Firms have been warned they must prepare 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 (CBI) says steps must be taken as soon as possible to avoid a technological "meltdown".

There are less than 700 days still to go to the millennium, and "the final year should be used for preparation and testing. Firms must use next year to ensure they are compliant," he says.

The CBI says many British companies 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," says 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.

"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," says Mr Turner.

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

Back to top | BBC News Home | BBC Homepage	©