The results of a major survey undertaken by Lansdowne Market Research on behalf of Enterprise Ireland to measure the preparedness of Irish Business for the Y2K issue "indicate a worrying level of complacency and a false sense of optimism that all will be well" according to Minister Noel Treacy, T.D., Minister for Science, Technology and Commerce today (Wednesday 5th May, 1999).

"In particular the survey results show that tackling the millennium bug is not a major priority for most small manufacturing companies located outside Dublin. In addition, there is an unfounded belief that the computer industry will sort out the problem," said Minister Treacy.

The Minister said that there were very serious and real negative consequences for business, especially SMEs, if they do not act and prepare for Y2K. "Businesses could lose insurance cover due to non-compliance and potentially go to the wall in the face of non-insurable claims. Litigation is a very real threat arising from accidents and other incidents that emerge from non-compliance. Businesses could lose contracts and be de-listed as sub-suppliers. And there are obvious health and safety at work implications," the Minister warned. "Act now is the only responsible business response," he said.

Commenting on the results of the survey the Minister said, "while there is a high level of awareness of the Y2k issue, this awareness is not matched by equivalent efforts to reach suitable compliance levels." "Small companies particularly are vulnerable and many still have failed to take on board the serious nature of the problem and its capacity to undermine their competitive position," he said.

"To overcome these deficiencies at company level I am now announcing a new initiative whereby FÁS, in co-operation with Enterprise Ireland, will provide training grants to firms through its Training Support Scheme. This initiative means that funding subject to certain conditions, will be payable in respect of training courses on the Year 2000 issue.

"The result of this action will be to get the message directly to where it is most needed and explain the practical steps needed in addressing the solutions for small businesses. This will be very important for SMEs and I encourage them to avail of it without delay," said Minister Treacy.

"In addition to this training initiative I have agreed with Enterprise Ireland that the next phase of the campaign will be focused on the target audience now identified as requiring closer attention. This means targeting the smaller businesses outside Dublin. Radio and other media advertising will now concentrate on these companies. Enterprise Ireland and the County Enterprise Boards will redouble their efforts to spread the message to those who need it most," the Minister said.

The results of the survey of 300 Irish businesses completed this month suggest that

• The Millennium bug is not a top priority for Business While an encouraging 3 in 4 companies rate the Millennium bug as important, it is behind other issues which appear to be of more immediate concern such as competition, skills shortages, taxation and rate of change in computers. 4 in 10 companies believe it effects all sectors of industry, for others Finance, IT and Transport will be the main areas effected.
• Companies are not devoting a lot of time to the issue 2 in 3 companies claim to have been preparing for the Millennium Bug for over one year but most have not actually spent a lot of time on it to date and do not believe it will take up much of their time over the next 12 months. None the less, they remain very confident that they are ready. Complacency may be in evidence.
• Responsibility lies at both Director and managerial level. 8 in 10 companies claim to have appointed a single person responsible within their company. However, this person is as likely to be a manager as they are to be a director. In just over 1 in 10 companies, the Managing Director has assumed responsibility. Encouragingly, those responsible tend to be part of a team and most meet once a month or more often.
• Lack of face to face meetings with suppliers. 7 in 10 companies claim to have discussed the Millennium issue with their suppliers, while a third have yet to do so. However, for most this contact has gone no further than sending out a letter or questionnaire. Less than 1 in 3 of companies have actually met their suppliers face to face to discuss it. With this in mind, it is surprising that over 9 in 10 companies appear to be confident that their suppliers will be ready.
• Companies have adopted a reactive approach Less than 1 in 5 have a contingency plan to deal with issues either internally or with their suppliers if they arise. Typically companies just intend to deal with the issue when it arises or change their suppliers. 1 in 8 companies do not actually believe this will arrive.

Responding to the survey results, Minister Treacy again emphasised the requirement for companies to take responsibility and ownership for the year 2000 problem at the level of the individual enterprise. He stressed the need to utilise the initiatives available to small firms to assist them become compliant, for instance the various Year 2000 publications and the special helpline operated by Enterprise Ireland - phone: 1850 57 2000.

Mr Feargal O Mórain, Director, Enterprise Ireland said "In light of the survey results Enterprise Ireland will now refocus the Y2k campaign on the more vulnerable sectors as identified in today's survey. He also stressed the need to focus public and business attention on four key negative outcomes of failure to achieve Y2k compliance i.e. loss of insurance coverage, litigation, de-listing by larger suppliers and health and safety implications."