Firms have been warned they must take action in 1998 to change their computers and electronic systems to cope with the Millennium date change "timebomb" or risk going out of business.

Adair Turner, director general of the Confederation of British Industry said that steps must be taken as soon as possible to avoid the technological timebomb.

"While there are 732 days still to go to the Millennium, the final year should be used for preparation and testing. Firms must use next year to ensure they are compliant," he said.

The CBI says the date change will affect every company in the country yet many seem reluctant to take action.

Adair Turner: Companies must act now

"This must change. If firms want not only to retain their business partnerships but to stay in business they must act and act fast," said Mr Turner.

Some computer systems will fail or make errors unless they have been reprogrammed to avoid computers mistakenly registering the year 2000 as 1900 instead.

"The problem is simple to describe and so in principle is the solution, but failure to implement it will cause major problems for British business," said Mr Turner.

Companies will often have to act in tandem with suppliers, the CBI has advised.

The confederation has sent an information pack on the date change to 40,000 firms.
 

Back to top | BBC News Home | BBC Homepage	©