I am very happy to be invited here this morning, to give the opening address, for this very important seminar on 'Ensuring your Business is ready to manage the Millennium Bug risk'. This is a very opportune and critical time for all firms in the Construction Industry to discuss the implications of this very serious issue. I see from your Brochure that we are very privileged to have with us to-day a panel of expert speakers on various aspects of this Year 2000 problem as well as a workshop in the afternoon providing further information on this topic.

In May of last year, I officially launched on behalf of our Government, the Year 2000 National Business Awareness Campaign and specifically targeted the small business sector right across the country. This brought together the expertise of a wide range of representatives in the private sector as well as some public sector representatives to form a National Campaign Committee. With the help of this National Committee, seven regional conferences were organised by us throughout the country. I personally addressed each conference to highlight this very serious problem. Last September at a Conference here in Dublin, the Taoiseach, Mr Bertie Ahern TD addressed a very large gathering of people from both industry and public service bodies on this extremely important issue.

A survey conducted by the Irish Computer Society last year concluded that almost nine out of ten businesses are aware of the Year 2000 problem, or the Millennium Bug, and that many of them are familiar with at least some of its potential implications. As a result of the Awareness Campaign a significant number of enterprises have responded positively to the many issues that need to be resolved. The recent follow-up Irish Computer Society survey on Year 2000 compliance confirmed the high level of awareness of the problem. In addition, it shows an increase of five per cent in the number of businesses who have a compliance programme under way. Smaller companies are, in fact, particularly vulnerable in my opinion, as many of them have failed to take on board the very serious nature of the Year 2000 problems ahead.

Unfortunately, however, large numbers are still ignoring this problem, or for some reason have been unable to respond as they should. Ignoring the Year 2000 problem is simply not an option as failure to address it adequately could have very serious implications for the ability of many companies to continue to operate effectively, or survive at all.

At the national level, we need to recognise that we may well face a significant number of business failures and economic disruption as a result of communications and computational errors if we do not act decisively and immediately to avoid them. While many business people still view the Year 2000 problem as a technical issue to be resolved solely by specialists, its "downside" is such that it cannot be left to the expediencies of a technical elite, even where such an option is financially viable for a small company.

Taking responsibility for the Year 2000 problem at the level of the individual enterprise is the first step in developing an effective response strategy. Companies need to ensure not only that their own systems are free of latent problems but equally as important that their suppliers and customers are not going to cause them unexpected problems. To do this each individual company needs to evaluate their supply chain and ensure that it is compliant in all critical areas. The supply chain issue is of major significance in the construction industry where there is usually a significant linkage of clients, contractors and sub-contractors. Every company, large and small, across all business sectors must examine their own vulnerability and prepare an action plan for implementation without any further delay.

It is the embedded chip issue that may ultimately prove most costly to contain and correct, especially in the context of the building industry. Embedded chips are used in many everyday household, retail, commercial and industrial activities. Their unobtrusive functioning in equipment such as lifts, mobile phones, fax machines, security systems, environmental control systems and indeed most other systems, may well create a false sense of security with regard to the possible scale of the compliance procedures necessary to overcome this desperate problem.

As far as this Government is concerned, our involvement in this Problem is twofold. Firstly, as I mentioned, we have been organising a National Campaign to make business fully aware of this complex problem and secondly, we have a responsibility to put the Government's own house in order so that the huge range of public services, both to businesses and the consumer, provided by the State and its many agencies, will be unaffected into the new Millennium.

On behalf of the Government, I officially launched the Enterprise Ireland National Year 2000 Information Service towards the end of last year. This is specifically geared to the needs of both small and medium sized companies. The new information service is based on a helpline number 1 850 57 2000. Callers will be provided with a guide to Y2K compliance and a Directory of Y2K Consultants & Service Providers. The new service will provide a series of training workshops both to companies and to intermediaries such as the County and City Enterprise Boards and many others. These workshops will be based on the checklist approach.

The new Information Service will also operate a dedicated website providing updated versions of its information pack and various other relevant material. The Y2K website will provide links to other suitable sites of direct benefit to SME's.

It is proposed to gather a number of case studies of how Irish companies are successfully preparing for Y2K and distribute information on them on the website and in the information pack. These models would act as real world illustrations of how the Year 2000 problem is tackled in the different sectors.

I am also very happy to say that the County and City Enterprise Boards will play a major part in this national campaign. I have asked them to get involved as they represent a unique single point of contact for small businesses nation-wide. Small and medium sized companies, especially the very small ones, may not be sufficiently aware of the extent of the potential difficulties and adverse affects which the Year 2000 computer problem poses to their businesses and the CCEB's are ideally placed to get them involved immediately. It is important during 1999 to have more detailed information on the scale of the problem facing us. Officials of our Department of Enterprise, Trade and Employment have been talking recently to representatives of the industrial development agencies and various industry bodies with a view to quantifying, over the coming months, in so far as possible, the levels of compliance of the companies on their client base.

Enterprise Ireland, I am glad to say, are already working on a comprehensive national survey on both the levels of compliance and activities of Irish companies. This survey will be repeated every quarter for the remainder of this year to assess the changing levels of compliance and to direct actions to stimulate compliance.

As regards Central Government, an Interdepartmental Year 2000 Monitoring Committee was established in late 1997 by the Government to oversee the achievement of Year 2000 compliance. The Monitoring Committee reports every two months to Government. Last year's budget allocated a sum of £40 million towards the Year 2000 computer problem, particularly in the Health Sector.

On foot of recommendations from the Committee, the Government decided that the Year 2000 issue be treated with top priority by senior management in all Department/Offices. The potential for Government liability in the event of problems arising from Year 2000 failures is being thoroughly investigated. Measures have been implemented to retain key skilled IT staff on year 2000 remedial work and all important projects will be completed by the 31 July this year, at the latest. All Departments/Offices have to develop plans to deal with supply chain issues, business continuity planning, and cover arrangements for the millennium changeover period.

Finally, the Government decided that each Department/Office, its associated agencies, and public bodies operating under its aegis, should shortly commence publishing information on their Internet Web sites on the status of their Year 2000 Compliance Programmes and the actions which they are taking to resolve this very worrying problem.

I would like you to consider all of these issues in a wider framework. As you all know, the national economy, and in particular, the construction industry, is performing remarkably well at present. This country needs this progress to be maintained without interruption. We are now in the healthy position of steadily reducing unemployment currently at 6.8%; of creating very significant numbers of new jobs annually and of having the Government finances in a very healthy state.

This healthy position must be maintained. We live in a fast changing business environment with global challenges ever-present. We should not be lulled into any false sense of security on the issue of maintaining our competitiveness. Our businesses must maintain their flexibility and capacity to do business and seek out new opportunities at all times. It would be a serious setback if the Year 2000 issues which we are discussing to-day were to put any brake on progress or hinder our business community from achieving their full potential in generating economic growth and creating sustainable employment. With capital and investment so mobile we can never rest from the imperative of ensuring that we retain our competitiveness as a nation, which has been such a crucial factor in our economic well-being.

I would like to congratulate the Construction Industry Federation on your initiative in organising this seminar and workshop on the Year 2000 issue and for your success in securing such an influential list of speakers. I wish you well in your deliberations today.