reach out to Farepak customers to help them out as we approach the Christmas season".
Marks & Spencer chief executive Stuart Rose, speaking before the Farepak Response Fund was announced, had said M&S would be willing to contribute to a scheme to help once one was in place.Marks & Spencer chief executive Stuart Rose, speaking before the Farepak Response Fund was announced, had said M&S would be willing to contribute to a scheme to help once one was in place.
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.
Mr McCartney said he hoped HBOS would contribute to the fund. But some MPs said they wanted a protest outside HBOS's headquarters in Edinburgh.Mr McCartney said he hoped HBOS would contribute to the fund. But 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). And the Labour MP for Swindon South, Anne Snelgrove, said in the Commons that the demise of Farepak was the "nightmare before Christmas" for hamper savers.
She described the BRC as "cruel" for initially saying it could help those who lost money, but then changing its mind. After the welfare fund was announced she said: "At last we now have a system where we can bring in money from big business and others who want to donate."
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 Fairpak.The Department of Trade and Industry has launched an investigation into what happened at Fairpak.
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.