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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion

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To: Mad Monk who wrote (6128)9/10/1997 8:18:00 PM
From: Risky Business   of 13949
 
I JUST LOVE ARTICLES LIKE THIS!:State halts new projects as report warns of millennium meltdown

By Liam White

The Governor of New York State has banned all non-essential IT projects to minimise the disruption caused by the year 2000
bomb.

The decision comes in the wake of a detailed report which forecasts the millennium will throw the city into chaos, with power
supplies, schools, hospitals, transport and the finance sector likely to suffer severe disruption. The city's trouble is compounded
by the recent departure of the head of its year 2000 project to a job in the private sector.

Governor George Pataki declared "a moratorium on all new technology initiatives which impact an agency's ability to achieve
date compliance". The decree covers all functions carried out by the State, which include health, police, social services,
education, transport, employment and taxation. Both city and State governments must find hundreds of millions of dollars to
tackle the millennium bug.

In a presentation to the New York Year 2000 User Group in July, a State official said it was only 5% of the way through its
millennium projects, which it expected to cost between $100m (œ63m) and $185m.

The City of New York is spending $200m to replace its non-compliant budget and accounting system, plus $100m on fixing or
replacing other systems. Despite these efforts and those being made in the private sector, an independent study of New York's
infrastructure has estimated that the city still faces massive disruption for up to a month at the start of the year 2000.

The study, carried out by UK-based Corporation 2000, expects the city's hospitals to be reduced to accepting emergency
cases only, and schools to be closed for up to a month. Power supplies and telecoms are only expected to be available at half
their normal levels, and banks and the stock market will be shut for up to eight days.

Corporation 2000 arrived at its assessment, which was presented to the State's year 2000 project leader, by using a team of
postgraduate students to identify the city's key infrastructure components, assess what services they depend on, and then
evaluate the progress of year 2000 projects in each component and its suppliers.

The model also takes into account factors such as geography, and the historically-assessed political and economic capability of
a city to tackle major problems.

Commenting on the findings, Andrew Eristoff, chairman of the Task Force on Technology in Government for New York City
Council, said, "It does sound as if lives would be at risk if that were the case."

The State government would not comment on the study's findings. A spokesman said individual departments are already
working on contingency plans to deal with problems that could arise over the millennium. Next week, how New York is
tackling the year 2000 bomb.

Corporation 2000's predictions for New York in 2000

Electricity supply only 50% available 1-10 January
Hospitals emergency-only for four weeks
Schools closed for four weeks
Stock market and banks closed for eight days
Telecoms - 50% availability 1-10 January
Post - 10 days disruption
Transport (air/rail/bus) - 30 days disruption

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