87. The century date change problem could, left uncorrected, cause a broad spectrum of automated systems to operate inaccurately or unpredictably. Although each failure in isolation is unlikely to have a significant impact the consequences of widespread and simultaneous failures could extend beyond technological fields to affect the overall performance of the economy and society at large. Substantial progress has already been made in correcting systems and to prepare to manage the consequences of failures but much remains to be done.

88. It is clear that many organisations responsible for the provision of essential public services have recognised the century date change problem and its wider implications and have undertaken programmes designed to minimise its impact. Although it is impossible to guarantee performance without degradation or interruption, we are reasonably content that widespread failures in key parts of the national infrastructure will be averted if current Year 2000 programmes for compliance are continued through to completion on time. However, we emphasise the need for integrated contingency planning.

89. Most large corporations have extensive Year 2000 projects underway but we still have concerns about the level of progress in some parts of the private sector, particularly in SMEs. These must be addressed.

90. The Government's acceptance of the importance and urgency of stimulating and enabling organisations in the private sector to take effective precautionary measures to prepare for the century date change has been matched by the commitment of substantial sums of public money.

91. Progress in the public sector is significantly behind the leaders in the private sector. Many public sector organisations, including some parts of central Government, are already projecting completion dates for readiness projects which are uncomfortably close to the millennium itself and which expose them to the risk of failures in systems before the century date change. Further slippage in timetables cannot be countenanced.

92. There is an overwhelming need for a high-profile campaign designed to educate organisations and the public on the implications of the century date change and to equip them to take effective remedial action. This would serve both to turn existing high levels of awareness into action and to counteract alarmist reporting.

93. There are two key elements to solving the Year 2000 problem. The first is information: information on best practice, on whether products are compliant or not and on the levels of progress that have already been made in specific organisations, in particular sectors and across the nation. Open reporting is essential and the Government, indeed the public sector as a whole, should be leading by example. Central co-ordination and wide dissemination of such information is essential if widespread duplication of effort is to be avoided. The second is prioritisation. Efforts to achieve millennium readiness must focus on critical systems. Each organisation needs to make strategic decisions over which systems are crucial to its survival. Similarly Government needs to ensure that systems on which the public rely for essential services, whether provided in the public or private sector, receive priority.

94. There is potential for problems as a result of systems failures caused by the century date change but, provided concerted and well co-ordinated action is taken to build on the progress already made, we believe that the UK can achieve an acceptable level of millennium readiness and celebrate the millennium without concerns about widespread disruption.