No Christmas Cheer For Farepak Savers in Falkirk Council

There was no Christmas cheer for hard pressed Farepak customers with Falkirk Council's Labour / Tory Administration.

SNP Councillor, John Constable had sought to win the support for Farepak savers for the same treatment from government as savers with the Northern Rock Building Society. However, this was defeated by heard hearted New Labour, Conservative and Independent Councillors.

It is around 14 months since the savings company, Farepak, went into administration robbing hundreds of customers of Christmas last year. So far the 5p in the £ promised by the liquidators has yet to be paid.

However, it was only when the UK Labour government announced a £25 billion guarantee for Northern Rock customers that highlighted the difference in the manner savers with both organisations are treated by the London government.

At the meeting of Falkirk Council held on 5 December SNP Councillor John Constable sought to highlight the contradiction in the manner both groups were regarded by the government and sought the support of councillors in a demand for parity of treatment for Farepak customers.

However, heard hearted members of the council coalition administration refused to back the SNP and insisted that the 5p in the £ was all Farepak savers could expect from the process.

An angry Cllr Constable said,

"The decision of Falkirk Council's Labour / Tory coalition to shun Farepak customers merely adds insult to considerable injury.

Northern Rock savers have had their savings guaranteed while Farepak customers have been thrown to the wolves by this callous Labour government.

Those who lost their savings in the Farepak collapse were generally those in the low income bracket trying to keep themselves out of debt as the government had advised.

They were entitled to expect some protection from the government in the regulation of the industry they were part off. Instead they were badly let down by the Department of Trade and Industry.

The government could have made amends by making the token Family Fund the equivalent of the 95p in the £ the savers are losing out on, in the same manner they have guaranteed the savings of Northern Rock savers but didn't. That speaks volumes of the priorities of New Labour."