The government says that it has completed its preparation to ensure that vital services are not disrupted by the millennium bug.

The minister in charge of work on the Y2K problem said that the "monumental" task of making every essential government computer millennium complaint has been completed

In her final report before millennium eve, Margaret Beckett said that independent assessors had given all the systems a blue rating - the highest level of readiness.

"I am pleased to report that work is now complete business critical systems is now complete in all government departments and agencies," she told MPs.

"And that this means systems have been fixed, tested and successfully put back into operation."

However, Mrs Beckett, who is the Leader of the Commons, told MPs that there could be no absolute guarantees.

The government "can't afford to be complacent," she said.

All departments and agencies had emergency back-up plans to ensure a continuity of service in the event of computer crashes on 1 January.

Special millennium centres will be operating across the UK from 31 Decemebr to 7 January.

They will provide ministers, the public and media with up-to-the minute information online about any problems that occur she said.

Concern about small firms

Mrs Beckett denied that the last three years of work had been a big fuss over nothing.

"There is no doubt that in the majority of organisations that have done checks for the bug, problems have emerged that would have been very serious if they were not fixed.

"About 25% of the smallest companies are not as well prepared as we would like them to be.

"We still get feedback from some of them saying they do not intend to take any action on the bug.

"That is a consistent problem right across the world. Most large companies have checked their supply chains right the way back.

"There may be an accumulation of small-scale problems that have a relevant impact."

However, she added that overall she wished "to pay tribute to the vast numbers of people in the UK, across the public and private sectors, who have worked tirelessly. And whose efforts are almost with equal, internationally, to meet the goal we set of ensuring no material disruption in our country as a result of the millennium bug."

www.notmeguv

Tory trade and industry spokeswoman Angela Browning also thanked those who had worked to minimise damage that would be done by the bug.

But she said she detected "a slight hint of www.notmeguv in the honourable lady's voice just in case anything goes wrong."

Other commentators were even more critical.

Rob Wilson, assistant director of independent campaign group Taskforce 2000, said he remained sceptical about some aspects of the government's Y2K project.

"Most departments have done a pretty good job, but we still have concerns about the Inland Revenue and the Ministry of Defence.

"Our biggest worry in recent months has been the down-grading of some computer systems from business-critical to non-critical.

"We don't know why this has happened, and we cannot be sure what knock-on effects there will be.

"We are also sceptical about the wider public sector, but we shall just have to wait and see what happens."