Despite 90 per cent of Irish companies being aware of the Year 2000 (Y2K) computer date problem, only 52 per cent have begun projects to address the issue.

A new survey conducted by the Chambers of Commerce of Ireland and the Irish Computer Society has revealed that 45 per cent of companies do not expect to have all their systems compliant until mid-1999 or later.

This is significant as 80 per cent of those who had completed their projects said they had overrun their deadline. Some 16 per cent of companies said they intended taking no action to address the issue.

The survey, which was sent out to 700 companies and received 126 responses, identified the retail sector as particularly vulnerable to the problem. So far 63 per cent of retailers have failed to check the compliance of crucial embedded systems like cash registers and point of sale equipment containing concealed computer devices.

Mr Liam S. Kelly, chairman of the Irish Computer Society Y2K special interest group, said he was particularly concerned that 44 per cent of all companies surveyed had not yet assessed the possible impact on their business of those in their supply chain. In some cases whether a company is completely compliant is immaterial, if its suppliers and clients are not accordingly prepared.

Describing the chief culprits as "the corner shop brigade", Mr Kelly said: "Retailers are particularly vulnerable, as 69 per cent have not assessed the possible damage to their business from those in their supply chain." Mr Simon Nugent, chief executive of the Chambers of Commerce of Ireland, added: "The Chambers of Commerce would recommend every company be as gung-ho as possible about ensuring everyone in the supply chain carries the can for the Year 2000."

The overall costs of dealing with the problem appear considerably less than originally anticipated, with most small companies with a turnover of less than £50,000 spending less than £10,000 resolving the problem. In larger enterprises, with £500,000 turnover, 11 per cent have spent £50,000, while 16 per cent have spent between £100,000 and £500,000.

The survey concluded that contingency plans need to be urgently undertaken by both large and small enterprises. It found that only 20 per cent of companies intended to produce a contingency plan in the event of its system or supplier or customer system failure. All small and medium enterprises said they were ignoring the contingency planning issue and only companies with turnover in excess of £2.5 million showed any real commitment to having a plan B in place.

Mr Philip O'Reilly, president of the Chamber of Commerce of Ireland, warned: "The Year 2000 problem is a strategic issue unlike any other. It represents a real threat, not only to competitiveness, but to company survival if not properly addressed. Companies who continue to procrastinate on the issue are putting their businesses in danger."