HC Deb 30 March 1999 vol 328 c571W
Mr. Nigel Jones

To ask the Secretary of State for Trade and Industry what assessment he has made of the effect on British companies and information technology users of the legislation introduced in the United States of America limiting the liability and damages that can be awarded in millennium bug-related cases. [78871]

Mr. Wills

The so-called 'Good Samaritan' legislation in the United States of America, which provides companies with limited liability protection for certain statements regarding Year 2000 compliance, is designed to stimulate public disclosure of those companies' millennium bug preparations. It has been suggested that this limited protection may lead companies and individuals to seek redress in overseas countries such as the UK. My Department has considered this issue and concluded that there is no substantive evidence to suggest that UK companies will as a result be exposed to a greater risk of litigation. I believe that, in practice, the 'Good Samaritan' legislation has to date provided no protection for US companies in lawsuits about the Bug.

Mr. Nigel Jones

To ask the Secretary of State for Trade and Industry if he will assess the advantages and disadvantages of introducing legislation to limit the liability and damages that can be awarded in millennium bug-related cases. [78870]

Mr. Wills

This issue has been addressed within my Department in consideration of preparations for the millennium. It is possible that the introduction of limitations of this type would encourage companies to divulge additional information on their state of readiness, but this could unreasonably limit the availability of existing remedies available to consumers under, for example, the Sale of Goods Act 1979. The issue of disclosure in the UK is being addressed by Action 2000's Pledge 2000, whereby companies can make declarations of intent confirming their commitment to exchange information to allow others in their supply chains to prepare for the Year 2000, and to using dispute resolution outside the courts wherever possible. I believe that, on balance, the case for further legislation of this type has not been made.