A GOVERNMENT health warning has been slapped on businesses still ignoring the notorious millennium computer bug.

Two thirds of smaller companies have done nothing to combat what is claimed to be the world`s greatest threat and in Bromley the picture is no different.

Business pressure group Bromley Business Partnership is telling its members not to bury their heads in the sand.

Spokesman Roger Megeary said: "There are very few companies that are not aware of what is going on. They have a strong grasp of the consequences.

"It is just that many still believe someone is going to come along in a year or two and sort it out with some ingenious technology. What you have to believe is this is going to have a massive impact, which could threaten your future."

The source of the millennium bug panic goes back to a cash-saving computer programming trick.

In the 70s early COBOL programmers created computer clocks using only two digits, so cutting down on what was then expensive memory costs.

It meant 1977 for instance, was recorded as just 77. It works fine until we reach 11.59pm on December 31, 1999.

When that minute is up some computers will think it is 1900 again, some may go back to predefined dates.

Others will simply crash. The absence of those two digits has caused a global crisis of apocalyptic proportions.

It affects the global banking system, global traffic control, global flights, lift security, fire alarms and some cars - virtually every aspect of a computer-dependent society. The whole world could grind to halt.

For small companies the effects are very serious. Experts say big business like Marks & Spencer who have spent millions fighting the computer bug will ditch their small suppliers who have ignored the problem. IT specialists Kent Computer Products are helping hundreds of businesses - large and small - check computers for the millennium bug. They expect a five-fold increase in growth over the coming year.

Managing director Mike Schorfield said: "There are a lot of computer companies around who are already checking systems, but there are cowboys. The important thing is that people get guarantees that when the Year 2000 comes along they really are protected. There are too many people selling boards, go faster stripes, widgets - just junk."

The other problem, according to Mr Schorfield, is software. He said there were still packages on the market being sold which are not "millennium compliant".

Lloyds Bank is already spending £90m to kill the millennium bug. In Britain the costs will be in the billions. Mr Schorfield said: "We expect one percent of business to suffer in the first hours of the new century. A third of companies will be affected It is the world's largest problem."

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