The BBC's Andrew Cassell: "Checks will cost the health service in Scotland more than £50m"

The House of Commons Public Accounts Committee said 17% of NHS bodies in Scotland are not confident that all critical systems and equipment will be millennium-proof by the initial deadline of 31 March 1999.

It urged NHS managers to speed up remedial work and ensure contingency plans are in place and tested well before December 31 next year.

Committee chairman David Davis said the situation was "unacceptable".

David Davis warned urgent action was needed

He said: "Failure to get a grip of this now will put patients' lives at risk.

"These bodies must urgently draw up effective contingency plans in case the worst does happen."

The NHS Management Executive estimates that millennium compliance will cost the NHS in Scotland £56m but has told the Committee that patient care will not suffer as a result.

Scotland Correspondent Colin Blane: NHS says no lives will be put at risk

The Scottish Office conceded there may be some minor disruption caused by the millennium bug but insisted there would be no threat to patient safety.

Business as usual

A Scottish Office spokesman said: "This is an important issue being taken seriously at all levels of government and the NHS in Scotland.

"The NHS in Scotland has been actively working on this since 1996.

"Health boards and trusts are all running their own programmes. Over 70% of trusts and boards will have their critical systems compliant or alternatives in place by 31 December, 12 months before the date change."

He added that 90% will achieve that by the end of March, still nine months before the date change.

"We are continuing to rectify equipment wherever possible. The emphasis is equally on putting in place contingency plans."

The Scottish Office says that patients are not at risk

He added: "We are operating on the assumption that it will be business as usual.

"There is the possibility of some disruption, which should be confined to inconvenience and not a serious risk to safety of patients.

"Our confident expectation is that we will have nearly normal business on the night.

"We certainly do not anticipate chaos or disasters and have every confidence that as always the NHS will cope successfully."

Cost benefits

The Public Accounts Committee also criticised the £4m to £5m paid out in clinical negligence claims by the NHS in Scotland in addition to the £29m set aside for contingencies and claims in the pipeline.

In the last three years £12.7m had been paid out in 514 negligence cases in Scotland.

But the committee said the payments divert funds from patient care and must be reduced.

The committee also raised concerns over £10.77m paid out during 1996-97 in Scotland in enhanced pension payments for early retirements.

It urged the management executive to ensure the cost benefits of early retirements are sound.