15 May 2007

MP WELCOMES NEW SAFEGUARDS TO PROTECT SAVERS IN CHRISTMAS HAMPER SCHEMES

MARTYN JONESMinister welcomes appointments to new Christmas hamper trade body.

MARTYN JONES MP (( MP (Clwyd South) has welcomed new safeguards to help prevent a repeat of the Farepak collapse that affected many families last Christmas.

The government has secured industry agreement to set up the new Christmas Pre-payments Authority, following the collapse of Farepak, which saw thousands of families across the UK, lose their Christmas savings.

The new Authority has appointed a Chairman and Director of Consumer Affairs to oversee various pre-payment schemes and to ring-fence the money of Christmas hamper savers.

In future, pre-payments made to Christmas hamper schemes will have to be held in independently controlled ring-fenced trust accounts, similar to the scheme that protects National Lottery prize money in the event of Camelot becoming insolvent.

The Department of Trade and Industry has worked with the industry to ensure these arrangements are monitored by a new, strengthened Authority with a reinforced code of practice to monitor companies and ensure the trust accounts are established and operated effectively.

Commenting on the news, Martyn Jones MP said:

"Many families in my constituency were affected by the collapse of Farepak. So I am delighted that the Government have acted swiftly to prevent a repeat of last year's fiasco.

"The Government promised they would act to protect people who pay into Christmas hamper savings schemes, and the new Authority is a major step in ensuring the new safeguards succeed."