Issue 35; 24 December 1999

Stephen Timms; Times Article

Following a front page story in today's Times (December 24) which revealed that Financial Secretary to the Treasury, Stephen Timms, is a shareholder in one of the large companies which will benefit from his Department's IR35 measure - at the cost to small business. The Professional Contractors Group issued the following statement.

David Ramsden, Director of the Professional Contractors Group, which represents the interests of small, independent IT and engineering contractors, said:

"At the last General Election, the majority of the membership of PCG voted for New Labour. They were attracted by the bright new vision for Britain portrayed by Tony Blair and fed up with the constant revelation of sleaze by Old Tory. This latest revelation indicates that New Labour are no better.

"We believe that IR35, which will damage if not destroy many small IT and engineering consultancies, has been lobbied for by big business, like Ovum.

"Faced with the Internet revolution these companies can see that tomorrow's competitor is the small knowledge based company leveraging their skills through the Internet. With high fixed costs the larger conventional consultancy run the risk of being blown away. After all, it is not if these higher costs bring a better result, look at fiascos with the Passport Agency and the new air traffic control for proof of this.

"These bigger companies are fighting back to prevent this. It is clear that a major factor in their armoury is their influence with this Government.

"These stories confirm this, and our members who put their trust in Tony Blair at the last election, will wonder is there any party in this country that can Govern for the interests of the majority rather than the narrow self serving interests of their 'cronies'.

"Is it any wonder that many of our members are taking their knowledge and boarding planes never to return?"

The Times article

Also on BBC news site, Radio 4 and teletext.

Happy Christmas and a good New Year.

Kind regards
Susie Hughes
Press Officer for the PCG

BACKGROUND INFORMATION
The Professional Contractors Group (PCG) was formed in May 1999 and is one of the fastest growing Representative Groups in the UK. Membership is invited from Contractors in the Knowledge based sector (mainly IT and Engineering).

Initially formed to Campaign on the issues raised by IR 35, the scope has now been broadened following an Internet ballot of members and the annual subscription of 100 pounds is used to fund a non-profit making organisation run by a Committee of unpaid volunteers drawn from the membership. They in turn are supported by an Executive team comprising of Legal, Accounting, PR, Lobbying, Internet and Office administration personnel who work within agreed, published, budgets.

These experts are drawn from outside existing Industry suppliers to ensure impartiality and a high degree of independent advice. This advice is imparted via the members file store and also through an on-line discussion forum. This also allows the rapid dissemination of information concerning issues affecting Contractors. Key issues are voted upon via an Internet ballot system of all members ensuring a high degree of accountability. As a result it is recommended that Contractors considering joining should have Internet access and they must have an email address.

Associate membership is also available to Clients, Agents, Accountants and representative bodies who would support the aims of the PCG. The subscription of 250 pounds allows access to the Filestore. No further advertising (including banner adverts) is allowed and the only differentiation is the date the Associate Member joined. The earlier the membership the nearest the top of the list. Members will shortly be able to review a list of the Associate Membership together with contact details and future development is planned to add services for the mutual benefit of both classes of Membership.

Associate Membership does not carry voting rights and the funds raised from Associate subscriptions will be used for the development of these mutual services and to establish a legal "fighting fund". It will not be used to fund the core organisation, to ensure that the PCG can be fully funded by Contractors only, guaranteeing complete independence.

You can join the PCG (use the online joining form) at https://www.pcgroup.org.uk/join.html. We can accept credit card payment on line via our secure server. (Open over the Christmas and New Year Holiday) This allows immediate access. Alternatively you can pay by Cheque, but this will not allow access until funds are cleared. We reserve the right to refuse membership for any reason and may carry out random checks of membership applications. Full terms and conditions are available on the site for review

This email newsletter is published free of charge by the PCG, please forward onto your colleagues.

Agents and Accountants that support the aims of the PCG please copy this email to your Contractors and your clients.