Computer firm advised by Taylor

ONE of the firms which employed Lord Taylor as an adviser was Electronic Data Systems.

EDS, one of the world's largest computer software companies, has major contracts with the Department for Work and Pensions, the Ministry of Defence and other Whitehall departments.

The firm is in talks with the Ministry of Justice - whose most senior minister is Jack Straw - over the soaring costs of its contract to computerise prisoner records.

The £234 million EDS contract has ballooned in estimated cost to £690 million and its scope has been cut.

The firm is one of five computer companies that have signed framework contracts for the Government's £2 billion ID cards scheme.

EDS came under fire over its handling of the Child Support Agency's contract, but the DWP decided to stick with the deal despite widespread criticism.

It was also heavily criticised for its handling of the Inland Revenue's tax credits system which ended up with over-payments to families that had to be recovered.

The company also has strong defence links and landed a £2.5 billion contract with the MoD in March 2005.

EDS was taken over last year by Hewlett Packard, a move that unions feared would lead to the loss of 3,378 posts.

Lord Taylor's EDS link appeared in the Lords' Register of Interests until last year, when it appeared he had ceased to be an adviser.