43. Expenses to be incurred by Canadian Blood Services
("CBS") were approved by the Superior Court of
Justice for Ontario in respect of traceback services by
Order of that Court dated April 13, 2000. The Order provided
for expenses not to exceed $500,000.00 per year.
44. By Order dated April 1, 2001, that Court approved payment
to CBS of the sum of $413,560.00 in respect of costs and
expenses incurred or to be incurred to March 31, 2001.
45. As is described in paragraph 21 above, the Joint Committee
requested Deloitte & Touche to review the expenses incurred
by CBS to March 31, 2001. The report of the cost review
of the expenses of CBS is attached as Schedule
"D".
46. The efficient and effective conduct of tracebacks are
key components of the administration of the Plans. Class
Members have expressed great frustration at the delay occasioned
by the necessity of conducting tracebacks and the time taken
for the tracebacks. Accordingly, the Joint Committee asked
the CBS to provide a budget for the year April 1, 2001 to
March 31, 2002 which provided more resources for the conduct
of tracebacks in the expectation that more tracebacks will
be concluded and in a shorter period of time. Attached hereto
and marked as Schedule "P"*
is a copy of the proposed budget for CBS for the period
April 1, 2001 and March 31, 2002. The budgeted amount is
$1,289,810.41. Also attached as Schedule
"Q" is a letter written on behalf of the Joint
Committee indicating the Joint Committee's recommendation
of this budget subject to the understanding of CBS that
the program will be monitored for efficiency and effectiveness.
Furthermore, it is important that CBS recognize that the
traceback expense is a one-time only expense for the Trust
Fund and should decline sharply after the next 12 to 18
months when most of the Class Members will have qualified
(or not) following the results of a traceback.
*this Schedule was modified as the original version contains
commercially confidential information
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