PCG slams government over secret IR35 meeting with EDS

The Professional Contractors Group (PCG) has launched a scathing attack on the government after it held a secret meeting about its IR35 proposals at which IT services giant, EDS, was present.

PCG argues that EDS has a vested interest in seeing the proposals go through yet there was no representation for individual contractors in the meeting. In a letter to the government's paymaster general Dawn Primarolo, PCG director David Ramsden accuses the government of straying from the proper consultative process.

In his letter, Ramsden wrote: "There has been a lot of speculation that EDS was among those who originally lobbied for the IR35 proposals as it would strengthen the competitive advantage of companies like EDS. You will understand, therefore, why this is perceived by our members as proof that this is an absolute mockery of a 'consultative' process."

Ramsden told Silicon.com: "The government has a duty to talk to all interested people. The PCG is the only group that is looking after the contractors interests - EDS has its own separate agenda - I have no problem with the government talking to EDS but they have to talk to us as well."

The government has previously been criticised for introducing the legislation through the backdoor - without giving industry a proper consultation period. But after months of lobbying, the Inland Revenue and Treasury have reportedly drawn up a revised set of proposals.

The PCG argues that being excluded from discussions at such a crucial stage contradicts the government's claim that it is seeking to make the system more fair.

Both HM Treasury and EDS declined to comment.