WELCOME FOR INVESTIGATION INTO FAREPAK

CONCERN AS TO LEVEL OF HELP FOR FAMILIES

Angus MP, Mike Weir, has welcomed the statement from Trade and Industry Secretary Alistair Darling that there is to be a Companies Act investigation into the collapse of Farepak, but expressed concern that any compensation from the trade body is likely to be only a “gesture.”

Mr Darling appeared before the Trade and Industry Select Committee, of which Mr Weir is a member, and announced the investigation.  Mr Weir specifically asked whether any such investigation would lead to any compensation.  Mr Darling confirmed that it would not and went on to say that any action by the trade body would be a gesture, not compensation.

Speaking after the meeting, Mr Weir said:

“Whilst I welcome the investigation into Farepak and what went wrong this will do nothing to help those who have been badly hit by the collapse of the company.

“The Government have been in touch with the industry body, the British Retail Consortium, but Mr Darling made very clear that any action by that body would be a gesture and not compensation.  It is not yet clear as to what “gesture” will be made but I would urge the body to take seriously the impact that the failure of this company has had on very many families.”