Mr. Bernard Gloster:

Ideally, as the auditor pointed out, we would not need side letters, letters of comfort or anything else. However, the simple reality is that most of these organisations come from an historical context in which they can point out the things that are not in their control and problems they have that they did not create and that affects them signing a service agreement without some level of qualification. That is what led to it. Ideally, that would not be the case. Strengthened service arrangements and grant aid agreements are the only way to go. However, most members of the committee will be familiar with many of these organisations. They have good reputations locally and do good work locally and it is an enormous pressure for us to see how far we can push for compliance when we know they might have weak succession on their boards or poor systems of corporate governance. It is a real balancing act, but for the bigger organisations, we should be getting beyond the notion of letters of comfort or anything else. We have never failed to catch out-----