Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://www.socialistparty.org.uk/issue/463/1730

From The Socialist newspaper, 16 November 2006

Farepack

Fraud hits poor at Christmas

THE MILLIONAIRES are falling out. Sir Clive Thompson, director of Farepak Christmas savings club accuses Halifax Bank of Scotland (HBOS - one of Britain's big five banks with 4.8 billion profits last year) of pulling the plug on Farepak's massive overdraft. Over 150,000 low-income families were abandoned and could lose around 40 million.

Farepak told working-class people they'd take the worry out of Christmas. By weekly savings, they promised to cover all the season's costs with vouchers for spending in different stores and a Christmas hamper.

Unfortunately, everything was done for profit by a big business - Farepak was part of European Home Retail (EHR) and its executive director Nicholas Gilodi-Johnson, stands to inherit 75 million.

Thompson himself, now a director of EDF energy, BAT tobacco etc., used to be chief of Rentokil Initial, and president of the CBI, the bosses' 'union'. 'Sir Clive' argued that the minimum wage should be no more than 3.20 an hour (he was on 466 an hour at the time).

In its greed to expand, it looks like EHR stole money from the savers but still could not avoid serious cash-flow problems. When HBOS bank said it was beyond saving, Farepak stopped trading in October. They had collected all the savers' money but sent out no goods and left nothing secured for the savers. EHR went into receivership next day.

Farepak's bosses are all right. Thompson was paid a 100,000 consultancy fee. Chief executive William Rollinson got his 275,000 salary while Gilodi-Johnson took a 445,000 share dividend back to his impressive collection of mansions.

Meanwhile, having committed thousands of pounds to these corporate low-lifes, 150,000 people face a skint Christmas. HBOS failed to protect Farepak's customers. After taking massive amounts from Farepak's overdraft payments, they pulled the plug on the firm.

These companies must not be allowed to walk away. People are being urged to give to a special fund to recompense some families. Multinationals like Tesco, who gain billions from frenetic Christmas spending, have given a pittance.

The culprits must pay, not generous workers who earn little more than Farepak's savers. Socialists fight for the big companies and banks etc. to be taken over and run as part of a planned economy that would act in the interests of working-class people.

At the very least, the campaign to get a fair deal for these savers must fight for HBOS' profits and the Farepak's directors' wealth to be used to reimburse all the money that the savers paid in to these unscrupulous fraudulent companies.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 16 November 2006:

Millions reject war and occupation

Iraq, corruption and wealth gap send Republicans into a tail-spin

Palestine: "No excuse can justify this atrocity"


Socialist Party NHS campaign

Join the fightback - save the NHS

Save mental health services

Don't 'unfetter' drug giants


What we think

Courts cannot fight far right


Special feature

Is capitalism killing football?


Socialist Party news and analysis

Fraud hits poor at Christmas


Socialist Students

Fight for free education!

Fighting start for the Campaign to Defeat Fees


Socialist Party workplace news

Respect Organising Fighting Unions Conference

Visteon workers:: Vote 'no' to concessions

JJB Sports on strike

No fun at Game!


 

Home   |   The Socialist 16 November 2006   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Profits:

triangleAirwave jobs strike

triangleBosses get pay-offs, workers get layoffs

trianglePublic services

Reports and campaigns

Reports and campaigns

7/12/17

RMT

Anti-DOO lobby of Liverpool's transport committee

7/12/17

Blacklisting

Unite protest against blacklisting

6/12/17

Donald Trump

Mobilise to stop bigoted billionaire Donald Trump's state visit to Britain

6/12/17

Transport

Arriva bus strikers stand firm

6/12/17

Pensions

BT pensions review - oppose the attacks on the pension schemes

6/12/17

PCS

Driving examiners walkout hits first day of new test

6/12/17

Newham

School staff strike against privatisation

6/12/17

Rail

Brutal rail privateer Abellio takes over Midlands rail services

6/12/17

PCS

PCS Left Unity celebrates 40th anniversary at annual conference

6/12/17

North Yorkshire

Court maintains injunction against fracking protesters

6/12/17

Waltham Forest

Waltham Forest Universal Credit protest

6/12/17

Coventry

Coventry Socialist sales hit 1,000

6/12/17

TUSC

TUSC conference to debate 2018 elections

6/12/17

Liverpool

Liverpool John Moores Uni landslide for Socialist Students

6/12/17

Kirklees

Plans to launch no-cuts campaign at Kirklees College

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle8 Dec Local government pay: fight for the full 5% claim

triangle6 Dec Strikers rally in Liverpool

triangle6 Dec Corbyn's Labour can defeat Tories with socialist programme

triangle5 Dec Victory at Glenfield shows people power can save our NHS

triangle5 Dec Labour council Blairites deselected

triangle30 Nov Victory: Glenfield Children's Heart Centre saved!

triangle30 Nov Dramatic retelling of Grunwick strike

More ...

triangle11 Dec Leeds Socialist Party: Campaigning workshop

triangle11 Dec Bristol North Socialist Party: Christmas Quiz

triangle12 Dec Birmingham South East Socialist Party: Can the Labour Party be changed?

triangle12 Dec Liverpool Socialist Party: Fighting council cuts

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

December 2017

November 2017

October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice

V2