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Mr. Ian Taylor (Esher and Walton): The Chancellor was unnecessarily touchy about the genuinely important questions that my hon. Friend the Member for Chesham and Amersham (Mrs. Gillan) asked. He is also slightly ill informed. I am sure that his officials did not mean to ill inform him, but the previous Government did much on this issue, often with considerable criticism from people who thought that it was all hype.

I am delighted that the figures that he has come up with--which the previous Government started in order to meet the October deadline--show that the costs and the problem are serious. Will he confirm what I think he has just said to the hon. Member for Gordon (Mr. Bruce), the Liberal Democrat spokesman: the £370 million figure is only for central Government services, and the likely cost for the public services will be well over £1 billion? I think that he said at least £1 billion. In my judgment, it will be well over £1 billion because of the extensive problems of the Ministry of Defence, the Department of Social Security and the national health service.

Will the Minister say what he implied in his statement about prioritisation? Does that mean that some public service functions may not be able to continue? Will he answer the important point of what the cut-off date will be for testing, because half the cost is likely to be in the testing, not in the analysis, of the problem? Will he lay down to private sector companies a date beyond which

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the public sector will not deal with them electronically--unless they have computer compliance that is acceptable to the Government?

Dr. Clark: The short answer to the hon. Gentleman's first question is yes. I am talking only about central Government Departments, and the estimate for them is £370 million.

No one has an accurate estimate of the ballpark figure for public services. I do not demur greatly from the figure proffered by the hon. Member for Gordon (Mr. Bruce) of about £1 billion.

As to our contracts with electronic and IT companies, we now have an agreement that all contracts must be for millennium-compliant machines and equipment. I have today asked the various Departments to do random tests on the equipment that they receive to ensure that those terms are adhered to.

Mr. Brian White (Milton Keynes, North-East): The Minister's statement will be greatly welcomed. Until 1 May, I was working in information technology and, had the good people of Milton Keynes not elected me, I would be working on the millennium problem. One of my concerns is that the debate is mostly about computers, not embedded software. Most people seem to ignore that. Will the Minister assure me that that will be given greater priority in the publicity he issues, and that the testing programmes, which are always the things to be cut in every computer system development programme, will not be cut in this case?

Dr. Clark: My hon. Friend is right to remind us that we are talking about not only IT systems, but the embedded chip issue, although we are not sure of the extent of that problem. It involves not only mainstream and personal computers but things involving dates, such as lifts. Many digital watches may also be affected. Some Departments may not have taken it completely on board, so I have written to all Departments to ensure that they are aware of it.

I heard what my hon. Friend said about testing. Those were very wise words. We shall try to adhere to that because, to ensure that our programme works on the critical day, testing must be done in the lead-up to that period.

Mr. David Atkinson (Bournemouth, East): It is nearly two years to the week since I was the first to raise this issue on the Floor of the House, and was widely ridiculed for doing so.

I warmly welcome this overdue statement, but will the right hon. Gentleman confirm that it will not be enough to ensure that the computer systems for which the Government are responsible are millennium compliant because, if those with which they are linked in the private sector are not, they will all crash together? Will he therefore acknowledge the value of my private Member's Bill, the Companies (Millennium Computer Compliance) Bill, which is listed for its Second Reading tomorrow and which will do a great deal to ensure that this country will avoid much of the chaos that is predicted for two years' time?

Dr. Clark: I acknowledge the hon. Gentleman's interest and expertise in this subject. For obvious reasons,

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I was aware of his Adjournment debate. Over the years, he has taken a sustained and real interest in this subject. His foresight at that time has been appreciated.

The House will decide on the hon. Gentleman's Bill, but he is absolutely right to say that it is no use us being compliant at the centre if other organisations--both public and private--with which we interface are not compliant. For that reason, we have asked Don Cruickshank to take this forward and to ensure that there are arrangements and co-ordination between the public and private sectors.

Fiona Mactaggart (Slough): I thank my right hon. Friend for the openness that was involved in the publication of the reports about how Departments will proceed. It will make discussions of this kind much more fruitful.

Is my right hon. Friend aware of the depth of the concern that is felt in the business community? First, there is concern about the continued sale of non-compliant equipment. I know that my right hon. Friend is not responsible for that, but I noticed that my hon. Friend the Minister for Small Firms, Trade and Industry was present earlier, and I hoped that my right hon. Friend would have conversations with the DTI.

Secondly, there is what could be described as a mirror image of the issue that has just been discussed. Private companies that have made progress with compliance are concerned about their relationship with Government, and feel that Government are progressing more slowly than some of them.

I spoke at a meeting of the southern region of the Confederation of British Industry, at which both those issues were raised. CBI representatives said in terms that they did not want petty bickering between parties; they wanted collaboration, seriousness and progress. That was stated at the meeting by the right hon. Member for Wokingham (Mr. Redwood).

Dr. Clark: My hon. Friend is right to draw attention to the fact that the Government are prepared to make the information available, not only to Members of Parliament but to anyone who cares to use the internet to find the detailed information supplied by the Department. That process will be on-going.

I take on board the message that my hon. Friend has passed on from the regional CBI that business does not want the issue to be bogged down in inter-party bickering. I am reassured by the fact that Opposition Back Benchers did not follow the lead of their Front-Bench spokesman, and have realised the seriousness of the issue. Along with my right hon. and hon. Friends, I shall try to ensure that they have as much information as possible, so that they can help us to make the balanced judgments that will need to be made.

Mr. Ian Bruce (South Dorset): May I follow what was said by the hon. Member for Slough (Fiona Mactaggart)? I believe that answers are needed to the list of questions that the Minister was given by my hon. Friend the Member for Chesham and Amersham (Mrs. Gillan). I should be grateful if he would answer those questions and publish his answers, because all the issues are relevant.

Will the Minister assure the House that the all-party European informatics market group--of which I am vice-chairman--has been considering the subject for some

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time? There have been a number of draft reports, and the group is now about to produce its final report. I hope that the Minister will meet officers and experts from industry so that we can discuss our findings.

The Minister may be interested to know that, in an early draft of the report, it was suggested that we could not have both the year 2000 and economic and monetary union. Clearly, having discovered that, the Chancellor decided to postpone EMU. We recommend that all new Bills should be considered in terms of their implications not just for manpower and cost but for information technology. The right hon. Gentleman has said that Departments' current budgets are sufficient to provide the £370 million that is needed. I do not agree with that, but, if we assume that it is correct, the cost of staff will rise enormously because of demand and the fact that their salaries will be increased.

Experts say that the problem will have to be cured by the end of 1998, because the year 99, put into certain codes, means something completely different from the year 1999. That is not just a millennium problem; it is also a year 99 problem.

Dr. Clark: Having participated in debates on the issue with the hon. Gentleman, I know that he takes a considerable interest in it, and knows a good deal about it. I think that, when he has time to read the detailed reports that are in the Library, he will see that Departments are aware of the problems. The various departmental budgets cover 97 per cent. of the £370 million that I mentioned earlier.

As the hon. Gentleman will know, the obsolescence factor in IT is very great, and there is a very short period for the upgrading and refurbishment of equipment and of IT generally. As we advance with the refurbishment, all the equipment involved is 2000-compliant. The problem is not quite as great as it might at first appear, but I listened to what the hon. Gentleman said, and I shall write to him if there is anything that I feel I have not covered.


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