Many agencies have expressed a view that REC and ATSCo have not done enough for them, given the consultation deadline.

they go on to report...

ATSCo represents the interests of only the largest IT recruitment agencies while REC has represented the interests of agencies in all industries. It is clear from the draft regulations that THE INTERESTS OF MOST CONTRACTING AGENCIES HAVE NOT BEEN PROPERLY CONSIDERED. There are technical, legal and practical problems arising from the current draft that will change the day to day operations of all contracting businesses. A list of these concerns appears below.

As industry specialists we have been asked by most of those attending to make representations to the REC and the DTI. It was felt that the most pressure would be provided by a joint and unanimous approach linked to
1. detailed legal argument and
2. knowledge of how the contracting industry operates, particularly when dealing with ltd co contractors.

There are difficulties that must be addressed and the view was that A DETERMINED APPROACH MUST BE MADE NOW BEFORE IT IS TOO LATE. The more companies we can add to our list for this purpose the better. We intend to act for any agency who wishes us to represent it to the DTI and the REC. WE ARE OFFERING A SERVICE FOR £200 + VAT which will act as an initial fighting fund.

The fact that many agencies have signed up for this service is a damning indictment on the approach taken by ATSCo and REC. Especially as Tim Nicholson has warned in an article contained in Recruitment Matters that The Government drew considerable comfort from its perception of a fragmented industry with no cohesive view

A letter to the Interviewer (Agency magazine) from Steve Gibson MD of Workstation states:
The REC believes that it got the best possible result for its members under the circumstances, and it may be right. However it did so without a mandate from its members and it is now rigging the approval process. Meanwhile the DTI is using its endorsement by "the industry's principal trade association" to counter any protest.

Divide and conquer!

And Nicky Ashford of Dagmar Tara writes
REC legal chief Belinda Brooke continues to say that the new quarantine periods are more than REC was asking for. Maybe they are more than REC was asking for, but I have yet to meet a REC member who is anything, but furious that REC has capitulated without a fight

The use by the Government of cut and paste quotes to justify their actions to a wider audience and attempt to split the lobbying group, is a tactic well known to the PCG. Whilst PCG never made the error of allowing the Government to cut and paste a public welcoming message the Government trawled through private statements from PCG members to find the words "PCG, Welcome and Changes" in the same sentence and has repeatedly and cynically stated that the PCG has welcomed the changes made to IR35. (The last time by Revenue QC Plender in the High Court) It is a crude attempt to cut off support for the group and to attempt to fragment the lobbying effort.

It has failed and the PCG has managed to fend off attempts to split the lobbying effort. A prime factor in this success has been the open nature of communication and the resultant "ownership" by the members of decisions.

Representing members and trying to influence the regulatory enviroment for the benefit of members is the core business of the PCG and as such, resources are targeted at achieving critical mass in terms of membership numbers, such that we will be in at the planning stages of any future IR35 and ensure it never sees the light of consultation.

To my mind the cynical use by the Government of "cut and paste" quotes, often completely out of context ensures that their stated aim of "Consultation" will never be achieved. What trade association will risk losing the support of their members (as is happening to REC) if they continue in this manner? It guarantees that a confrontational stance can be the only option. It is an arrogant abuse of power and further confirmation that if you have to wait until the official "consultation" phase to influence Government you have already lost. Hence the massive growth in membership of task forces and the increasing calls that this Government is run, for and on behalf, of their cronies.

It is also a message to contractors to get online, get their credit cards out and add to the 80 new members a day that are joining the PCG at this time.

www.pcgroup.org.uk

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Andy White