Prime Minister Tony Blair's new initiative to tackle the Millennium Bug was today welcomed by technologists representing small businesses in North Yorkshire - but one described it as "a drop in the ocean."

The premier announced today a raft of new proposals backed with cash to tackle the problem of computer systems' clocks ending when the year 2000 begins, including -

£40 million to set up a network of centres of excellence in information technology training

A further £30 million to help small and medium-sized firms develop skills to assess and fix their bug problems

Increased funding for Action 2000, the awareness-raising programme to £17 million to help get other countries, particularly trading partners, up to speed.

The announcement was welcomed by James Houston, a director of York and North Yorkshire Chamber of Commerce and managing director of York Multimedia Ltd, of Walmgate, York.

He said: "It's a drop in the ocean, but better late than never. Of course, the extra money and new centres of excellence must be welcomed but our main concern is to get smaller companies to sort it out in time which is running out very quickly.

"It is not just a question of computers but burglar alarm systems and even units within closed-circuit television. The bigger companies in North Yorkshire will have already sorted it out but people who have left it until now may have problems in getting it done on time."Clearly some of the main beneficiaries will be the training providers and computer consultants."

Mr Houston said it had yet to be made clear to the York and North Yorkshire Chamber's more than 600 members how they could usefully tap into this new influx of money.

"The Chamber will be looking to establish this on behalf of its members and, if appropriate, to put them in touch with the right consultants to sort out their millennium bug problems."

The premier's announcement comes as a new computer centre for people managing smaller firms of up to 250 employees is scheduled to open at Clifton Moor, York, on Thursday.

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