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INTRODUCTION

The Standing Committee on Industry first heard of the Year 2000 computer problem, or Millennium Bug, in 1996 and immediately took action. At that time it seemed difficult to imagine that the practice of abbreviating the year to two digits in computer programs and in microprocessor embedded chips (found in all sorts of devices like VCRs, fax machines, telecommunication systems, computerized control systems) could potentially cause such problems throughout society when the year goes from 1999 to 2000. The total cost of remedying this problem in Canada will remain unknown until well into the next millennium but will likely be in the range of $20 billion to $50 billion.

Last spring, after hearing from the public and private sector, the Committee decided that it would be prudent to highlight the importance and urgency of the Year 2000 problem. Consequently, it presented its first Interim Report, The Year 2000 Problem - Where Is Canada Now?, on May 14, 1998. The Committee also made a commitment to actively monitor the Year 2000 problem in Canada and continue with hearings. The Committee appreciates the very positive response of the federal government and others, such as sectoral and industry associations, to the Committee's previous 26 recommendations (Appendix A is a copy of the federal government's response to the Committee's interim report which was tabled in the House of Commons on October 6, 1998).

This latest round of hearings has updated the Committee on how well many sectors of the economy are resolving the Year 2000 problem. It also allowed a review of some areas of the economy, such as provincial and municipal governments and the resource sectors, from which the Committee had not had an opportunity to hear during its initial review last spring.

The Committee learned how, if not corrected within the next 10 months, the Year 2000 problem could negatively impact every Canadian and our entire economy. This is a non-partisan issue facing all Canadians. It goes beyond jurisdictional boundaries. It extends beyond national boundaries, and also threatens our trading partners. It must be solved.

The objective of the solutions is deceptively easy to state: to ensure that computers and electronic equipment operate just as smoothly on January 1, 2000 as they did on December 31, 1999. Correcting the problems is simple to explain but time-consuming and expensive to implement. Computers, computer software and the many databases that include dates must be checked and those with problems must be fixed, upgraded or replaced. Since today many computer systems are linked, no organization or company can solve this in isolation and must work with its clients, suppliers, and partners. In addition, many of the microchip-based systems ("embedded chips") that are everywhere in modern society, and often hidden from view, use two-digit years and must also be checked and then either fixed or replaced.