NOTE FOR FINANCE COMMITTEE

Year 2000 (Y2K) Compliance

INTRODUCTION

At the Finance Committee (FC) meeting on 3 April 1998 when Members considered the paper FCR(98-99)5 on the proposal to create a new commitment for, inter alia, implementing a Year 2000 (Y2K) Compliance Project in the Education Department, the Administration undertook to provide more comprehensive information on the action taken within Government to tackle the Y2K problem.

IDENTIFICATION OF THE PROBLEM

2. The Administration has been conducting quarterly surveys on Departmental Y2K Compliance plans. As at end 1997, Information Technology Services Department (ITSD) has found that out of the total 53 203 systems in bureaux and departments, about 39.7% (21 113) were Y2K compliant. 6.8% (3 627) would be retired or replaced. 32.6% (17 321) of the systems were non-Y2K compliant and require remedial work. The status of compliance had yet to be established for 20.9% (11 142) of all systems.

   PROGRESS ON THE RECTIFICATION WORK

3. ITSD has been co-ordinating and monitoring the progress of Y2K Compliance work within Government. ITSD has been liaising with departments to -
   1. ascertain the compliance status of those outstanding systems (about 21%), and where applicable, provides the departments concerned with the technical assistance and expertise required;
      
      
   2. monitor the progress of remedial work required and advance the completion of the remedial work of those Y2K non-compliant projects scheduled for the last two quarters of 1999 to at least the second quarter of 1999, and to draw up contingency plans where appropriate; and
      
      
   3. ensure that departments will have a better understanding on Y2K Compliance for their existing computer systems. ITSD is taking active steps in enhancing departments' awareness on the matter through the organisation of exhibitions and seminars as well as the issue of a number of ITSD circulars and letters to heads of bureaux and department. A workshop for departments was held on 31 March to 1 April 1998 to exchange ideas on ways in dealing with the Y2K problem.
      
      

4. Apart from conducting quarterly surveys to monitor closely the progress in remedial action being undertaken by various departments for the Y2K problem, ITSD has set up a Y2K Compliance Programme Management Group, chaired by the Director of Information Technology Services, to oversee the assessment and remedial action taken.

5. In addition, the Administration set up a Steering Committee on Y2K Compliance in March 1998 with the main objectives to -
   1. review and monitor the progress of work related to Y2K Compliance within Government and undertaken by non-governmental organisations (NGOs) funded or regulated by Government respectively. The Government is keen to ensure that these NGOs will not be affected by the Y2K problem and their services to the public will not be unduly disrupted; and
      
      
   2. work out and monitor implementation of a strategy for promoting awareness of Y2K problem on a community-wide basis.
      
      

   The Secretary for the Treasury in his capacity as the Secretary for Information Technology and Broadcasting (designate) chaired the first meeting of the Steering Committee on 31 March 1998. The Committee will be under the purview of the Information Technology and Broadcasting Bureau upon its establishment on 9 April 1998.

   FUNDING OF Y2K COMPLIANCE PROJECTS

6. Under the present arrangement, those Y2K Compliance projects costing $10 million or less each are funded under the block allocation of Capital Works Reserve Fund Head 710 Computerisation and approved under delegated authority. A total of 32 such projects have been approved or are being processed for approval. For major projects which cost more than $10 million each, we will submit their funding applications to FC for approval. So far, three of such projects involving the Hong Kong Police Force, Water Supplies Department and Immigration Department have already been approved by FC.

   OTHER ACTIONS IN TRAIN

7. In November 1996, the Administration had already issued the guidelines for tendering of information technology (IT) equipment and services to include the Y2K Compliance requirement. We have also recently issued similar guidelines to promulgate the same requirement for other Government purchases which may not be directly IT-related but may have embedded computer chips.

8. ITSD is also liaising closely with the Electrical and Mechanical Services Department and the Office of the Telecommunications Authority on the Y2K Compliance of those electrical and mechanical systems, and telecommunications equipment within their ambit.

   
   April 1998