Audit Committee convener Andrew Welsh said:

"Whilst the committee was reassured by the Scottish Executive’s assertion that it is very confident that there will be no major failure of essential or emergency services in Scotland over the millennium period, we were alarmed to discover such a high proportion of firms in the supply chain to larger organisations may still not have taken precautionary measures.

"Back in August of this year, a survey revealed that more than one third of businesses with 10 to 249 employees in Scotland had an identifiable risk but were not taking the full range of steps to address Year 2000 issues. In addition, only 43 percent of businesses in this category had business continuity plans completed, underway or intended.

"Although progress has since been made, the follow up survey on November 30, 1999, showed that around one quarter of businesses in Scotland are still at risk.

"Whilst we recognise that the Scottish Executive has no powers to compel private firms to take precautionary measures, we are concerned that no attempt has been made to quantify the effects that such a failure could have on investment or on jobs in Scotland.

"Overall, our report recommends that the Scottish Executive:

• continues its work to ensure that the business continuity plans and millennium operating regimes are kept up to date and refined in the run up to the millennium and for the subsequent critical dates (for example, 29 February 2000, which is a leap day under the Gregorian calendar);

• closely monitors any evidence of failures after the millennium, particularly on small to medium size businesses, and the impact on the Scottish economy;

• build on the positive outcomes of this project, in terms of producing a comprehensive stock-take of IT systems, partnerships between the public and private sectors, and updating and testing national and local contingency arrangements."
•  

BACKGROUND NOTES

The Audit Committee’s full report The Millennium Threat: Is Scotland Ready? is avaialble on the Parliament’s website or can be purchased from outlets of the Stationery Office.

The Audit Committee’s membership is as follows:

Convener: Andrew Welsh (SNP). Brian Adam (SNP), Scott Barrie (Lab), Cathie Craigie (Lab), Annabel Goldie (Con), Margaret Jamieson (Lab), Nick Johnston (Con), Lewis Macdonald (Lab), Paul Martin (Lab), Euan Robson (LD), Andrew Wilson (SNP).

Eric MacLeod: 0131 348 5605
email: eric.macleod@scottish.parliament.uk