Ms BAILEY (10:33 AM) —I rise today to support the Year 2000 Information Disclosure Bill 1999 . I intend addressing the issue of the Y2K bug, as it is commonly known, from the perspective of rural and regional communities. But before I do, I would just like to gently take the previous speaker, the member for Fraser, Mr McMullan, to task for some of his comments.

He made much of the fact of how advanced the United States government was in its legislation, which is very similar to this legislation, and known as `good Samaritan' legislation. I would like to remind the member for Fraser that the United States passed its legislation in October last year. So while he is chiding this government for being tardy in introducing this legislation, we are right up there in international terms.

The member for Fraser was also expressing concern about what the government is doing. If he is unaware of it, could I bring his attention to this information booklet put out by the government on Y2K? I would like to take this opportunity to mention some of the key government services that are listed in this progress report for year 2000 compliance. The government is doing exactly what the member for Fraser was saying we should be doing. Some of these key government services are health, national safety, payments, social welfare, employment, revenue collection, national security, defence and government business entities.

We are told in this booklet that the results from November 1998 are expected to show that less than five per cent of the total number of business critical systems will still be in the assessment phase. Systems in this phase are those returned for reassessment or new systems coming on line. I will not go through and detail every percentage in this report. They are quarterly reports, which is what the member for Fraser was suggesting should happen. Those percentages, of course, decrease.

To return to the main point, today I wish to comment on this legislation from the perspective of rural and regional communities. Many speakers in this debate here and outside these chambers have already spoken about the magnitude of this problem, but I really have not heard too many people speak about the magnitude of the problem from the perspective of those living in our regional and rural communities. Of course, our regional communities have always known what it is like to battle disasters. Historically, flood, famine, drought, disease and earthquakes, among other natural disasters, have been the major cause of havoc in the world.

As man has progressed, we have faced new forms of disaster related to man-made vehicles and structures. Now, however, as we move into and towards the new millennium, for the first time we face a new form of major disaster—technological disaster. We have seen how Hollywood has long filled our screens with images of technology related disasters and over the years we have become immune to this scientific form of escapism. Now the world, however, is faced with the potential for disaster that could rival Steven Spielberg at his best.

It is almost as horrifying that current estimates put the worldwide cost of Y2K compliance at $US1.5 trillion. Having said that, I believe we need to create a sense of urgency but without panic. It is vital for everybody who has, or is likely to use, any piece of modern equipment close to the year 2000 to be acutely aware of the potential dangers, what information is available and how to protect themselves as best they can. In particular, as I said, I am concerned about the impact on rural Australia. Because of distance, increasing numbers of farmers have been at the forefront of using computer technology. Indeed, computers have become the lifeblood of their farm businesses. As well, most modern or farm equipment uses at least some form of computerisation or microchip. It is these developments out in rural Australia that have introduced home computers to streamlined accounting procedures and which supply information ranging from weather forecasts to commodity prices. This has led to the use of high-tech operating systems for equipment like irrigators, humidity controls and planting systems and for a host of other applications. Unfortunately, this is the one time when being at the cutting edge of technology could indeed make our primary producers worse off.

Small operations are likely to be worse off, particularly family farms. Not only could they face problems with their farm computers, but equipment such as 24-hour timers, herd breeding registers, dairy equipment, modern tractors with computer chips for measuring yields and light aircraft could all potentially have problems. A recent ABC Landline report raised this very issue, pointing out that possibly one in every 20 computer chips embedded in farm machinery could be infected with the virus. The problem lies in knowing which ones are likely to be affected. The program raised the even greater issue of so much of our primary industry being critically reliant on exports. What happens if those export markets, for example Asia's cotton mills, are not as prepared for the millennium bug as we are in Australia. The program further claimed that many Asian and emerging markets could be running six months behind Australia in their preparation for the year 2000 problem.

Farmers are encouraged to put together a check list of machinery that might be affected, contact suppliers and if possible get Y2K compliance in writing and call their local farming organisation for further advice as many have put together a range of information that could assist producers. Farmwide has pulled together data on issues that the NFF farm organisations have been working on. A survey was taken of 76 vendors and software developers as to their products' compliance. Fifty per cent of them replied and have provided information. Of the remainder, 10 have some aspects listed under non-compliance, sometimes relating to outdated versions. The results of these surveys are important to all rural software users and can be accessed from Farmwide's web site. They are also putting together a package of information about other farm machinery and equipment and their Y2K compliance. This will be sent to farm organisations and will be available on their web site next week.

Agricultural producers have also been surveyed on their awareness of Y2K issues. While 100 per cent of those surveyed had heard of the millennium bug, only 57 per cent considered the problem to be `somewhat serious' to `very serious'. Most respondents thought it was only likely to be a problem with their home computer or fax. Only 60 per cent said they were checking their equipment in readiness for the year 2000. Given the seriousness of this issue, these figures really are of concern. Individuals really must accept that they could face problems. They need to make sure that their machinery is okay. Software packages that should fix the problem have indeed been developed by several companies and in fact retail for around $150. Time is of the essence and the closer we get, the less likely it will be to be able to resource the necessary professional help with many coming on board at the last minute. The availability of this help and the necessary equipment are becoming more scarce and the cost is likely to increase as the time progresses towards 2000.

There is little point trying to insure against the risk as most insurance companies are withdrawing cover for Y2K compliance. The key really does lie in information and education. This government recognises that this is one of the biggest management issues ever confronted by governments and business. As such it has committed considerable resources to assist Australian businesses and the community to tackle this challenge. The government's strategy is four-pronged, with, firstly, a year 2000 project office which is addressing the readiness of Commonwealth government agencies; secondly, a national strategy aimed at the business community; thirdly, tax deductions for businesses that act now to modify and immunise their equipment against Y2K; and, fourthly, legislation to encourage organisations to disclose the state of their year 2000 readiness.

The government has also set up the toll-free hotline to answer any questions that individuals or businesses might have. Standards Australia has a voluntary register of Y2K compliant companies. The register is based on self-declaration by vendors, suppliers or other organisations that their product or system complies with standards set out in accordance with a document known as MP77. This document is based on the British Standards Institution document which is accepted in Europe as the best definition of compliance currently available.

Most individuals and companies who rely on computer and microchip technology are indeed responsible. Most have made themselves aware of the steps they need to take and have already undertaken them or are arranging to do so. Unfortunately, a major problem for both small and large business in this litigious age is what happens if, in spite of their doing all the accepted and right things, something still goes wrong on 1 January 2000. Many proprietors are nervous of where they stand legally and are simply not prepared to state whether or not their products are Y2K compliant, for fear of litigation in the event of product failure in spite of their best efforts.

This legislation is aimed at protecting the genuine, responsible, conscientious individual or business that has taken every necessary step to immunise their product from the Y2K bug. It protects people from civil liability arising out of the making of a statement that, through no fault of their own, proves incorrect. If we are to encourage people to register their compliance, then we must offer them some form of protection. This matter is now urgent. We are already into February and in just over 10 months we will know the full effect of Y2K. Let us hope that this legislation encourages more people to register their compliance and minimise the fall-out from this potential technological disaster.

This legislation reflects the leadership that the government is showing, not just here in Australia but internationally, in this potentially damaging situation. The legislation will, I believe, assist in improving disclosure and information sharing.