Unionist joins Hain in Farepak fund donation
Lady Sylvia Hermon today became the first Northern MP to declare she will donate a day’s salary to families affected by the collapse of the Farepak Christmas Savings Scheme.
The Ulster Unionist MP confirmed the move after Northern Secretary Peter Hain also pledged a day’s salary to the fund set up by British Consumer Affairs Minister Ian McCartney.
Following Mr Hain’s announcement, Lady Sylvia, the MP for North Down, said: “It’s a really good idea because it will make a difference to the lives of so many children at Christmas.
“After all, it is the season of goodwill.”
Thousands of families across the UK were stung when the Swindon-based savings firm Farepak folded last month.
The company ran a savings scheme for an estimated 150,000 people, which was meant to provide them with vouchers to spend in major retailers like Argos and Woolworths and a Christmas hamper.
It was estimated on average Farepak customers have lost about £400 (€596.70) each but some have lost closer to £2,000 (€3,000).
Some customers have accused Farepak of accepting payments from them even though it knew it was in trouble to pay some of its overdraft.
Mr McCartney yesterday announced the Farepak Response Fund was being established with help from York-based charity Family Fund and he urged MPs to contribute a day’s salary.
Democratic Unionist, Sinn Féin, Ulster Unionist, SDLP and Alliance Party Assembly members were today considering whether they would join in donating a day’s salary to the fund.
After he decided to donate one day’s salary, Northern Secretary Peter Hain urged retailers to play their part in making Christmas easier for families who lost savings when the scheme collapsed.
“The collapse of Farepak is a disaster for many thousands of families who have put their hard-earned money into the scheme,” he said.
“Christmas is meant to be a happy occasion. Instead, those families are now facing hardship and distress.
“As MPs, many of us have constituents who are affected by this. The establishment of the Farepak Response Fund is an important step towards helping families in very difficult circumstances, and I am pleased to pledge my support by donating a day’s salary to the fund.
“I congratulate my colleague Ian McCartney for leading the way on this.”
Banking group HBOS today announced it would donate £2m (€3m) to Farepak customers.
Halifax, which formed HBOS when it merged with the Bank of Scotland, was criticised for its role as banker to Farepak’s parent company.
Tesco has also pledged £250,000 (€373,000) and urged other firms to help.
Sainsbury announced Farepak customers could get 25% of the value of their savings in vouchers for their stores.
Mr Hain said it was vital retail businesses would make a proper contribution.
“Christmas is a time of bumper profits for many firms,” he said.
“I applaud the contributions that some companies have already pledged and call on others to do the same. Christmas should not just be about making money.”
