A warning that the millennium bug could spark a civil emergency requiring military intervention has come from Scottish Secretary Donald Dewar.

The claim comes in a leaked letter which reveals a row between Mr Dewar and Defence Secretary George Robertson over cuts to the Territorial Army north of the border.

The Scottish secretary declares: "This could well lay the government open to criticism over a reduction in emergency preparedness at a time when the millennium bug problems pose a potential threat to key services such as electricity and telecommunications."

Trade Secretary Peter Mandelson was immediately under pressure to confirm whether the ministers' fears of a civil emergency caused by the bug were correct.

Shadow spokesman John Redwood tabled a series of Commons questions demanding a reassurance that all public services will work on 1 January 2000 and what further action was now planned to meet Mr Dewar's fears.

In control

"The government must provide answers to these key questions that potentially affect the livelihood and security of everyone in Britain.

Alex Salmond (right) says Donald Dewar has brought up a "hugely important" issue

"Labour have previously assured us that they were in control of the millennium bug problem. Fears are now growing that this is no longer the case."

Alex Salmond, leader of the Scottish National Party which obtained the letter, said: "We have had nothing from the government to indicate that the TA was needed to be in place to meet these problems.

"Unless the TA cuts are reversed it is going to be very difficult for the government to respond. It is a hugely important issue."

He also demanded an immediate statement from Mr Mandelson, claiming: "There does seem to be open warfare in the cabinet on this issue."

But Deputy Scottish Secretary Helen Liddell said Mr Dewar's references to the millennium bug were simply intended to point out a "what if? scenario" to outline the importance of the TA.

She also dismissed claims that the row between Mr Dewar and Mr Robertson was out of hand.

Serious rift

And she accused the SNP of trying to "court martial the secretary of state for Scotland for fighting Scotland's corner in the cabinet".

But it was clear there is a serious rift in the cabinet over plans to dramatically cut back TA numbers.

The letter, which dates from last August, was sent from Mr Dewar to Mr Robertson. It stated: "The detailed proposals lead me to conclude that TA ability to respond and support local communities in the event of a major civil incident will be severely affected and indeed will all but disappear north of Inverness."