Businesses display a "worrying level of complacency and a false sense of optimism" about the millennium bug, an Enterprise Ireland survey has shown, according to the Minister of State for Science, Technology and Commerce, Mr Noel Treacy.

Most of the 300 firms surveyed by Lansdowne Market Research ranked the Year 2000 issue after problems such as skill shortages, taxation and competition.

While two out three firms said they had been preparing for the problem for at least a year, most had not spent any "actual time" dealing with it.

"The survey results show that tackling the millennium bug is not a major priority for most small manufacturing companies located outside Dublin," Mr Treacy said, presenting the survey.

The report criticised companies, stating: "Less than one in five have a contingency plan to deal with issues either internally or with their suppliers if they arise." Another finding is that communication between companies and their suppliers on the issue was limited. While 70 per cent of the firms had discussed it with their suppliers, for most this "has gone no further than sending out a letter or questionnaire".

Mr Feargal O Morain, a director of Enterprise Ireland, said it would refocus its Y2K campaign "on the more vulnerable sectors as identified in the survey".