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ons Sel

e “Year 2000”

Contributing editor
Geof Wheeboright

Acconting to every mayor survey
conducted on the subject over the past
thre years. stnall businesses are the
least prepared of any sector of the
economy to deal with the irapact of the
"Year 2000" computer problem (or
Millenium Bug. as it is also known),
Many apparently assune: that it has
litle or no relevance ta their lives - or
that i1 dues not appear on the desktop
personal computers typically use in
stall businesses.

Neither of those assumptions are
tue, but to understand them you first
have to understand the underlying
problem created by the inability of
some computers ~ along with related
data and software - to properly handle
dates beyond December 31.1999,

ht pues back to the original design of
compoter systems in the middle half of
the century when, in order to save
computer memory space. dates were
stored as six digits rather than eight.
‘This meant, for example that 01/0/69
would be used to represent the dale
January 1, 1909. The last ewo digits in
this form of computer notation
represent the last two digits of the
curteat year. The first two digits of the

sear ane assumed to be "19",

And that’s when: the problem fies. If
the Let two digits of the sea change
from 99 10 00, then the computer
assumes that you are in the sear 1900-
tat the Year 2000, While this might
seem fike a minor pene, it can have
huge consequences,

Suppose, for example, that you have
all sour customer extended warranty
information stored onan older
Conpater systena that suffers bum this
"Year 2000 bug". You will Jikely
calculate the amount of time Jefi on your
customer's warranty by subtracting the
current date from: the date when the
warranty was taken out.

Hf the result is zero or less, then the
waranty has expirer If your computer
believes the cote is In the year 1900
(and the waranty was perhaps taken
out in 1992) then the computer will
calculate that -92 years are lefi on what
should be a ten-year warranty and will
refuse to honour it. ‘The same seenano
can be extended to small insurance
firms (which often base their rates on a
person's age), financial institutions
(which need to be able to calculate
Joans that carry into the next century)
and hundreds of other large and small
business applications.

One major problem facing small

Investing In China

By Kirsty Robertson

businesses. however. is how to pay for
upgrading their computer systems and
data so that they eliminate the Year
2000 bug. This has not been made any
easier by Revenue Canada's traditional
methods of caleulating writeolls for
computer expenditures.

Recognizing the potentially huge
negative impact that this could cause,
Revenue Canada announced in June
that it would provide tay relief for small
and medium-sized businesses 10
address the year 2000) computer
conipliance problem. Under the terms
of the tax relief scheme, accelerated
capital cust allowance (CCA)
deductions of up to $50,000 will be
provided to small and medium-sized
firms for computer hardware and
sofiwan: acquired to replace systems
tha! are not “Year 200) compliant".
The government says that this will aliow
smaller firms to deduct 100 per cent of
elighble expenditures in the year in
which they occur.

According to federal minister of
finance Pau) Martin, many firms have
taken action to ensure that their
computer sysems will be ready for the
year 2000, but a large number stil! have
not addressed this issue. "The year
2000 computer problem presents a
serious economic challenge for the

Camdian economy. Businesses must
act promiplly if they ave going to meet
thal challenge." he said. "That's why
we are providing targeted taa relief 10
help ease the financial constraints
faced by small and medium-sized
businesses in addressing this issue."

Specifically, an accelerated CCA
deduction will be provided to stnall and
medium-sized enterprises on the cost of
computer hardware and software
acquired between January 1, 1998 and
June 30. 1999 in onler to replace
equipment that is not year 2000
compliant. For eligible computer
hanlware and software, accelerated
CCA deductions. combined with the
regilar CCA claims, will result in 100
per cent of the cost of eligible
expenctitures being deductible in the
year of acquisition.

The Chamber will be hostinga "Year
2000" Business Solutions Seminar on
October 26th. A panel of experts
including presentations frum Microsof,
the Royal Bank. BCTel and BC Hydro
will prepare small business owners on
what tes do and what to expect. Call the
Chamber for more information 987-
4488

more attractive to investors. Furthermore,
there is plenty of interest within China

The North Vancouver Chamber of
Commerce opened the doors for local
companies to invest in China and for Chinese
investment in North Vancouver by attending a
trade mission this June.

The President of the Chamber, Judi
Ainsworth, traveled to Dalian City in the
Xigang District with the mayor and two
councilors, and says thal for the most part, her
expectations for the trip were met. "[We]
heard there were good business opportunities
over there," Ainsworth stated, “and if we were
going to facilitate that process on behalf of our
members then this was a good opportunity for

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us to get in on the leading edge."

Ainsworth noted that there is plenty of
opportunity in China, particularly in the
environment, high tech .nd housing areas.
Unlike much of Asia at the present time, the
Chinese economy is very stable, and thus

Bus: 925-5
vee FINANCIAL GROUP INC. Fors 926-926

available for investment in direct venture
partnerships in Canada. This has led to the
Chamber setting up an International Trade
Committee, which will help companies
interested in such proposals.

Because it was the summer, the Chamber
had not yet had the chance to properly set up
any trade links with China. However, in the
fail, the local companies will have a chance to
pursue this interesting line of investment. "I
would hope that there's interest,” says
Ainsworth, "because there's opportunity, and
[ think that's part of the entrepreneurial
spirit."

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