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Joint Hearing: "Year 2000 Risks: What are the Consequences
of Information Technology Failure?"
March 20, 1997
The Government Management, Information, and Technology
Subcommittee of the House Committee on Government
Reform and Oversight and the Subcommittee on Technology
Subcommittee of the House Committee on Science held
a joint hearing on March 20, 1997 entitled, "Year
2000 Risks: What are the Consequences of Information
Technology Failure?" Outside witnesses included Mr.
Bruce Hall, Research Director, Gartner Group; Ms.
Ann Coffou, Managing Director, Year 2000 Relevance
Service, Giga Information Group; Mr. Vito C. Peraino,
Attorney, Hancock, Rothert and Bunshoft; and Mr. Harris
Miller, President, Information Technology Association
of America.
The witnesses painted a dismal picture of our ability
to prevent a computer crisis in the Year 2000. Highlighting
a problem called the "Time Horizon to Failure" (THF),
Mr. Hall pointed out that, while much of the current
furor around the Year 2000 problem deals with "looking
backward" from the Year 2000, "forward-looking" technologies,
such as credit cards with expiration dates in or beyond
the Year 2000 are already experiencing problems. He
urged the U.S. Government to stop just "assessing"
and start "acting." The Gartner Group has estimated
that it will cost up to $600 billion worldwide to
fix the Year 2000 problem. Ms. Coffou focused on the
often ignored problem of imbedded microchips in VCRs,
elevators, traffic lights and other electronic equipment.
She argued that, while it is estimated that only 2-4%
of imbedded chips will face a problem in the Year
2000, all equipment must be tested. She gave examples
of microchip failure in the Year 2000 ranging from
elevators that simply stop working to wastewater treatment
facilities that will malfunction, discharging raw
sewage. She warned that even household thermostats
could contain year-sensitive microchips. Mr. Peraino
illuminated the pending litigation crisis, and he
urged Congress to ask companies to disclose whether
they are Year 2000 compliant immediately. In support,
ITAA's counsel, Mr. Marc Pearl agreed that the potential
for litigation is enormous, despite the fact that,
in the Information Technology arena, the responsibility
for product function ultimately lies with the user.
Finally, Mr. Miller touted the value of the Information
Technology Association of America (ITAA)'s Year 2000
certification program.
The panel pointed out that systems around the globe
must be compliant. For example, in order to use a
Visa card to get money out of an ATM machine, the
ATM, the branch system, the bank's mainframe, and
the Visa systems must be Year 2000 compliant. Likewise,
although the U.S. Government may not have direct computer
links to foreign governments, the U.S. systems are
dependent on foreign telecommunications systems which
may have a Year 2000 problem.
Witnesses recommended that the Congress take an active
role in raising awareness of the problem, pointing
to United Kingdom's Robin Guenier's effective use
of his bully pulpit to cajole industry to action.
The panel argued that the Year 2000 crisis sprung
upon us in large part because technical experts have
been unable to get the attention of their superiors.
Although Congress can help by providing the legislative
framework, its most important role is to make sure
both the private and public sectors realize the seriousness
of the Year 2000 problem and begin to remedy their
computer systems immediately.
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