Update from Canada's Y2K task force
YEAR 2000 COMPUTER CHALLENGE: SITUATION BRIGHTER BUT STILL SERIOUS
OTTAWA, July 6 /CNW/ - Jean C. Monty, Chair of Task Force Year 2000,
today warned that in spite of significant progress accomplished over the past
six months, many Canadian businesses are still underestimating the impact of
the Year 2000 computer problem, and that the overall situation remains
serious.
Speaking at a news conference held to release the final update to the
Task Force Year 2000 report made public in February, Mr. Monty said: ''The
national supply chain remains vulnerable. With only 18 months left before
Year 2000, it is critical that firms _ particularly those who started late _
catch up. In many cases, it could already be too late and contingency plans
must be drawn up immediately, both within individual firms and at the national
level.''
The Task Force report, titled ''A Call for Action: The Eleventh Hour,''
includes a summary of a new Statistics Canada survey, also made public today,
which shows a marked improvement in business preparedness in comparison with a
similar survey conducted last October. Among the new survey's findings:
- 99 percent of businesses in Canada are now aware of the problem;
- whereas only about 45 percent of business were taking action last
October, that number now stands at 70 percent;
- about 94 percent of medium-sized and large firms are now taking action;
- the percentage of large firms now taking a formal approach has
increased from 48 to 67 percent;
- firms taking action represent close to 90 percent of employment of the
survey population, and
- nearly one third of firms report that they are ready.
''Those numbers are indeed very encouraging,'' said Mr. Monty, who is
also President and CEO of BCE Inc. and Chairman and CEO of Bell Canada, ''but
we must also take note of other, more disturbing findings,'' such as the fact
that:
- one third of small firms have not yet acted;
- almost one third of large firms have not instituted a formal action
plan;
- only 37 percent of medium-sized firms have a formal action plan.
''Obviously, our first report, A Call for Action, published last
February, and our subsequent communications campaign succeeded in raising
awareness of the gravity of this problem among many business leaders and
convinced them to take the necessary steps,'' said Mr. Monty. ''But, with the
clock ticking ever more ominously, we must now urge firms to develop effective
contingency plans to prepare themselves for possible failures and to protect
themselves from the unpreparedness of others. In many cases, such contingency
plans will require significant budget allocations, in-depth risk management,
stringent prioritizing and total focus on mission-critical systems.''
Both Statistics Canada surveys monitored the preparedness progress of
firms operating in the main sectors of the Canadian economy. The latest
survey found that the finance and insurance sector has maintained its
leadership position in preparing for the Year 2000 challenge, while the
primary industries still lag behind the other sectors, despite significant
progress. Other sectors monitored include manufacturing, trade and other
services, transportation, communications and utilities.
''We are also worried by the lack of transparency on the preparedness
efforts of many infrastructure industries,'' the Task Force Chair added. ''For
instance, while banks, telecommunications companies and air carriers have
cooperated in a formal way among themselves to address the Year 2000 problem,
that is not yet the case for providers of other essential services such as
electrical power, oil and gas, food and water supplies and other essential
services.
''That is why we are calling on the federal, provincial/territorial and
municipal governments to put in place an effective information-sharing
mechanism, ideally before September 1998, that would focus on infrastructure
industries and other essential services.''
A Call for Action: The Eleventh Hour contains a series of new
recommendations addressed to Canadian businesses, national associations and
governments. Among them is a call to firms to accelerate the comprehensive
testing of their systems and a request to Statistics Canada to conduct another
survey that would focus on testing results and time lines, and to include the
public, para-public and private sectors. These results should be made
available no later than the end of March 1999.
Mr. Monty praised national associations that have put in place specific
communications strategies to raise awareness of the Year 2000 problem among
their members and the public. He singled out the financial, insurance,
securities and auditing communities for their efforts in turning awareness of
this problem into action. Mr. Monty also lauded the leadership of Industry
Minister John Manley and that of the Standing Committee on Industry in dealing
with this national challenge. ''The cooperation between private sector members
and the federal government was excellent,'' he said.
The total cost of the Task Force Year 2000 exercise is $6.5 million,
equally shared by the private and public sectors. The communications campaign
represented close to three quarters of this budget. ''I am very proud of what
we were able to accomplish in a relatively short period of time with the help
of both our public and private-sector partners. It is now up to executives to
take ownership of this challenge at the most senior level and to exercise the
due diligence needed to meet the Year 2000 deadline,'' concluded Mr. Monty.
Task Force Year 2000 was created by Industry Minister John Manley in
September 1997 to assess the state of industry preparedness to deal with Year
2000 computer risk and to provide leadership and advice on how to reduce these
risks.
The Task Force and its partners produced a series of documents to help
business executives deal with the year 2000 problem. This information is
available on the Web at strategis.ic.gc.ca and by telephone by
dialing 1 800 270-8220.
COMPENDIUM OF RECOMMENDATIONS
Recommendation 1:
1) All businesses that have not yet done so should immediately develop
contingency plans, including extraordinary measures that might be required to
minimize the impact their system failures would have on their partners, and to
shield themselves from potential partners' failures.
2) In the spring of 1999, the Business Council on National Issues should
hold another round table meeting for chief executive officers to assess
Canadian progress in contingency planning.
3) The Task Force recommendations contained in the Task Force Year 2000
February report, A Call for Action, where still appropriate, should continue
to serve as a basis for private and public initiatives to accelerate Canadian
business preparedness for the Year 2000 challenge.
Recommendation 2:
All privately or publicly owned businesses, whose operations are mission
critical to others, should:
1) accelerate their testing efforts and realign their corporate
priorities accordingly;
2) seek an independent audit of their Year 2000 preparedness activities;
and
3) share with their partners and constituencies summaries of their
testing activities and remedial actions based on their test results as soon as
possible, preferably before the end of 1998.
Recommendation 3:
1) Canadian businesses, as part of their contingency planning for the
Year 2000 challenge, should anticipate the impact that an unexpected, but
possible, failure of one of their mission-critical systems could have on the
health and safety of their employees, on the environment, on customers and/or
the public.
2) Canadian businesses, in close consultation with their employees and
with local authorities, should participate in the development of measures
aimed at mitigating the potential negative impact a system failure could have
on their local community.
Recommendation 4:
1) Consumer groups, Better Business Bureaus and the Alliance of
Manufacturers and Exporters Canada should investigate the potential continued
availability of products that are not Year 2000-ready.
2) If necessary, the federal government, in association with Canadian
businesses and consumer groups, should plan and implement a communications
campaign aimed at educating purchasers to enquire and systematically seek Year
2000-ready products.
Recommendation 5:
1) The federal, provincial/territorial and municipal governments should
put in place an information-sharing mechanism on the Year 2000 challenge, with
a particular focus on infrastructure industries and vital and other essential
services, by September 1998.
2) At their next conference this summer, the provincial premiers and
territorial leaders should endorse the creation of this mechanism.
3) National associations should set up ad hoc Year 2000 committees,
enabling members of the same industries to share the experience gained by
others to help accelerate their states of preparedness.
4) The Department of Foreign Affairs and International Trade, in
cooperation with other federal departments with infrastructure services
responsibilities, should monitor the Year 2000 preparedness progress of
Canada's major trade partners.
Recommendation 6:
1) Statistics Canada should carry out a third survey on Year 2000
readiness in 1999. This survey should focus on testing results and time lines
and be expanded to include the public, para- public and private sectors. The
results should be made available no later than the end of March 1999.
2) The Standing Committee on Industry should continue to monitor the
developments of the Year 2000 challenge in Canada, review the results of the
final Statistics Canada survey and address recommendations to the relevant
authorities.
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For further information: Sophie Lussier/Odette Trottier, Optimum Public
Relations (Montr‚al), (514) 282-4765/(514) 282-4759, slussier@cossette.com,
otrottier@cossette.com; Colleen Finnegan/Andr‚ Poirier, Optimum Public
Relations (Toronto), (416) 922-3050, ext. 3245/3279,
cfinnegan@cossette.com, apoirier@cossette.com or Lisa Reifenberg,
Optimum Public Relations (Vancouver), (604) 669-2727, ext. 271
lreifenberg@cossette.com; Source : Doug Drever, Industry Canada,
(613) 946-9938 drever.doug@ic.gc.ca
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