INDY Committee Report
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SUMMARY
On the eve of the new millennium Canadians face a number of challenges, one of the most important of which is the Year 2000 computer problem. A few years ago virtually no one had heard of this problem, while today Canadians are often bombarded with contradictory information on the subject. That is why the Committee has tried to evaluate the situation by inviting representatives from different private sectors and organizations, from certain public sectors of provincial or municipal governments, which are not under federal jurisdiction, and finally from federal services.Since issuing its first interim report on the subject last May, the Committee received the Year 2000 Task Force's final report in the beginning of July and the federal government's answers to the Committee recommendations in October, and has been vigilant in monitoring progress towards overcoming the Year 2000 problem. This report is the result of the Committee's second review of Canada's progress. The Committee anticipates holding its next round of hearings in the April to June 1999 time frame.
The Committee recognizes the actions of the federal government and others in implementing many of the recommendations from its first interim report. Specifically, the federal government, by implementing our recommendation 7, with regards to the full amortization of the new computers purchased by small and medium-sized firms, has made it easier for them to be Year 2000 compliant. Progress has been made in many areas since the Committee held its first round of hearings, but much remains to be done and some areas need particular attention.
The time remaining to find and correct problems is growing short. Most Canadians and Canadian companies and institutions are well aware of the Year 2000 problem but many small and medium-sized enterprises (SMEs) and even some larger manufacturers are not yet addressing the issue. This is particularly distressing since many SMEs do not appreciate their legal responsibilities nor the fact that their business insurance will not cover Year 2000-related problems that they should have anticipated and corrected. The Committee sees an urgent need for more firms to test now and for businesses to realize they are fully accountable for failure to act. Firms also need to start preparing contingency plans and business resumption plans to help ensure that they remain in business in the new millennium. The Committee reiterates the need for businesses to act now and not wait until it is too late.
One of the more encouraging findings is that Canadians can likely expect that essential services such as electrical power and communications will not be interrupted. Nor are there likely to be major problems with the financial services, transportation sectors, and most essential public services that make up the infrastructure on which society and the economy depend.
Another positive sign is that the main stakeholders involved in emergency preparedness, including all levels of governments, are working on plans to cover many of the possible Year 2000 problems, including those resulting from the inevitable undetected "glitch." The federal government has shown leadership in creating a National Planning Group to coordinate these efforts nationally and provide advice to the Department of National Defence in preparing for possible aid to civilian authorities. Provincial and municipal governments are working collaboratively with the federal government and providers of essential services to reduce the chances of problems and to develop appropriate emergency preparedness measures. Although the extent of possible problems will not be known until much closer to the new millennium, all Canadians should be prepared to take whatever measures are recommended to prepare themselves and their families to handle possible problems and to be ready to do their part to help.
Some sectors, notably agriculture, are only now being provided with the information that will allow them to assess the impact of the Year 2000 problem and to start planning to fix them. The Committee noted that the agricultural sector needs additional support to become Year 2000 ready and has sent a letter to the Minister of Finance on a specific concern related to this sector.
The Committee heard how the health care sector is working diligently to resolve its particular Year 2000 problem. The testimony was encouraging, but given the magnitude of the task for health care and the limited time and financial resources, this remains an area of concern. The Committee's recommendation in this area is that the federal and provincial/territorial governments continue to review this situation on an ongoing basis.
The Committee was informed that larger municipalities are actively working on the Year 2000 problem and that essential municipal services such as water and wastewater and police services can be expected to continue to function. A potential area of concern is the smaller communities who although they may technically have a simpler task to become Year 2000 compliant, may often be unaware of the diverse aspects of the problem and lack the necessary expertise.
Throughout the hearing, the Committee heard repeatedly about the high level of interconnection that exists in our economy. Each sector depends on many other sectors of the economy if their own operations are to continue. This has created a high level of anxiety as the various sectors become concerned about the progress of the others, both private and public, in dealing with the Year 2000 challenge. The Committee's recommendations in this area include:
- Increased sharing of Year 2000 test results and provision of publicly available progress reports by business and the public sector.
- Providing publicly available information on the status and progress of emergency preparedness measures at all levels of government.