EHR DIRECTORS MUST BE INVESTIGATED FOR RAID ON FAMILY SAVINGS - BURT

12.00.00am GMT Tue 7th Nov 2006

Speaking after an adjournment debate on the bankruptcy of Farepak, Liberal Democrat Small Business Spokesperson, Lorely Burt MP has attacked the companies involved and called on the Government to give customers better protection.

Commenting, Mrs Burt said:

"The British Retail Consortium should be ashamed of itself for initially agreeing to help Farepak customers, and then cruelly withdrawing this offer.

"Why did HBOS allow EHR, Farepak's parent, to raid the company's coffers when it should have known the company was insolvent?

"The receiver of EHR has recently sold assets worth £34m - will any of this reach Farepak customers?

"The customers of companies such as this should receive the same protection as the customers of other savings organisations.

"I welcome the announcement that the DTI is to investigate the circumstances of this collapse. I hope that the actions of HBOS and EHR's directors comes under the spotlight."

ENDS