The Government has been actively addressing the year 2000 problem which can arise with computers and other equipment, and receives regular reports on the progress being made in achieving compliance. However, there is no precedent for the year 2000 problem and it is widely recognised that it is difficult to anticipate exactly what remedial action will be necessary and the total costs involved. The approach being taken is to provide a contingency sum of £40 million which has not yet been allocated to individual Departments or offices.
The purpose of the contingency sum is to provide for necessary expenditure by Departments or offices, to the extent that it cannot be met from normal allocations to modify or replace any computer or other electronic equipment which would malfunction because it could not cope with dates after the end of 1999. The contingency provision is entirely for use by the public service and is not available to private companies.