As described in the annual report, the final stage of the mains water installation is planned to commence early in 2007. As the first stage of the statutory consultation process, the managing agents will shortly be sending out the required notices, which will enable us to go to tender with prospective contractors. When this process is complete there will be a further consultation process, during which a detailed explanation of the installation and of the process for connection to the system by individual leaseholders will be issued. The Board is conscious that there will be a number of leaseholders who have purchased their flats recently and who are not familiar with either the new water installation or of the requirements for connection. The Board is intending to appoint a project manager to assist in the transition from the current system to the new system.

John Sutcliffe

Chairman