Don Cruickshank, Action 2000 outlines practical steps small businesses should take to avoid problems (Dur:2'53")

A UK Government initiative called the Millennium Bug Campaign has begun to prevent computer systems crashing at the turn of the century.

The new campaign includes a telephone hotline and an Internet site providing information on the millennium problem.

The problem has arisen because many microchips represent dates by just two digits, for example, 98 instead of 1998.

Microchips are at the root of the problem

At its simplest, it means that the year 2000 could be confused with the year 1900 and computers may crash as a result.

The campaign is mainly aimed at helping small and medium-sized businesses, which have been slow to tackle the problem.

But other concerns include almost anything that contains a microchip. Video recorders, washing machines and even cars could be at risk.

The AA's millennium project manager, Cliff Morton, said although there is little chance of any danger, it is important to be absolutely sure.

"We do know that air-bag controls use a microchip that uses date and time functions," he said.

"We're not saying there is a problem, but from a car manufacturer's point of view they need to make sure they don't go off accidentally and conversely do go off when they should."

The campaign will draw up contingency plans in the event of air traffic control failing

The campaign is also working on contingency plans in case of failures in essential services such as telephone networks and air traffic control.

Don Cruickshank, from the Millennium Bug Campaign, said government had to assume the worst.

"The main concern is actually about the air traffic control systems not having a power supply, staff not getting to work and telecom systems not working," he said.

"The air traffic control system particularly will be central to the contingency planning the government has to deliver over the next 18 months."

Fact or fiction?

The gloomiest predictions of the extent of the year 2000 problem come from the larger organisations such as BT, Marks & Spencer, Nationwide, Royal Bank of Scotland, Tesco and Shell.

While they say they expect to eliminate most significant internal failure, they admit that they will not have all the systems fixed in time.

The government's estimate of £370m for internal departments is thought to be too low

Many of the larger companies have been working on the problem since 1994, but surveys from late last year show that fewer than half the UK's top 9,000 companies are taking significant steps to resolve the problem.

It is also generally assumed that some failures in the public sector are now inevitable, with the health service looking the most vulnerable.

Trust hospitals, of which there are 520, are estimating a requirement of £3-4m each. But most have no budget for such an eventuality.

The estimate of £370m to resolve central government problems is also widely regarded as significantly inadequate.

The Ministry of Defence have estimated that their department alone will exceed the government's total figure.

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