DTI's Taskforce 2000 urges firms to act now
Firms are being urged to commit to action on Year 2000 date-change issues by the Department of Trade & Industry’s Taskforce 2000.
The Taskforce, sponsored to the tune of #170,000 by the DTI, was set up under the direction of Ian Taylor MP, Minister for Science and Technology.
It aims to raise awareness among the business community, particularly chief executives and boards, about the problems firms will face if they miss the Year 2000 deadline.
“My role is to make people aware of the issues and make them commit to Millennium compliance,” said Robin Guenier, executive director of Taskforce 2000. “The main problem is that IT people and management people do not communicate. It’s essentially a management problem.”
Guenier said that 10 per cent of businesses could fail if firms do not take action, and the majority of firms have taken little action if any.
He believes that the time shortage is also significant: there are only 750 working days to the Year 2000 deadline.
Guenier said: “80 per cent of systems have a problem and 80 per cent of IT programmes are late. What the ripple effect will be on the rest of the economy, if this isn’t sorted out remains to be seen. Normally in a product shortage, prices go up.”
As part of its programme to raise awareness about Millennium compliance, the Taskforce is sending out letters to gas, water and electricity firms to find where they are in the process. It has also set up a conference in October to discuss the issues and help those firms look at solutions to the problem.
Ernst & Young’s senior partner Nick Land says that firms will have to reassess their strategy and put other projects on the back burner when dealing with both Year 2000 and the introduction of the Euro.
“There will be resource constraints and organisations will have to give up something so they can do Year 2000 work,” said Land. “When the single European currency arrives it will create major complications for the financial industry. Big companies are going to need in excess of #40m to address the problem. Average FT 250 companies will need #25m.”
The Taskforce, whose funds are likely to run out by the end of this year, is hoping to raise an additional #500,000 from private industry.