Firms race against time with bug

By EUGENE BINGHAM

WELLINGTON - The inevitability of the stroke of midnight does not appear to be enough of an incentive for businesses to rid themselves of the millennium bug.

Figures from the Y2K Readiness Commission show that companies struggling to prepare for any computer malfunctions blame a lack of time.

The final survey of businesses before New Year's Eve found that only 38 per cent have completed preparations.

Another 49 per cent said they would be ready by the end of the year, leading the commission to congratulate New Zealanders on their progress.

Of companies not ready, a rising number had pushed back the completion date.

In its August survey, the commission found companies experiencing "slippage" blamed the late delivery of upgrades to software and equipment.

This survey, in October, found equipment was no longer the problem.

"The most frequently stated reason for slippage are to do with priorities, procrastination and lack of time to do the work," says the survey report, released yesterday.

Commission chairman Basil Logan said firms and the suppliers of key services had indicated that remaining work was minor.

But he warned against complacency and urged people to set up contingency plans.

"Organisations need to step back and say, 'Now we've done all we think is necessary, but what if we haven't?'"

Two key areas, electricity supply and hospitals, appeared to be on track to be ready, he said.

Large hospitals in Auckland and Wellington said yesterday that their plans were well advanced.

Auckland Healthcare spokesman Michael De Courcey said 14,000 items of biomedical equipment had been tested and passed, as well as information systems.

Alan Dougall, of South Auckland Health, said its systems had been checked and contingencies were in place.

"We have in place things like generators for Middlemore Hospital and we will be activating the disaster control centre," he said.

In the electricity industry, Transpower has spent $8.2 million firming up its system and says it will have all key staff on standby. Seven helicopters will also be ready to fly to any remote troublespots.

Mercury Energy, Vector, Contact and TransAlta say they have rigorously tested their systems.

But, like most organisations, they are unable to give a cast-iron guarantee.

Mr Logan agreed that it would be impossible to swear there was not going to be any fallout when the clock strikes 12.

"Because of the nature, the uniqueness, of this particular problem, no one is prepared to give any guarantee."

A report out today from the State Services Commission on progress among Government organisations is expected to note encouraging results from "high-impact agencies" such as hospitals.