WHEN the clock strikes midnight on December 31 1999 it will signify the arrival of the new century and the start of possibly the most serious problem facing British business ever.

Many date-dependent systems could fail to recognise the year 2000 causing enormous disruption.

The Millennium Bug is dangerous and businesses are already dealing with the problem by writing booklets, holding conferences, employing new staff and buying new equipment.

Companies are putting it on the top of their agenda - customers are now refusing to do business with them if their systems are not cured.

Caroline Mooney, Royal Bank of Scotland press officer, says they have been aware of the problem for a while: "We have produced a booklet to help both our customers and staff.

"We have looked at our software and realised where we need to make changes. By the end of the year new equipment can be installed."

She added: "We have had to make sure that this new system will combat the Millennium Bug. Our whole business relies on the transfer of information so it is essential we get it right."

Awareness of the problem is high. Large companies have had experts working on it for years. Like Lancashire Constabulary's year 2000 project manager George Flanagan.

He said: "I have produced a huge plan. The research has been completed leaving it to four people to work on for a full year." Organisations such as Royal Preston Hospital and the fire brigade said they action plans in place.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.