technological meltdown associated with the new millennium.

That was the warning from a Y2K consultant, who has been advising overseas companies on avoiding potential problems when the new century begins.

Y2K is the name given to the potential situation where computers are unable to cope with the change in date from 1999 to 2000 -- as at present they only recognise dates with the last two digits.

It is feared many computers will simply shutdown as the date turns to zero at the end of the year.

Speaking to Hamilton Rotary, Martin Myers, who runs a year 2000 contingency planning company in Virginia, US, said it was important that companies looked not only at themselves but also at their counterparts.

He said in Bermuda, where the two main pillars of the economy are tourism and international business, it was essential that the structure of both industries was analysed in the coming months.

Companies, who may have addressed the problem themselves, needed to look at the firms to whom they supplied or sold services, and at those who they depended upon for business.

There could be a chain reaction, he said, where the failings of one company to recognise the issue could harm others who suddenly find themselves without a main customer or supplier.

In addition, tourists who were intent on visiting Bermuda for the New Year celebrations would want to know that the hospitality sector were managing any potential pitfalls.

"The consequences maybe serious but the severity may be solved by planning,'' he said.

Mr. Myers said recent US statistics showed a 40 percent chance of power loss, 15 percent chance of banking errors and a ten percent probability of errors with shipping. One airline had cancelled planes on December 31 and January 1 to avoid any hitches. He said the US and UK were currently leading the way in addressing the issue, but many large corporations and utilities had already experienced major difficulties when running Y2K tests.

BUSINESS BUC