| 2004 Annual Report
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 Schedule P - Report of Fund Counsel 
                  	 The duties and responsibilities of Fund Counsel
                  			are defined by Section 7.01 of the January 1, 1986
                  		- July 1, 1990 Hepatitis C Settlement Agreement. These duties
                  		and responsibilities include: 
 
               			   defending decisions made by the Administrator;  defending and advancing the interests of
               				  the Trust Fund;  receiving financial statements and actuarial
                  					and other reports relating to the financial
                  				sufficiency of the Trust Fund from time to time;
               				  and if deemed necessary or desirable by Fund Counsel, making
                  				applications to courts pursuant to Section 10.01
               			  of the Settlement Agreement. 
 John Callaghan was appointed as Fund Counsel
                  			for the Ontario Class Actions by Order of the Ontario
                  		Superior Court of Justice. Carolyn Horkins, formerly acting
                  		as Fund Counsel for the Ontario Class Actions, was appointed
                  		a Judge of the Ontario Superior Court of Justice on May 3,
                  		2004 . An Order of the Superior Court of Justice is pending
                  		to replace Ms Horkins as Fund Counsel for the Ontario Class
                  		Action by Belinda Bain. Mason Poplaw was appointed Fund Counsel
                  		for the Quebec Class Actions by Order of the Quebec Superior
                  		Court. William Ferguson was appointed Fund Counsel for the
                  		British Columbia Class Actions by Order of the British Columbia
                  		Supreme Court.  During the fiscal period of April 1, 2003
                  		through to March 31, 2004 , Fund Counsel were primarily involved
                  		in defending decisions made by the Administrator on appeals
                  		instituted by claimants. The appeals are conducted either
                  		as References or Arbitrations. Appeals can be conducted in
                  		writing or in person. In each case, written submissions are
                  		delivered to the claimant and the Referee/Arbitrator in advance
                  		of the appeal. When the appeal is conducted in person, Fund
                  		Counsel attends the hearing. The hearing is held where the
                  		claimant resides.  If the appeal is conducted by way of Reference,
                  			the Referee's decision is final and binding within
                  		30 days of the release of the decision unless a claimant
                  		opposes confirmation within the 30 day period. If confirmation
                  		of the Referee's decision is opposed by the claimant, the
                  		Referee's decision is reviewed by the Court.  In addition to the appeals, Fund Counsel
                  		have also handled claims where court approval was necessary
                  		for payments involving minors or a mentally incompetent adult.  Fund Counsel also receive and review financial
                  			statements and other reports relating to the financial
                  		sufficiency of the Trust Fund.  Below is a report of the activities of each
                  			Trust Fund Counsel in relation to the appeals conducted:
                      
 
 
               			  Ontario  Fund CounselOntario Fund Counsel handles appeals from Claimants
                  			in Alberta , Manitoba , Ontario , Saskatchewan , New Brunswick
                  			, Newfoundland , Nova Scotia , Prince Edward Island , Yukon
                  			Territory , The Northwest Territories and Nunavut .
 
 
 
                            	
                            		| Number of total
                            				appeals received from the beginning to March 31, 2004 :
 | 182  |  
                            		| Number of appeals
                            				received from April 1, 2003 to March 31, 2004 :
 | 54  |  
                            		| Number of total
                            				completed appeals (decisions rendered) from the beginning to March 31, 2004 :
 | 94  |  
                            		| Number of completed
                            				appeals (decisions rendered) from April 1, 2003 to March 31, 2004 :
 | 34  |  
                            		| Number of total
                            				withdrawals from the beginning to March 31, 2004 :
 | 22  |  
                            		| Number of withdrawals from April 1, 2003 to March 31, 2004 :
 | 10  |  
                            		| Number of total
                            				rescissions of denial from the beginning to March 31, 2004 :
 | 15  |  
                            		| Number of rescissions
                            				of denial from April 1, 2003 to March 31, 2004 :
 | 5  |  
                            		| Number of pending
                            				appeals as of March 31, 2004 :  | 51  |  
                            		| Number of total
                            				requests for judicial confirmation from the beginning to March 31, 2004 :
 | 14  |  
                            		| Number of requests
                            				for judicial confirmation from April 1, 2003 to March 31, 2004 :
 | 3  |  
                            		| Number of total judicial decisions from the beginning to March 31, 2004 :
 | 8 |  
                            		| Number of judicial
                            				decisions from April 1, 2003 to March 31, 2004 :
 | 1  |  Because Ontario Fund Counsel is involved in appeals
                  			from a number of provinces, there is a significant
                  			amount of travel involved in conducting some of the
                  			appeals.
 
 Ontario Fund Counsel incurred fees of $308,167.50
                  	    plus GST on fees of $ 21,571.73 and disbursements
                  			of $36,178.03 (including $20,722.44 for traveling
                  			expenses such as airfare, hotel, taxi, parking and
                  	    meals together with $6,237.50 for medical experts' fees
                  	    and expenses with respect to preparing reports and testifying
                  	    at hearings) plus GST on disbursements of $2,363.05.
                  			With taxes, the total amount of fees and disbursements incurred
                  	    is $368,280.31.
 
 
Quebec Fund Counsel 
 Particulars of the appeals are as follows:
 
 
 
                               	  
                               		  | Number of total
                                				appeals received from the beginning to March 31, 2004 :
 | 47  |  
                               		  | Number of appeals
                                				received from April 1, 2003 to March 31, 2004 :
 | 12  |  
                               		  | Number of total
                                				completed appeals (decisions
                                				rendered) from the beginning to March 31, 2004 :
 | 27  |  
                               		  | Number of completed
                                				appeals (decisions rendered) from April 1, 2003 to March 31, 2004 :
 | 10  |  
                               		  | Number of total
                                				withdrawals from the beginning to March 31, 2004 :
 | 1  |  
                               		  | Number of withdrawals from April 1, 2003 to March 31, 2004 :
 | 0  |  
                               		  | Number of total
                                				mediated appeals from the beginning to March 31, 2004 :
 | 1  |  
                               		  | Number of mediated
                                				appeals from April 1, 2003 to March 31, 2004
 | 1  |  
                               		  | Number of total
                                				rescissions of denial from the beginning to March 31, 2004 :
 | 2  |  
                               		  | Number of rescissions
                                				of denial from April 1, 2003 to March 31, 2004 :
 | 2  |  
                               		  | Number of pending
                                				appeals as of March 31, 2004
                               				  :  | 16  |  
                               		  | Number of total
                                				requests for judicial confirmation from the beginning to March 31, 2004 :
 | 4  |  
                               		  | Number of requests
                                				for judicial confirmation from April 1, 2003 to March 31, 2004 :
 | 3  |  
                               		  | Number of total
                                				judicial decisions from the beginning to March 31, 2004 :
 | 2  |  
                               		  | Number of judicial
                                				decisions from April 1, 2003 to March 31, 2004 :
 | 1  |  In the next fiscal year, Quebec Fund Counsel
								may need the assistance of medical experts to testify at the in-person
								hearings.
 
 Quebec Fund Counsel has incurred fees of $134,433 and disbursements of $8,929.70.
With taxes, the total amount of fees and disbursements incurred in Quebec is
$153,398.08.
 
 
British Columbia
 Particulars of the appeals are as follows:
 
 
 
                               	  
                               		  | Number of total
                                				appeals received from the beginning to March 31, 2004 :
 | 41  |  
                               		  | Number of appeals
                                				received from April 1, 2003 to March 31, 2004 :
 | 11  |  
                               		  | Number of total
                                				completed appeals (dec rendered) from the beginning to March 31, 2004 :
 | 25  |  
                               		  | Number of completed
                                				appeals (dec rendered) from April 1, 2003 to March 31, 2004 :
 | 8  |  
                               		  | Number of total
                                				withdrawals from the beginning to March 31, 2004 :
 | 5  |  
                               		  | Number of withdrawals from April 1, 2003 to March 31, 2004 :
 | 1  |  
                               		  | Number of total
                                				rescissions from the beginning to March 31, 2004 :
 | 0  |  
                               		  | Number of rescissions from April 1, 2003 to March 31, 2004 :
 | 0  |  
                               		  | Number of total
                                				mediated appeals from the beginning to March 31, 2004 :
 | 0  |  
                               		  | Number of mediated
                                				appeals from April 1, 2003 to March 31, 2004 :
 | 0  |  
                               		  | Number of pending
                               				  appeals as of March 31, 2004 :  | 11  |  
                               		  | Number of total
                                				request for judicial confirmation from the beginning to March 31, 2004 :
 | 8  |  
                               		  | Number of requests
                                				for judicial confirmation from April 1, 2003 to March 31, 2004 :
 | 4  |  
                               		  | Number of total
                                				judicial decisions from the beginning to March 31, 2004 :
 | 7  |  
                               		  | Number of judicial
                                				decisions from April 1, 2003 to March 31, 2004
 | 4  |  B.C. Fund Counsel has incurred fees of $124,930 and
               			      disbursements of $16,588.47 (including $9,550.90 for
               			      travel/transportation). With taxes, the total amount
               			      of fees and disbursements incurred in B.C. is $160,710.61.
 
 Appeals that are pending generally fall into one of
               			      the following categories:
 
 
           			    	     Appeals that have been requested but not yet
                  			    		commenced. Some Arbitrators and Referees
                  			    		schedule a pre-appeal conference call
                  			    		before a date for the appeal is set.
                  			    		This can result in the delay in scheduling
                  			    		a date for the appeal. Often, claimants require additional
                  			    		time to collect evidence before commencing
                  			    		the appeal. Fund Counsel generally consent to a reasonable
           			    		    period of delay for the benefit of the claimant. Appeals that have been commenced
                  			    			but not yet concluded. Appeals are
                  			    		often adjourned to allow the claimant
                  			    		an opportunity to collect and provide
                  			    		additional evidence. Fund Counsel generally
                  			    		consent to these adjournments. The Referee/Arbitrator
                  			    		usually monitors the adjournment to ensure
                  			    		that the appeal resumes in a reasonable period of
           			    		    time. Appeals
                  			    			that have been concluded and the
                  			        	decision from the Arbitrator or Referee
           			        	    is pending.  Pursuant to the Court Approved Protocol for Arbitration/References
           							    and subject to the discretion of the Referees
           	    				    and Arbitrators, Fund Counsel endeavour to conduct the
           	    				    appeals in the simplest, least expensive and most expeditious
           	    				    procedure. When practical and reasonable to do so, evidence
           	    				    from witnesses is introduced in writing or by telephone
           	    				    to eliminate the expense of having the witness testify
           	    				    in person. However, in some appeals, it is preferable
           	    				    to have the witness testify in person and on these occasions
    				    the expense is unavoidable.
 TopFund Counsel anticipates that the time required
                  			to handle appeals during this fiscal year will either
                  		remain the same or increase slightly. This will depend
                  	    	upon the number of appeals which raise complicated medical
                  	    	and other issues and which might require expert evidence. 
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