BUSINESSES are already being bitten by the millennium bug and "time has very nearly run out", the Prime Minister has warned.

Mr Blair made his comments in response to an alarming report from the Government-funded millennium bug-busting organisation Action 2000.

The survey found fewer than half (43 per cent) of British firms were on course to complete preparations by the new year.

Although understanding and awareness of the bug was increasing, evidence of real action was still unacceptably low, the report found.

Mr Blair said: "The bug is biting now. One in 10 companies interviewed by Action 2000 have already suffered disruption caused by it.

"I strongly urge board directors, managers and employees alike to ensure their firms, their jobs and their livelihoods are safe from the bug."

afety

One of the strongest issues to come from the latest report, the fourth since the Government-funded Action 2000 came into being, was that of health and safety.

Managing director of Action 2000 Gwynneth Flower said: "It is worth reminding companies that there is an explicit legal duty on employers to identify what they need to do to ensure health and safety in the workplace by carrying out an assessment of the risks. The millennium bug is such a risk."

Action 2000 had previously stated that it would start to 'name and shame' those companies lagging behind, but said it was still too early to start that process.

Anew advertising campaign highlighting the key findings in the report will be launched in national newspapers this Sunday.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.