§ Mr. Malcolm BruceTo ask the Secretary of State for Defence what is his latest estimate of the cost to the armed forces of dealing with the millennium computer problem, including the embedded chip problem; how much has been spent to date; if he will break these figures down to distinguish between costs to(a) the Army, (b) the Royal Air Force and (c) the Royal Navy; and if he will make a statement. [37994]
§ Mr. SpellarThe predicted cost to MOD of dealing with the Year 2000 date change problem is £200 million. This is the same figure as that reported in November 1997 and includes the cost of addressing the embedded chip problem. The cost estimate for the problems found so far 221W is £150 million, but is expected to rise to £200 million as the remaining systems are assessed and rectification work on them costed.
Some £4.4 million has been expended to date. This reflects only the cost of work so far completed. It does not include expenditure which has been contractually committed but not yet paid.
The year 2000 cost figures are collected within MOD on a budget holder basis and not by Service. The costs provided include the total for all of MOD's budget areas.