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Gold/Mining/Energy : GPW Group West Systems Ltd. (Year 2000 Software Company)

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To: Tom McIlwain who wrote (712)5/17/1998 9:14:00 AM
From: Gary H  Read Replies (1) of 1443
 
OTTAWA (CP) -- A Commons committee examining the millennium
computer bug pinpointed Canada's hospitals, utilities, and defence sector as
critical areas of concern in a report Thursday.

It also called on the prime minister to take a bigger leadership role in the
issue.

Official recommendations on how Canada should deal with the year 2000
problem seem to be released almost every month these days. But the
standing committee on industry, chaired by Liberal MP Susan Whelan, was
able to go in to significantly more detail after hearing testimony from and
grilling an impressive list of executives, bureaucrats and industry associations.

"There's a recommendation that the ministers of energy get together
federally and provincially to look at that sector. We've recommended the
same for the health sector," Whelan said after the unanimous all-party report
was tabled in the House.

"We're concerned about what would ensure a good quality of life in
Canada, what will ensure that Canadians can live comfortably, what are the
critical sectors."

While the committee's recommendations contain some of the same pat
statements on year 2000 compliance as others before it, they were able to
come up with a clearer picture of how Canada will be affected by the
computer glitch by zeroing in on each sector individually rather than simply
dealing with statistical information.

Some of the most shocking testimony came from the Ontario Hospital
Association, which warned the public health care system in Canada was in
serious danger because of thousands of pieces of medical equipment that
could potentially fail on Jan.1, 2000, due to imbedded computer chips.

Members recommended that Health Canada publish the names of
manufacturers and importers of medical devices who do not furnish year
2000 compliance information.

"When you're in critical condition, we did have evidence that you have
many, many pieces of equipment attached to you that could have imbedded
chips, and that's why we know the hospitals are taking action, we know
there is a cost, and we know they need assistance," Whelan said.

The report touched on the imbedded chip problem at length, since many
companies have only begun to realize that not only their software and
computers need to be fixed to reflect the date change but also their
machinery and digital equipment.

The energy sector, including electricity, gas and oil were targeted as
essential services where progress needs to be closely monitored by
provincial and federal governments.

The Department of National Defence also set off alarm bells with the MPs
when representatives admitted their pace was slower than that of the finance
sector, even when dealing with major weapons systems.

The committee also recommended that the Prime Minister's Office take a
leadership role in spreading awareness about the millennium bug -- not just
within government departments and cabinet but countrywide. U.S. President
Bill Clinton and British Prime Minister Tony Blair have both made public
statements about the issue, but Jean Chretien has so far been silent.

An overview of issues to be discussed by Chretien at this week's G-8
summit included a reference to the millennium bug.

"I brought this question up in the House but did not get a direct answer ...
this was the first clear statement by the prime minister in this regard," said
Bloc Quebecois MP Francine Lalonde.

Some of the proposed legislative action outlined in the report includes:

A separate class of capital cost allowance to provide for 100 per cent
write off when replacing non-compliant computer hardware, only available
until end of this millennium.

Amendments to add explicit responsibility of ensuring year 2000
compliance to the list of directors' duties for federally incorporated
businesses.

The millennium bug originates in the 1960s and '70s when early computer
programmers used a two digit code to represent the year date. Thus, 98 is
1998 and 00 is 1900 -- not 2000.

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