Sir: I can assure your correspondent R. M. Gaze (letter, 28 May) about the impact of the Inland Revenue's contract with EDS on confidentiality. Contrary to what was said in your article ('US firm takes over tax records', 23 May), the day-to-day control of people's personal tax records is not being privatised.

The Inland Revenue's contract with EDS is about technology - running our existing computer systems and progressing to new ones over time. It has no effect on the day-to-day handling of people's personal tax returns and business accounts, which will continue to be done by Inland Revenue staff.

And there is no question of staff being held back to deal with public figures.

Confidentiality continues to be paramount in the Inland Revenue. I can assure Dr Gaze that we take it every bit as seriously for the man in the street as we do for public figures.

Yours sincerely,

THERESA MIDDLETON

Press Secretary

Inland Revenue

London, WC2