By Bryan Kay

SUPERMARKETS AND politicians united yesterday to provide some of the cash lost by thousands of people in the collapse of Christmas savings company Farepak.

The minister for consumer affairs, Ian McCartney, announcing the creation of the Farepak Response Fund, said Tesco had pledged £250,000. Rival chain Morrisons later announced that it was donating £150,000.

An estimated 150,000 people, including many in Fife and Tayside, have lost between £27 million and £40 million to the Swindon firm.

In another development, Sainsbury’s agreed with Farepak’s administrator to honour 25% of the value of vouchers the chain had in the scheme. Department store John Lewis has offered a similar package.

Calls have been made urging the entire retail sector to support the people who lost out.

Mr McCartney said customers might also get help from company administrators, but warned that if they did it would be “pennies not pounds.” He then went on to call last night on MPs to donate a day’s pay to help families whose Christmas has been wrecked.

In a Commons debate, he declared the situation a national emergency and urged colleagues to donate at least £165 as he revealed that the relief fund for victims of Farepak had been created.

Northern Ireland Secretary Peter Hain said he would be pleased to hand over a day’s worth of his £136,677 salary, around £374. Most MPs would have constituents who were affected, he added.

However, other leading Government figures were less eager. Chancellor Gordon Brown said he supported “individual donations” but stopped short of saying that MPs should donate a day’s salary.

The Prime Minister’s official spokesman refused to be drawn on whether Tony Blair would give a day’s pay.

A Conservative Party spokesman said it would be “up to individual MPs.”

Tory leader David Cameron has yet to consider whether he will hand over his day’s salary.

During the debate, MPs rounded on the firm and Sir Clive Thompson, chairman of its parent company, European Home Retail.

South Swindon’s Labour MP Anne Snelgrove branded Sir Clive a “modern-day Scrooge” and Linlithgow and East Falkirk Labour MP Michael Connarty called on MPs to boycott a champagne reception to be held for Scottish politicians by Farepak’s bankers, Halifax Bank of Scotland.

Livingston Labour MP Jim Devine said Farepak customers had been the victims of “legalised money laundering” and called for the Government’s Serious Fraud Office to investigate the collapse.

Mike Weir, the SNP trade and industry spokesman, said it was vital all those who were involved in the demise of Farepak accept a moral responsibility and offer substantial sums.

Dundee West MP Jim McGovern used the Commons debate to slam HBOS over its role. He questioned the business practices of the bank and its commitment to corporate social responsibility.

Speaking afterwards, he said, “In the past I and many of my colleagues have praised HBOS for their role in providing fee-free ATMs to those in our society most in need of them.

“However, HBOS’s reputation for corporate social responsibility is rapidly undermined when you read the history of this case.

“First, HBOS refused to allow a takeover for Farepak which would have allowed Christmas to be saved for the Farepak customers.

“Turning down this offer was simply a company working out that letting Farepak fold was the best way to minimise their losses.

“Secondly, HBOS knew about the financial state of Farepak in August when their shares were withdrawn and yet the administrators were not called in until October.

“Thirdly, HBOS clawed back £1 million of overdraft from Farepak members’ money each month.

“Surely they knew that any money that was going to them was not going to be going to those who had been saving for Christmas?”

In the wake of Farepak’s demise, the British Retail Consortium had pledged a “goodwill gesture,” but admitted last week that the situation was more complicated than initially thought and that it would not be able to deliver a solution by Christmas.