Speaking following a statement by Vince Cable on executive pay, SNP Business and Enterprise spokesperson Mike Weir MP challenged the UK Business Secretary to show there is substance behind the rhetoric on ‘moral capitalism’ and seek justice for Farepak savers.

Mr Weir has called on the UK Government to step in and speed up the compensation process for Farepak families after receiving a letter from liquidators confirming that 207 agents and customers of the Christmas saving scheme have died since the company’s collapse five years ago.

Farepak collapsed in October 2006 owing £37m to more than 119,000 savers (20,000 customers in Scotland). More than five years later, savers are likely to recover just 5 pence in the pound, while the final bill for the administrators and their legal advisers has already exceeded £8 million.

Mr Weir said:

“We hear a lot of talk about moral capitalism by Coalition Ministers, but there is not much evidence of action when it comes to helping those who have been failed by the system.

“Moral capitalism should not just be about bankers’ bonuses but about helping ordinary people and, as Business Secretary, Vince Cable could start by demanding justice for the victims of the Farepak collapse.

“It is now five years since the company collapsed, yet thousands of ordinary savers, more than 200 of whom are now dead, have received absolutely nothing whilst the liquidators have pocketed fees in excess of £8million.

“Savers are likely to recover just 5 pence in the pound, while the final bill for the administrators and their legal advisers has already exceeded £8 million.

“Had they been savers in a bank their savings would have been guaranteed, but because they were savers in Farepak they got absolutely no protection and ended up as ordinary creditors in a liquidation.

“Neither the previous Labour nor present Coalition Government have done anything to help them.

“If there is really any substance behind the rhetoric of moral capitalism then Coalition Ministers must now exert pressure to get justice for Farepak savers, otherwise this will simply be another in a long line of empty gestures.”