PM ANNOUNCES GOVERNMENT INITIATIVE TO TACKLE YEAR 2000 PROBLEM

Prime Minister Jenny Shipley this evening announced a three-pronged Government initiative to encourage the New Zealand public sector and private businesses to respond to computer problems associated with the Year 2000.

Speaking to the Christchurch Chamber of Commerce this evening, Mrs Shipley said the initiative comprises establishing a Year 2000 (Y2K) Task Force, appointing Cabinet Minister Maurice Williamson as Associate Minister of State Services with particular responsibility for Information Technology, and adding requirements relating to Year 2000 compliance to performance agreements between public service chief executives and their Ministers.

Mrs Shipley said Mr Williamson?s appointment reflected his considerable knowledge and interest in the whole area of information technology and formalises a role he has been increasingly undertaking.

The Y2K Task Force - a Government Task Force on organisational systems challenges presented by the Year 2000 - follows a recommendation by the Government Administration Select Committee which called for the setting up of a task force to consider the problem.

The Y2K Task Force represents both public and private sectors. Its members are: Basil Logan (chair), Ralph Norris, Carol Stigley, Michael Hannah, Judith Speight, Ross Tanner. A secretariat to support the work of the Task Force will be located in the Department of the Prime Minister and Cabinet.

The Y2K Task Force will report by mid-August to a Ministerial Steering Group, chaired by Mr Williamson and comprising Finance Minister Bill Birch and Associate Treasurer Tuariki John Delamere.

The Y2K Task Force will make recommendations on:

options for the Government on how to address Year 2000 compliance in the wider public sector, including SOEs and other crown entities.
options for the Government on how to encourage Year 2000 compliance in the private sector;
the current state of readiness in New Zealand to address the risks posed by the Year 2000 problem;
the expected state of readiness in the year 2000, based on current information;
building on the current initiatives which are promoting understanding and awareness of the risks of the Year 2000 millennium problem in all sectors of the economy, and ways to build on these;
any other approaches that could be taken to manage the risks, given the amount of work that is already being undertaken across all sectors of the economy.
"A number of politicians have taken a particular interest in this issue, including United Party leader Peter Dunne, and I would expect that the Task Force will be taking their work into account," said Mrs Shipley.

The Year 2000 problem has arisen because many organisations have computer systems or other devices that were programmed using only two figures for the year (i.e. 98 for 1998). The issue arises when the clock ticks over to the year 2000. Then computers will not be able to distinguish between 1901 and 2001. This could have serious problems for the delivery of a number of public services, like water, sewerage and electricity. The Year 2000 issue is an international problem.

Mrs Shipley said as part of the Government's initiative, the performance agreements between public service chief executives and their Ministers would contain a specific requirement to provide an assurance that the information technology systems for which they were responsible would be Year 2000 compliant by the end of 1999.

"Because of our closeness to the International Dateline, information technology systems in New Zealand will be the first in the world to tick over to the new millennium. We have a responsibility to lead the way.

"I?m sure that this initiative will provide an example of competent management of an issue with considerable social and economic implications of critical importance to the international community," Mrs Shipley concluded.