CIRCULAR NO. 98-55 AGENCY RESPONSE TO Y2K MILLENNIUM BUG

As you are aware, the Year 2000 problem, the so called 'Millennium Bug', is a potentially serious issue that, left unaddressed, could cause major impact on the economy of NSW and the lives of its citizens. As a consequence, Cabinet has agreed on a specific course of action to address this problem.

Cabinet's decision was promulgated via Premier's Memorandum 98-14 in June, 1998, and required a number of things to be done. Specifically, each general Government Agency, each State Owned Corporation (SOC) and each Government Trading Enterprise (GTE) was required to report their progress in addressing the Year 2000 problem to the Office of Information Technology by 30 June, 1998.

The Public Sector Management Office, as required by Premier's Memorandum 98-14, is currently taking steps to amend CEO Performance Agreement requirements to give priority in addressing the Year 2000 problem. Annual reporting requirements are also being amended.

While the adequacy of agency responses is currently being assessed, I am advised by the Office of Information Technology that a number of agencies have not responded as required by Premier's Memorandum 98-14. This is a matter of great concern.

The Minister for Wormation Technology, the Hon. Kim Yeadon, NIP, has recently written to his colleagues advising them of the general lack of response from a number of agencies and stressing the importance of the Government being seen to lead the way in addressing this very important issue. The Australian Stock Exchange has recently expressed its satisfaction to the Government as to the steps taken in Premier's Memorandum 98-14 and the lack of response from some agencies is of concern in that regard.

Therefore, would you please take immediate steps to ensure that the agency or agencies for which you have responsibility have responded to the Office of Information Technology or, if they haven't, that they do so as a matter of urgency. This should also extend to administrative bodies for which you are responsible.

OIT is currently assessing the adequacy of the reports received and will report to Government and agencies in that regard in very early August. At that time, it is hoped that a whole-of-govemment response can be prepared.

I recognise that the Year 2000 problem, as important as it is, has to compete with other priorities, but in view of its potential impact, it must be afforded a very high priority. For this reason, I am prepared to approve of Chief Executive Officers employing persons on a fixed term non-renewable SES package to provide an in- house Year 2000 project management capability.

The position will not be counted as part of the agency's agreed senior profile and I will not approve renewal, other than under the most exceptional of circumstances. Agencies proposing to make use of these arrangements will in the first instance be offered the services of suitably qualified SES officers currently unattached from their Departments. It will also be possible for positions to be shared between Departments on a part time basis, where CE0s judge it appropriate to their circumstances and can arrive at suitable arrangements between themselves.

Individual requests for these additional positions should be submitted to me for approval. Inquiries about the availability of unattached SES officers should be directed to the Assistant Director-General PSMO, Jan Smith, on 9228 4201.

Agencies requiring assistance also have access to the three period panel contracts, ITS2060 (Business Analysts), ITS2061 (Rectification Specialists) and ITS2062 (Tools and Services).

Valuable assistance is also provided by the Year 2000 web site, www.y2k.gov.au

Should you require further information please contact Tony Gates, Manager Year 2000 Compliance at the Office of Information Technology on 02-9228-3689, who is able to answer your questions regarding the Year 2000 Millennium Bug.

Your urgent and immediate attention to this matter would be appreciated.

C. Gellatly

Director-General