One of the keys to achieving this growth is for BW to ensure transparent and consistent terms and conditions for marinas to connect to our network. Sadly, we all know that Mrs Jackson's tale is not an isolated case.

In 2002, we agreed with BMF a standard tariff for off-line marina connections. In summary, this tariff is at 9% of moorings capacity. While it has been some time since that agreement was reached, we are now determined to roll it out and ensure that ALL marinas connected to our network are offered the opportunity to move to this standard agreement. This will take a few months to achieve, but the process starts now and Mrs Jackson will be one of the first on the list. At the same time, we will be taking firm action against those operators who do not pay us connection fees.

Mrs Jackson, in her letter, also questions if British Waterways Marinas Ltd (BWML) pays business rates or connection fees. Although BW subsidiaries are currently exempt from paying uniform business rates on the canal network, the agreed Marina Business Protocol requires BWML to pay to BW an amount equivalent to the uniform business rates. This amount, payable from the time of BWML being set up in January 2004, has been placed in a ring-fenced fund to be used by BW for marketing initiatives designed to attract visitors and users to the inland waterways. We shall be using part of this fund specifically to deliver this prospectus, and we hope you agree with us that this is a very appropriate use of this money.

From April 2005, BWML is likely to pay business rates in the usual manner, direct to the relevant local authority. Where BWML leases its marina sites from BW, it is at an open market rent which includes the right to connect to our network.

I believe we can achieve all this. I am determined to give it my best shot, and I look forward to delivering it with the help and support of the industry.

Yours faithfully, James Froomberg Commercial Director British Waterways