Private firms and Government have linked up to beat the Y2K bug, it was revealed yesterday.

Now power firm Belco and accountants KPMG will work with a special Government team to ensure Government computers do not suffer problems when the clocks click forward into 2000.

And a Y2K Programme Management Office is to be set up in Development and Opportunity Minister Terry Lister's offices.

Premier Jennifer Smith said it was "vital'' Bermuda is prepared to meet the technological challenges of the new millennium.

She added: "All reasonable steps should be taken to ensure there are no failures in critical Government information technology systems and that -- in the event there are disruptions in non-critical systems, their impact on Bermudians is minimal.'' Greg Swan, who helped Belco update its own computer systems, will be seconded to the new team for seven months, while other personnel have been recruited from a variety of Ministries.

And, earlier this week, 50 Government workers from all over the Civil Service underwent a three-hour training session to prepare them for the run-up to January 1, 2000.

Belco chief Garry Madeiros said: "We are excited to have the opprotunity to work in partnership with the new Government.

"This opportunity will provide tremendous benefit, not only to Gregory Swan in his long-term career development, but also to our company in the experience that he will gain in this process.

"This sharing of experience between Government and the business community will benefit Bermuda for the long-term and we look forward to fostering this partnership.'' The Y2K bug arose because computers were programmed with the last two digits of the year, meaning when the new millennium begins -- that, unless systems are updated, computers will be unable to recognise 2000 and click straight back to 00, or 1900, causing systems failures.