Legalize / United Kingdom / Public General Act

Water Act 1989

Type Public General Act

Publication 1989-07-06

Last updated 2026-04-06

State In force

Department Statute Law Database

Source legislation.gov.uk

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(7) For the purposes of any provision of this Act by or under which power is or may be conferred on any person to recover the expenses incurred by that person in doing anything, those expenses shall be assumed to include such sum as may be reasonable in respect of establishment charges or overheads.

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) Where by virtue of any provision of this Act any function of a Minister of the Crown is exercisable concurrently by different Ministers, that function shall also be exercisable jointly by any two or more of those Ministers.

(10) References in this Act to anything done under or for the purposes of any enactment contained in this Act or to anything done by or in relation to any person shall include references to anything which, by virtue of any provision made by or under this Act, has effect as if done under or for the purposes of that enactment or, as the case may be, by or in relation to that person.

Other supplemental provisions

Amendments, transitional provisions, savings and repeals

190

(1) The enactments mentioned in Schedule 25 to this Act shall have effect subject to the amendments there specified (being minor amendments or amendments consequential on the preceding provisions of this Act); and, without prejudice to any power conferred by any other provision of this Act, the Secretary of State and the Minister shall each have power by regulations to make such additional consequential amendments—

(a) of public general enactments not mentioned in that Schedule but passed before, or in the same Session as, this Act; and

(b) of subordinate legislation made before the passing of this Act,

as he considers necessary or expedient by reason of the coming into force of any provision of this Act.

(2) The transitional provisions and savings contained in Schedule 26 to this Act shall have effect; but those provisions and savings are without prejudice to sections 16 and 17 of the Interpretation Act 1978 (effect of repeals) or to the transfer, in accordance with a scheme under Schedule 2 to this Act, of any rights or liabilities saved by virtue of those sections.

(3) The enactments mentioned in Schedule 27 to this Act (which include some which are spent or no longer of practical utility) are hereby repealed to the extent specified in the third column of that Schedule.

(4) Subject to paragraphs 17, 46 and 53 of Schedule 26 to this Act, any reference in that Schedule or in Schedule 27 to this Act to a provision of Schedule 3 to the 1945 Act shall have effect, without prejudice to section 20(2) of the Interpretation Act 1978 (references to enactments to include references to enactments as amended, extended or applied), as including a reference to that provision as applied, with or without modifications, by any local statutory provision.

Local statutory provisions: consequential amendments etc

191

(1) If it appears to the Secretary of State or the Minister to be appropriate to do so—

(a) for the purposes of, or in consequence of, the coming into force of any enactment contained in this Act; or

(b) in consequence of the effect or operation at any time after the transfer date of any such enactment or of anything done under any such enactment,

he may by order repeal, amend or re-enact (with or without modifications) any local statutory provision, including, in the case of an order by virtue of paragraph (b) above, a provision amended by virtue of paragraph (a) above.

(2) An order made by the Secretary of State or the Minister under subsection (1) above may—

(a) make provision applying generally in relation to local statutory provisions of a description specified in the order;

(b) make different provision for different cases, including different provision in relation to different persons, circumstances or localities;

(c) contain such supplemental, consequential and transitional provision as the Secretary of State or, as the case may be, the Minister considers appropriate; and

(d) in the case of an order made after the transfer date, require provision contained in the order to be treated as if it came into force on that date.

(3) The power under this section to repeal or amend a local statutory provision shall include power to modify the effect in relation to any local statutory provision of any provision of Schedule 26 to this Act.

(4) Nothing in any order under this section may abrogate or curtail the effect of so much of any local statutory provision as confers any right of way or confers on or preserves for the public—

(a) any right of enjoyment of air, exercise or recreation on land; or

(b) any right of access to land for the purposes of exercise or recreation.

(5) The power to make an order under subsection (1) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(6) Subject to the provisions of Schedule 26 to this Act, nothing in any local statutory provision passed or made before the transfer date shall be construed as relieving any water undertaker or sewerage undertaker from any liability arising by virtue of this Act in respect of any act or omission occurring on or after that date.

Application to Crown land etc

192

(1) Subject to the following provisions of this section, the provisions of this Act shall have effect in relation to land in which there is a Crown or Duchy interest as they have effect in relation to land in which there is no such interest.

(2) Subject to subsection (3) below, a power which is conferred by or under this Act in relation to land shall be exercisable in relation to any land in which there is a Crown or Duchy interest only with the consent of the appropriate authority.

(3) Subsection (2) above shall not require any consent to be given—

(a) for the exercise of any power in relation to any land in which there is a Crown or Duchy interest to the extent that that power would be so exercisable apart from subsection (1) above;

(b) for the imposition in relation to any premises in which there is a Crown or Duchy interest of any charges for a service provided by a water undertaker or sewerage undertaker in the course of carrying out its functions; . . .

but nothing in this section shall be construed as authorising the Authority to require the Crown to make any payment to the Authority in respect of any premises.

(4) A consent given for the purposes of subsection (2) above may be given on such financial and other conditions as the appropriate authority giving the consent may consider appropriate.

(5) In this section—

“the appropriate authority” has the same meaning as in section 293 of the Town and Country Planning Act 1990; and

“Crown or Duchy interest” means an interest belonging to Her Majesty in right of the Crown or of the Duchy of Lancaster, or to the Duchy of Cornwall, or belonging to a government department or held in trust for Her Majesty for the purposes of a government department;

and the provisions of subsection (3) of the said section 293 as to the determination of questions shall apply for the purposes of this section.

Application to Isles of Scilly

193

(1) Subject to the provisions of any order under this section, nothing in this Act shall require or authorise any function, duty or power to be carried out, performed or exercised in relation to the Isles of Scilly by the Authority, a water undertaker or sewerage undertaker; and references in the preceding provisions of this Act to England and Wales shall not include references to those Isles.

(2) The Secretary of State may, on the application of the Council of the Isles of Scilly, by order make provision with respect to the carrying out in those Isles of functions falling under this Act to be carried out in relation to other parts of England and Wales by the Authority, by a water undertaker or by a sewerage undertaker; and, without prejudice to the generality of that power, an order under this section may apply any provision of this Act in relation to the Isles of Scilly with or without modifications.

(3) The power of the Secretary of State to make an order under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament; and such an order may—

(a) make different provision for different cases, including different provision in relation to different persons, circumstances or localities; and

(b) contain such supplemental, consequential and transitional provision as the Secretary of State considers appropriate, including provision saving provision repealed by or under any enactment.

Short title, commencement and extent

194

(1) This Act may be cited as the Water Act 1989.

(2) This section, so much of this Act as confers any power to make subordinate legislation or makes provision with respect to the exercise of any such power and sections 29 and 30 above shall come into force on the passing of this Act.

(3) The following provisions of this Act, except in so far as they are already in force in accordance with subsection (2) above, shall come into force on the transfer date, namely—

(a) sections 15 to 28 (including Schedules 5 and 6), section 31 and sections 33 to 36;

(b) Chapters II to V of Part II, except section 79;

(d) Parts III and IV, except so far as relating to the amendment, in Schedule 17, to the Salmon and Freshwater Fisheries (Protection) (Scotland) Act 1951;

(e) Part V, except so far as relating to sections 33, 47 and 48 of the Control of Pollution Act 1974;

(f) Schedule 26 and section 190 so far as relating to that Schedule; and

(g) Part I of Schedule 27 and section 190 so far as relating to that Part of that Schedule.

(4) The provisions of this Act not brought into force on the passing of this Act or on the transfer date by subsection (2) or (3) above shall come into force on such day (whether that date or a day before or after that date) as the Secretary of State may by order made by statutory instrument appoint; and different days may be so appointed for different provisions or for different purposes.

(5) An order made by the Secretary of State under subsection (4) above may make such transitional provisions and savings in connection with the bringing into force by that order of any provision of this Act as the Secretary of State considers appropriate.

(6) This section and the following provisions of this Act shall extend to the whole of the United Kingdom, namely—

(a) Schedules 2 and 5 and sections 4, 13 and 23 so far as relating to any scheme under either of those Schedules;

(b) section 95; and

(c) any amendment or repeal by this Act of any provision contained in the Parliamentary Commissioner Act 1967, the Capital Allowances Act 1968, the House of Commons Disqualification Act 1975 or the Northern Ireland Assembly Disqualification Act 1975.

(7) Subject to any enactment by virtue of which a provision of this Act has effect in relation to any part of the territorial sea adjacent to or to any part of Great Britain, the following provisions of this Act shall extend to Great Britain only, namely—

(a) section 136 and Schedule 15 so far as they amend section 32 of the Land Drainage Act 1976;

(b) subsections (1) to (4), (6) and (7) of section 141 and, so far as they amend the Diseases of Fish Act 1937 or section 39 of the Salmon and Freshwater Fisheries Act 1975 (border rivers), subsection (5) of the said section 141 and Schedule 17;

(d) section 190 and Schedule 25 so far as they relate to the Agriculture Act 1970, the Health and Safety at Work etc. Act 1974 . . .; and

(e) section 190 and Schedule 27 so far as they relate to the Diseases of Fish Act 1937, the Border Rivers (Prevention of Pollution) Act 1951, section 126 of the Water Resources Act 1963 (border rivers), section 39(4) of the Salmon and Freshwater Fisheries Act 1975 and the Diseases of Fish Act 1983.

(8) The following provisions of this Act shall extend to Scotland only (subject, in the case of paragraph (a) below, to the application of sections 21 and 22 of the Salmon and Freshwater Fisheries (Protection) (Scotland) Act 1951 to any provision of that Act), namely—

(a) subsection (5) of section 141 above and Schedule 17 to this Act, so far as they amend section 15 of the Salmon and Freshwater Fisheries (Protection) (Scotland) Act 1951;

(b) Part V;

(c) section 190 and Schedule 25 so far as they amend the Public Health (Scotland) Act 1897, the Agricultural Holdings (Scotland) Act 1949, the Rivers (Prevention of Pollution) (Scotland) Act 1951, the Valuation and Rating (Scotland) Act 1956 and the Water (Scotland) Act 1980;

(d) section 190 and Part I of Schedule 27 so far as they relate to section 104 of the Control of Pollution Act 1974.

(9) Subject to subsections (6) to (8) above, to any enactment by virtue of which a provision of this Act has effect in relation to any part of the territorial sea adjacent to England and Wales and to the application of section 39(1) of the Salmon and Freshwater Fisheries Act 1975 (border rivers) to any provision of this Act in so far as it amends or repeals an enactment contained in the said Act of 1975, this Act shall extend to England and Wales only.

SCHEDULE 1

Part I — Organisation and Proceedings etc. of Authority

Membership

1

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Remuneration, pensions etc.

2

(1) The Authority shall pay to its members such remuneration, and such travelling and other allowances, as may be determined by the appropriate Minister.

(2) The Authority shall, if so required by the appropriate Minister, pay such pension, allowances or gratuities to or in respect of a person who has been or is a member, or such payments towards provision for the payment of a pension, allowances or gratuities to or in respect of such a person, as may be determined by the appropriate Minister.

(3) If, when any member ceases to hold office, the appropriate Minister determines that there are special circumstances which make it right that that member should receive compensation, the Authority shall pay to him a sum by way of compensation of such amount as may be so determined.

(4) The approval of the Treasury shall be required for the making of a determination under this paragraph.

Staff

3

(1) The Authority may, with the approval of the Secretary of State as to terms and conditions of service, appoint such officers and employees as it may determine.

(2) No member or other person shall be appointed by the Authority to act as chief executive of the Authority unless the Secretary of State has consented to the appointment of that person.

(3) The Authority may—

(a) pay such pensions, allowances or gratuities to or in respect of any persons who have been or are its officers or employees as it may, with the approval of the Secretary of State, determine;

(b) make such payments as it may so determine towards provision for the payment of pensions, allowances or gratuities to or in respect of any such persons;

(c) provide and maintain such schemes as it may so determine (whether contributory or not) for the payment of pensions, allowances or gratuities to or in respect of any such persons.

(4) Any reference in sub-paragraph (3) above to pensions, allowances or gratuities to or in respect of any such persons as are mentioned in that sub-paragraph includes a reference to pensions, allowances or gratuities by way of compensation to or in respect of any of the Authority’s officers or employees who suffer loss of office or employment or loss or diminution of emoluments.

(5) If any person—

(a) on ceasing to be an officer or employee of the Authority becomes a member; and

(b) was by reference to his office or employment by the Authority a participant in a pension scheme maintained by the Authority for the benefit of any of its officers or employees,

the Authority may, with the approval of the Secretary of State, make provision for him to continue to participate in that scheme, on such terms and conditions as it may with the consent of the Secretary of State determine, as if his service as a member were service as an officer or employee of the Authority; and any such provision shall be without prejudice to paragraph 2 above.

(6) The consent of the Treasury shall be required for the giving of an approval under this paragraph.

Proceedings of Authority

4

Subject to the following provisions of this Schedule and to section 136(3) and (4) of this Act, the Authority may regulate its own procedure (including quorum).

Delegation of powers

5

Subject to section 136(3) and (4) of this Act, anything authorised or required by or under any enactment to be done by the Authority may be done by any member, officer or employee of the Authority who has been authorised for the purpose, whether generally or specially, by the Authority or may be done by any committee or sub-committee of the Authority which has been so authorised.

Interests of members

6

(1) A member who is in any way directly or indirectly interested in any matter that is brought up for consideration at a meeting of the Authority shall disclose the nature of his interest to the meeting; and, where such a disclosure is made, the disclosure shall be recorded in the minutes of the meeting and the member shall not take any part in any deliberation or decision of the Authority, or of any of its committees or sub-committees, with respect to that matter.

(2) For the purposes of sub-paragraph (1) above, a general notification given at a meeting of the Authority by a member to the effect that he is a member of a specified company or firm and is to be regarded as interested in any matter involving that company or firm shall be regarded as a sufficient disclosure of his interest in relation to any such matter.

(3) A member need not attend in person at a meeting of the Authority in order to make a disclosure which he is required to make under this paragraph if he takes reasonable steps to secure that the disclosure is made by a notice which is taken into consideration and read at the meeting.

(4) The Secretary of State may, subject to such conditions as he considers appropriate, remove any disability imposed by virtue of this paragraph in any case where the number of members of the Authority disabled by virtue of this paragraph at any one time would be so great a proportion of the whole as to impede the transaction of business.

(5) The power of the Secretary of State under sub-paragraph (4) above includes power to remove, either indefinitely or for any period, a disability which would otherwise attach to any member, or members of any description, by reason of such interests, and in respect of such matters, as may be specified or described by the Secretary of State.

(6) Nothing in this paragraph precludes any member from taking part in the consideration or discussion of, or voting on, any question whether an application should be made to the Secretary of State for the exercise of the power conferred by sub-paragraph (4) above.

(7) In this paragraph references to a meeting of the Authority include references to a meeting of any of its committees or sub-committees.

Vacancies and defective appointments

7

The validity of any proceedings of the Authority shall not be affected by a vacancy amongst the members or by a defect in the appointment of a member.

Minutes

8

(1) Minutes shall be kept of proceedings of the Authority, of its committees and of its sub-committees.

(2) Minutes of any such proceedings shall be evidence of those proceedings if they are signed by a person purporting to have acted as chairman of the proceedings to which the minutes relate or of any subsequent proceedings in the course of which the minutes were approved as a correct record.

(3) Where minutes of any such proceedings have been signed as mentioned in sub-paragraph (2) above, those proceedings shall, unless the contrary is shown, be deemed to have been regularly convened and constituted.

Application of seal and proof of instruments

9

(1) The application of the seal of the Authority shall be authenticated by the signature of any member, officer or employee of the Authority who has been authorised for the purpose, whether generally or specially, by the Authority.

(2) In this paragraph the reference to the signature of a person includes a facsimile of a signature by whatever process reproduced; and, in paragraph 10 below, the word “signed” shall be construed accordingly.

Documents served etc. by the Authority

10

(1) Any document which the Authority is authorised or required by or under any enactment to serve, make or issue may be signed on behalf of the Authority by any member, officer or employee of the Authority who has been authorised for the purpose, whether generally or specially, by the Authority.

(2) Every document purporting to be an instrument made or issued by or on behalf of the Authority and to be duly executed under the seal of the Authority, or to be signed or executed by a person authorised by the Authority for the purpose, shall be received in evidence and be treated, without further proof, as being so made or issued unless the contrary is shown.

The Parliamentary Commissioner

11

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The Local Commissioners

12

In section 25(1) of the Local Government Act 1974 (authorities subject to investigation by Local Commissioners), for paragraph (d) there shall be substituted the following paragraph—

(d) in relation to the flood defence functions of the National Rivers Authority (that is to say, its functions by virtue of Chapter III of Part III of the Water Act 1989, including all its functions under the Land Drainage Act 1976), the National Rivers Authority and any regional flood defence committee.

Parliamentary disqualification etc.

13

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Interpretation

14

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Part II

General financial duties

15

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Financial duties in relation to flood defence revenue

16

(1) Revenue raised by the Authority in a local flood defence district—

(a) under or by virtue of sections 45 to 49 of the Land Drainage Act 1976 (revenue raised from local authorities) or any regulations under section 74 of the Local Government Finance Act 1988 (power to issue levies);

(b) by contributions required under section 84(1) of the said Act of 1976 (contributions from internal drainage boards); or

shall, except for any amount falling within sub-paragraph (2) below, be spent only in the carrying out of the Authority’s flood defence functions in or for the benefit of that district.

(2) An amount falls within this sub-paragraph if it is an amount which the Authority considers it appropriate—

(a) to set aside towards research or related activities or towards meeting the Authority’s administrative expenses; or

(b) to be paid by way of contribution towards expenses incurred by the Authority or any regional flood defence committee under arrangements made for the purposes of section 136(3)(b) of this Act.

(3) Any amount specified in a resolution under section 86(1) of the Land Drainage Act 1976 in relation to any local flood defence district (allocation of revenue in lieu of contributions) shall be treated for the purposes of sub-paragraph (1) above as if it were revenue actually raised by contributions required under section 84(1) of that Act.

(4) Any sums held by the Authority by virtue of any transfer of property, rights or liabilities from a water authority in accordance with a scheme under Schedule 2 to this Act shall, in so far as those sums represent amounts which the water authority was required by virtue of paragraph 31 of Schedule 3 to the 1973 Act to spend only in the discharge of their land drainage functions in or for the benefit of a particular local land drainage district, be treated for the purposes of this paragraph as revenue raised by the Authority as mentioned in sub-paragraph (1) above in or for the benefit of the corresponding local flood defence district.

(5) In this paragraph—

“flood defence functions”, in relation the Authority, means its functions by virtue of Chapter III of Part III of this Act, including all its functions under the Land Drainage Act 1976;

“local flood defence district” has the same meaning as in the said Act of 1976;

and for the purposes of this paragraph so much of a regional flood defence area as is an area in relation to which no local flood defence scheme is in force shall be treated as a single local flood defence district.

Grants to the Authority

17

(1) The Secretary of State may, with the approval of the Treasury, make to the Authority out of money provided by Parliament grants of such amounts as he thinks fit.

(2) The payment by the Secretary of State of a grant under this paragraph shall be on such terms as he may, with the approval of the Treasury, provide.

(3) The Secretary of State shall—

(a) prepare in respect of each financial year an account of the sums paid by him to the Authority under this paragraph; and

(b) before the end of September in the following financial year send that account to the Comptroller and Auditor General;

and the form of the account and the manner of preparing it shall be such as the Treasury may direct.

(4) The Comptroller and Auditor General shall examine, certify and report on each account sent to him under this paragraph and shall lay copies of it and of his report before each House of Parliament.

Borrowing

18

(1) The Authority shall be entitled to borrow in accordance with the following provisions of this paragraph but not otherwise.

(2) Subject to sub-paragraph (4) below, the Authority may, with the consent of the Secretary of State or the Minister and with the approval of the Treasury, borrow temporarily in sterling, by way of overdraft or otherwise, from a person other than the Secretary of State or the Minister, such sums as it may require for meeting its obligations and carrying out its functions.

(3) Subject to sub-paragraph (4) below, the Authority may borrow, otherwise than by way of temporary loan, such sums in sterling from the Secretary of State or the Minister as it may require for capital purposes in connection with the carrying out of its flood defence functions.

(4) The aggregate amount outstanding in respect of the principal of sums borrowed under this paragraph by the Authority shall not at any time exceed £100 million or such greater sum, not exceeding £160 million, as the relevant Ministers may specify by order made by statutory instrument.

(5) No order shall be made under sub-paragraph (4) above unless a draft of the order has been laid before the House of Commons and has been approved by a resolution of that House.

(6) In this paragraph “flood defence functions” has the same meaning as in paragraph 16 above.

Loans to the Authority

19

(1) The Secretary of State and the Minister shall each have power, with the approval of the Treasury, to lend any sums to the Authority which the Authority has power to borrow under paragraph 18(3) above.

(2) Any loan made by the Secretary of State or the Minister under this paragraph shall be repaid to him at such times and by such methods, and interest on the loan shall be paid to him at such rates and at such times, as the Secretary of State or, as the case may be, the Minister may with the approval of the Treasury from time to time determine.

(3) Any sums required by the Secretary of State or the Minister for making a loan under this paragraph shall be paid out of money provided by Parliament; and any sums received by the Secretary of State or the Minister in pursuance of sub-paragraph (2) above shall be paid into the Consolidated Fund.

(4) The Secretary of State and the Minister shall each—

(a) prepare in respect of each financial year an account of the sums lent by him to the Authority under this paragraph; and

(b) before the end of September in the following financial year send that account to the Comptroller and Auditor General;

and the form of the account and the manner of preparing it shall be such as the Treasury may direct.

(5) The Comptroller and Auditor General shall examine, certify and report on each account sent to him under this paragraph and shall lay copies of it and of his report before each House of Parliament.

Guarantees

20

The Secretary of State or the Minister may, with the consent of the Treasury, guarantee, in such manner and on such conditions as he may think fit, the repayment of the principal of, the payment of interest on and the discharge of any other financial obligation in connection with any sum which the Authority borrows from any person.

Accounts

21

(1) It shall be the duty of the Authority—

(a) to keep proper accounts and proper records in relation to the accounts; and

(b) to prepare in respect of each accounting year a statement of accounts giving a true and fair view of the state of affairs and the income and expenditure of the Authority.

(2) Every statement of accounts prepared by the Authority in accordance with this paragraph shall comply with any requirement which the relevant Ministers have, with the consent of the Treasury, notified in writing to the Authority and which relates to any of the following matters, namely—

(a) the information to be contained in the statement;

(b) the manner in which that information is to be presented;

and such a requirement may impose an obligation on the Authority to prepare accounts in respect of the financial year current when section 1 of this Act comes into force on such assumptions as may be specified in the requirement.

(3) Subject to sub-paragraph (4) below, in this paragraph and paragraph 22 below “accounting year”, in relation to the Authority, means a financial year.

(4) If the Secretary of State so directs in relation to any accounting year of the Authority, that accounting year shall end with such date other than the next 31st March as may be specified in the direction; and, where the Secretary of State has given such a direction, the following accounting year shall begin with the day after the date so specified and, subject to any further direction under this sub-paragraph, shall end with the next 31st March.

Audit

22

(1) The accounts of the Authority, shall be audited by auditors appointed for each accounting year by the Secretary of State.

(2) A person shall not be qualified for appointment for the purposes of sub-paragraph (1) above unless he is—

(a) a member of a body of accountants established in the United Kingdom and recognised for the purposes of section 389(1)(a) of the Companies Act 1985; or

(b) a member of the Chartered Institute of Public Finance and Accountancy;

but a firm may be so appointed if each of its members is qualified to be so appointed.

(3) A copy of any accounts of the Authority which are audited under sub-paragraph (1) above and of the report made on those accounts by the auditors shall be sent to the Secretary of State and to the Minister as soon as reasonably practicable after the report is received by the Authority; and the Secretary of State shall lay a copy of any accounts or report sent to him under this sub-paragraph before Parliament.

(4) The Comptroller and Auditor General shall be entitled to inspect the contents of all books, papers and other records of the Authority relating to, or to matters dealt with in, the accounts required to be kept by virtue of paragraph 21 above; and, accordingly, section 6 of the National Audit Act 1983 (examinations of economy, efficiency and effectiveness) shall apply to the Authority.

(5) In this paragraph “accounts”, in relation to the Authority, includes any statement under paragraph 21 above.

Meaning of “the relevant Ministers”

23

In this Part of this Schedule “the relevant Ministers” means the Secretary of State and the Minister, acting jointly.

SCHEDULE 2

Making and modification of schemes

1

(1) Each of the water authorities shall make a scheme under this Schedule for the division of all their property, rights and liabilities between their successor company and the Authority.

(2) Where a scheme under this Schedule is made by a water authority it shall not take effect unless it is approved by the Secretary of State.

(3) Where a scheme under this Schedule is submitted to the Secretary of State for his approval, he may modify the scheme before approving it.

(4) If—

(a) a water authority fail, before such time as may be notified by the Secretary of State to that water authority as the latest time for the submission of a scheme under this Schedule, to submit such a scheme for the approval of the Secretary of State; or

(b) the Secretary of State decides not to approve a scheme that has been submitted to him by a water authority (either with or without modifications),

the Secretary of State may himself make a scheme under this Schedule for the division of that water authority’s property, rights and liabilities between the water authority’s successor company and the Authority.

(5) If at any time after a scheme under this Schedule has come into force in relation to the property, rights and liabilities of any water authority the Secretary of State considers it appropriate to do so and either—

(a) the water authority’s successor company has consented to the making of the order; or

(b) that company is for the time being wholly owned by the Crown and has been consulted by the Secretary of State,

the Secretary of State may by order provide that that scheme shall for all purposes be deemed to have come into force with such modifications as may be specified in the order.

(6) An order under sub-paragraph (5) above may make, with effect from the coming into force of the scheme to which it relates, any such provision as could have been made by the scheme and, in connection with giving effect to that provision from that time, may contain such supplemental, consequential and transitional provision as the Secretary of State considers appropriate.

(7) In determining whether and in what manner to exercise any power conferred on him by this paragraph the Secretary of State shall have regard to the need to ensure—

(a) that any division of property, rights and liabilities between a successor company and the Authority which is effected under this Schedule allocates property, rights and liabilities to them in such proportions as appear to him to be appropriate in the context of the different functions which will, by virtue of this Act, be carried out by the company and the Authority; and

(b) that the scheme contains all such provision as he considers should take effect on the transfer date in relation to the property, rights or liabilities allocated by the scheme as provision contained in arrangements under section 126 of this Act.

(8) It shall be the duty of a water authority to provide the Secretary of State with all such information and other assistance as he may reasonably require for the purposes of, or in connection with, the exercise of any power conferred on him by this paragraph.

Transfers by scheme

2

(1) Where a scheme under this Schedule for the division of a water authority’s property, rights and liabilities comes into force on the transfer date, this paragraph shall have effect on that date so as, in accordance with the scheme’s provisions and without further assurance—

(a) to transfer to the Authority such of the property, rights and liabilities as are allocated to the Authority for the purposes of the division made by the scheme; and

(b) to transfer to the water authority’s successor company the remainder of the property, rights and liabilities;

and accordingly the said remainder shall be treated for the purposes of this Act as allocated to that company.

(2) For the purpose of making a division of any property, rights or liabilities between a successor company and the Authority the provisions of a scheme under this Schedule may—

(a) allocate to the Authority such property, rights and liabilities to which the water authority may become entitled or subject after the making of the scheme and before the transfer date as may be described in the scheme;

(b) create for the successor company or the Authority an interest in or right over property transferred in accordance with the scheme to the other;

(d) in connection with any provision made by virtue of paragraph (b) or (c) above, make incidental provision as to the interests, rights and liabilities of other persons with respect to the subject-matter of the division.

(3) The property, rights and liabilities of a water authority that shall be capable of being transferred in accordance with a scheme under this Schedule shall include—

(a) property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the water authority;

(b) property situated anywhere in the United Kingdom or elsewhere;

(i) such rights and liabilities as may arise after the transfer date by virtue of enactments amended or repealed by this Act and, in pursuance of provision contained in Schedule 26 to this Act, may be the subject of an allocation made by a scheme under this Schedule; and

(ii) other rights and liabilities under enactments which are amended or repealed by this Act subject to a saving;

(d) rights and liabilities under the law of any part of the United Kingdom or of any country or territory outside the United Kingdom.

(4) The rights and liabilities that may be created by virtue of paragraph (c) of sub-paragraph (2) above shall include rights and liabilities which, with effect from the transfer date, shall have effect as if contained in arrangements under section 126 of this Act; and the provision that may be made by virtue of that paragraph includes—

(a) provision for treating any person who is entitled by virtue of a scheme under this Schedule to possession of a document as having given another person an acknowledgement in writing of the right of that other person to the production of the document and to delivery of copies thereof; and

(b) provision applying section 64 of the Law of Property Act 1925 (production and safe custody of documents) in relation to any case in relation to which provision falling within paragraph (a) above has effect.

(5) For the avoidance of doubt, it is hereby declared that the transfers authorised by paragraph (a) of sub-paragraph (3) above include transfers which, by virtue of that paragraph, are to take effect as if there were no such contravention, liability or interference with any interest or right as there would be, in the case of a transfer or assignment otherwise than by virtue of this Schedule, by reason of any provision having effect (whether under any enactment or agreement or otherwise) in relation to the terms on which a water authority is entitled or subject to the property, right or liability in question.

(6) Where apart from this sub-paragraph any person would have power, in consequence of anything done or likely to be done by or under this Act, to terminate or modify an interest or right which is vested in a water authority at the passing of this Act, then—

(a) for the purposes of the transfer of the interest or right in accordance with a scheme under this Schedule, that power shall not be exercisable in relation to that interest or right at any time before its transfer in accordance with such a scheme; and

(b) without prejudice to the preceding provisions of this paragraph or to paragraph 3(2)(a) below, that power shall be exercisable in relation to the interest or right after its transfer only in so far as the scheme provides for it to be transferred subject to the power.

Supplemental provisions of schemes

3

(1) A scheme under this Schedule may contain supplemental, consequential and transitional provision for the purposes of, or in connection with, the division or any other provision made by the scheme.

(2) Without prejudice to the generality of sub-paragraph (1) above, a scheme under this Schedule may provide—

(a) that for purposes connected with any transfers made in accordance with the scheme (including the transfer of rights and liabilities under an enactment) a body to which anything is transferred in accordance with the scheme is to be treated as the same person in law as the water authority from which it is transferred;

(b) that, so far as may be necessary for the purposes of or in connection with any such transfers, agreements made, transactions effected and other things done by or in relation to a water authority from which anything is transferred in accordance with the scheme are to be treated as made, effected or done by or in relation to the body to which it is transferred;

(c) that, so far as may be necessary for the purposes of or in connection with any such transfers, references in any agreement (whether or not in writing) or in any deed, bond, instrument or other document to, or to any member or officer of, a water authority from which anything is transferred in accordance with the scheme are to have effect with such modifications as are specified in the scheme;

(d) that proceedings commenced by or against a water authority are to be continued by or against the water authority’s successor company or the Authority;

(e) that the effect of any transfer under the scheme in relation to contracts of employment with a water authority is not to be to terminate any of those contracts but is to be that periods of employment with that authority are to count for all purposes as periods of employment with the water authority’s successor company or, as the case may require, with the Authority;

(f) that disputes as to the effect of the scheme between the Authority and the successor company to which property, rights and liabilities are transferred in accordance with the scheme are to be referred to such arbitration as may be specified in or determined under the scheme;

(g) that determinations on such arbitrations and certificates given jointly by the Authority and a successor company as to the effect of the scheme as between the Authority and that company are to be conclusive for all purposes.

Duties of water authorities after the scheme comes into force

4

(1) A scheme under this Schedule may provide for the imposition of duties on the water authority from which transfers are made by virtue of the scheme, and on the successor company of that authority and on the Authority, to take all such steps as may be requisite to secure that the vesting in the successor company or the Authority, by virtue of the scheme, of any foreign property, right or liability is effective under the relevant foreign law.

(2) The provisions of a scheme under this Schedule may require a water authority to comply with any directions of their successor company or of the Authority in performing any duty imposed on the water authority by virtue of a provision included in the scheme under sub-paragraph (1) above.

(3) A scheme under this Schedule may provide that, until the vesting of any foreign property, right or liability of a water authority in the successor company of that authority or in the Authority is effective under the relevant foreign law, it shall be the duty of the water authority to hold that property or right for the benefit of, or to discharge that liability on behalf of, the successor company or, as the case may be, the Authority.

(4) Nothing in any provision included by virtue of this paragraph in a scheme under this Schedule shall be taken as prejudicing the effect under the law of any part of the United Kingdom of the vesting by virtue of the scheme in a successor company, or in the Authority, of any foreign property, right or liability.

(5) A water authority shall have all such powers as may be requisite for the performance of any duty imposed on them by any provision included by virtue of this paragraph in a scheme under this Schedule; but such a scheme may require a successor company or the Authority to act on behalf of a water authority (so far as possible) for the purposes of, or in connection with, the performance of any such duty.

(6) A scheme under this Schedule may provide that any foreign property, rights or liabilities that are acquired or incurred by a water authority after the scheme comes into force are immediately to become property, rights or liabilities of the water authority’s successor company or of the Authority; and such a scheme may make the same provision in relation to any such property, rights or liabilities as can be made, by virtue of the preceding provisions of this paragraph, in relation to foreign property, rights and liabilities vested in a water authority when the scheme comes into force.

(7) References in this paragraph to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have to be determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

(8) Any expenses incurred by a water authority in consequence of any provision included by virtue of this paragraph in a scheme under this Schedule shall be met, in such proportions as may be determined by or under the scheme, by the water authority’s successor company and the Authority.

SCHEDULE 3

Remuneration, pensions etc.

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Staff

2

(1) The Director may, with the approval of the Treasury as to numbers and terms and conditions of service, appoint such staff as he may determine.

(2) Anything authorised or required by or under any enactment to be done by the Director may be done by any member of the staff of the Director who has been authorised for the purpose, whether generally or specially, by the Director.

Expenses of the Director and his staff

3

There shall be paid out of money provided by Parliament—

(a) the remuneration of, and any travelling or other allowances payable under this Act to, the Director and any staff of the Director;

(b) any sums payable under this Act to or in respect of the Director; and

Official seal

4

The Director shall have an official seal for the authentication of documents required for the purposes of his functions.

Documentary evidence

5

The Documentary Evidence Act 1868 shall have effect as if the Director were included in the first column of the Schedule to that Act, as if the Director and any person authorised to act on behalf of the Director were mentioned in the second column of that Schedule, and as if the regulations referred to in that Act included any document issued by the Director or by any such person.

The Parliamentary Commissioner

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Parliamentary disqualification etc.

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 4

Sub-committees

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Remuneration, pensions etc. of the chairman of a customer service committee

2

(1) There shall be paid to the chairman of a customer service committee such remuneration, and such travelling and other allowances, as the Director may determine.

(2) There shall be paid such pension, allowances or gratuities to or in respect of a person who has held or holds office as the chairman of a customer service committee, or such payments towards provision for the payment of a pension, allowances or gratuities to or in respect of such a person, as may be determined by the Director.

(3) If, when any person ceases to hold office as such a chairman, the Director determines that there are special circumstances which make it right that that person should receive compensation, there may be paid to him a sum by way of compensation of such amount as may be determined by the Director.

(4) The approval of the Treasury shall be required for the making of a determination under this paragraph.

Expenses of other members of a customer service committee etc.

3

Subject to paragraph 2 above, neither the members of a customer service committee nor the members of any sub-committee of any such committee shall be paid any sums by the Director for or in respect of their services except—

(a) in the case of services as a member of a customer service committee, sums reimbursing the member for loss of remuneration, for travelling expenses or for any other out-of-pocket expenses; and

(b) in the case of services as a member of a sub-committee of a customer service committee, sums reimbursing the member for travelling expenses or for any other out-of-pocket expenses which do not relate to loss of remuneration.

Staff

4

(1) The Director may, with the approval of the Treasury as to numbers and terms and conditions of service, appoint such officers and employees of a customer service committee or of any sub-committee of a customer service committee as he may determine.

(2) Anything authorised or required by or under this Act to be done by a customer service committee may be done by any of the officers or employees of the committee, or of any of its sub-committees, who has been authorised for the purpose, whether generally or specially, by the committee or, in accordance with the terms of its appointment, by a sub-committee of the committee.

Financial provisions

5

(1) The following shall be paid by the Director out of money provided by Parliament, that is to say—

(a) any sums required to be paid to or in respect of any person under paragraph 2 or 3 above; and

(b) any expenses incurred by a customer service committee in accordance with any statement approved under sub-paragraph (3) below.

(2) A customer service committee shall prepare in respect of each financial year a statement of the expenses which it expects to incur in respect of that year—

(a) in relation to officers and employees of the committee and its sub-committees; or

(b) otherwise for the purposes of, or in connection with, the carrying out of its functions;

and that statement shall be sent to the Director, in the case of the statement in respect of the financial year current at the establishment of the committee, as soon as practicable after the establishment of the committee and, in any other case, before the beginning of the financial year to which the statement relates.

(3) The Director shall consider any statement sent to him under sub-paragraph (2) above and shall either approve the statement or approve it with such modifications as he considers appropriate.

Parliamentary disqualification etc.

6

In the House of Commons Disqualification Act 1975, in Part III of Schedule 1 (other disqualifying offices), there shall be inserted (at the appropriate place) the following entry—

Chairman of a customer service committee established under section 6 of the Water Act 1989.

;

and the like insertion shall be made in Part III of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975.

SCHEDULE 5

Cases where Schedule applies

1

(1) This Schedule shall apply in each of the cases specified in sub-paragraphs (2) and (3) below.

(2) The first case in which this Schedule applies is where—

(a) the Secretary of State or the Director is proposing to make an appointment or variation to which section 12 of this Act applies; and

(b) by virtue of that appointment a company (“the new appointee”) will hold an appointment as the water undertaker or sewerage undertaker for an area which is or includes the whole or any part of the area for which until the relevant date another company (“the existing appointee”) holds an appointment as the water undertaker or, as the case may be, sewerage undertaker.

(3) The second case in which this Schedule applies is where—

(a) the High Court has made a special administration order in relation to any company (“the existing appointee”); and

(b) it is proposed that on and after the relevant date another company (“the new appointee”) should, without any such appointment or variation as is mentioned in sub-paragraph (2) above having been made, hold an appointment as water undertaker or sewerage undertaker for an area which is or includes the whole or any part of the area for which until that date the existing appointee holds an appointment as water undertaker or, as the case may be, sewerage undertaker.

(4) In this Schedule—

“existing appointee” and “new appointee” shall be construed in accordance with sub-paragraph (2) or (3) above according to whether this Schedule is applying in the case mentioned in the first or second of those sub-paragraphs;

“other appointees” means any companies, other than the existing appointee and the new appointee, which are likely on or at a time after the relevant date to be holding appointments as water undertakers or sewerage undertakers for any area which is or includes any part of the area for which the existing appointee has at any time held an appointment as water undertaker or sewerage undertaker;

“the relevant date” means—

(a) where this Schedule applies by virtue of sub-paragraph (2) above, the coming into force of the appointment or variation mentioned in paragraph (a) of that sub-paragraph; and

(b) where this Schedule applies by virtue of sub-paragraph (3) above, such day, being a day before the discharge of the special administration order takes effect, as the High Court may appoint for the purposes of this Schedule;

“special administration order” means an order under section 23 of this Act (whether made by virtue of that section or section 24 of this Act); and

“special administrator”, in relation to a company in relation to which a special administration order has been made, means the person for the time being holding office for the purposes of section 23(2) of this Act.

Making and modification of transfer schemes

2

(1) The existing appointee, acting with the consent of the new appointee and, in relation to the matters affecting them, of any other appointees, may make a scheme under this Schedule for the transfer of property, rights and liabilities from the existing appointee to the new appointee.

(2) A scheme under this Schedule shall not take effect unless it is approved by the Secretary of State or the Director.

(3) Where a scheme under this Schedule is submitted to the Secretary of State or the Director for his approval, he may, with the consent of the new appointee, of the existing appointee and, in relation to the matters affecting them, of any other appointees, modify the scheme before approving it.

(4) If at any time after a scheme under this Schedule has come into force in relation to the property, rights and liabilities of any company the Secretary of State considers it appropriate to do so and the existing appointee, the new appointee and, in relation to the provisions of the order which affect them, any other appointees consent to the making of the order, the Secretary of State may by order provide that that scheme shall for all purposes be deemed to have come into force with such modifications as may be specified in the order.

(5) An order under sub-paragraph (4) above may make, with effect from the coming into force of the scheme to which it relates, any such provision as could have been made by the scheme and, in connection with giving effect to that provision from that time, may contain such supplemental, consequential and transitional provision as the Secretary of State considers appropriate.

(6) In determining, in accordance with his duties under Part I of this Act, whether and in what manner to exercise any power conferred on him by this paragraph the Secretary of State or the Director shall have regard to the need to ensure that any provision for the transfer of property, rights and liabilities in accordance with a scheme under this Schedule allocates property, rights and liabilities to the different companies affected by the scheme in such proportions as appear to him to be appropriate in the context of the different functions which will, by virtue of this Act, be carried out at different times on and after the relevant date by the new appointee, by the existing appointee and by any other appointees.

(7) It shall be the duty of the new appointee, of the existing appointee and of any other appointees to provide the Secretary of State or the Director with all such information and other assistance as he may reasonably require for the purposes of, or in connection with, the exercise of any power conferred on him by this paragraph.

(8) A company which without reasonable excuse fails to do anything required of it by virtue of sub-paragraph (7) above shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 5 on the standard scale.

(9) Without prejudice to the other provisions of this Act relating to the special administrator of a company, anything which is required by this paragraph to be done by a company shall, where that company is a company in relation to which a special administration order is in force, be effective only if it is done on the company’s behalf by its special administrator.

Transfers by scheme

3

(1) A scheme under this Schedule for the transfer of the existing appointee’s property, rights and liabilities shall come into force on the relevant date and, on coming into force, shall have effect, in accordance with its provisions and without further assurance, so as to transfer the property, rights and liabilities to which the scheme relates to the new appointee.

(2) For the purpose of making any division of property, rights or liabilities which it is considered appropriate to make in connection with the transfer of property, rights and liabilities in accordance with a scheme under this Schedule, the provisions of that scheme may—

(a) create for the existing appointee, the new appointee or any other appointees an interest in or right over any property to which the scheme relates;

(b) create new rights and liabilities as between any two or more of those companies; and

(c) in connection with any provision made by virtue of paragraph (a) or (b) above, make incidental provision as to the interests, rights and liabilities of other persons with respect to the subject-matter of the scheme.

(3) A scheme under this Schedule may contain provision for the consideration to be provided by the new appointee and by any other appointees in respect of the transfer or creation of property, rights and liabilities by means of the scheme; and any such provision shall be enforceable in the same way as if the property, rights and liabilities had been created or transferred, and (if the case so requires) had been capable of being created or transferred, by agreement between the parties.

(4) The property, rights and liabilities of the existing appointee that shall be capable of being transferred in accordance with a scheme under this Schedule shall include—

(a) property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the existing appointee;

(b) such property, rights and liabilities to which the existing appointee may become entitled or subject after the making of the scheme and before the relevant date as may be described in the scheme;

(d) rights and liabilities under enactments;

(e) rights and liabilities under the law of any part of the United Kingdom or of any country or territory outside the United Kingdom.

(5) Where a scheme under this Schedule is made in the case specified in paragraph 1(3) above, the scheme may provide for the transfer to the new appointee, with such modifications as may be specified in the scheme, of the appointment under tnund r e t uedernent under Chapter I of Part II of this Act which is held by the existing appointee; and in such a case different schemes under this Schedule may provide for the transfer of such an appointment to different companies as respects different parts of the area to which the appointment relates.

(6) The provision that may be made by virtue of sub-paragraph (2)(b) above includes—

(a) provision for treating any person who is entitled by virtue of a scheme under this Schedule to possession of a document as having given another person an acknowledgement in writing of the right of that other person to the production of the document and to delivery of copies thereof; and

(b) provision applying section 64 of the Law of Property Act 1925 (production and safe custody of documents) in relation to any case in relation to which provision falling within paragraph (a) above has effect.

(7) For the avoidance of doubt, it is hereby declared that the transfers authorised by paragraph (a) of sub-paragraph (4) above include transfers which, by virtue of that paragraph, are to take effect as if there were no such contravention, liability or interference with any interest or right as there would be, in the case of a transfer or assignment otherwise than in accordance with a scheme under this Schedule, by reason of any provision having effect (whether under any enactment or agreement or otherwise) in relation to the terms on which the existing appointee is entitled or subject to the property, right or liability in question.

Supplemental provisions of schemes

4

(1) A scheme under this Schedule may contain supplemental, consequential and transitional provision for the purposes of, or in connection with, the provision for the transfers or any other provision made by the scheme.

(2) Without prejudice to the generality of sub-paragraph (1) above, a scheme under this Schedule may provide—

(a) that for purposes connected with any transfers made in accordance with the scheme (including the transfer of rights and liabilities under an enactment) the new appointee is to be treated as the same person in law as the existing appointee;

(b) that, so far as may be necessary for the purposes of or in connection with any such transfers, agreements made, transactions effected and other things done by or in relation to the existing appointee are to be treated as made, effected or done by or in relation to the new appointee;

(c) that, so far as may be necessary for the purposes of or in connection with any such transfers, references in any agreement (whether or not in writing) or in any deed, bond, instrument or other document to, or to any officer of, the existing appointee are to have effect with such modifications as are specified in the scheme;

(d) that proceedings commenced by or against the existing appointee are to be continued by or against the new appointee;

(e) that the effect of any transfer under the scheme in relation to contracts of employment with the existing appointee is not to be to terminate any of those contracts but is to be that periods of employment with the existing appointee are to count for all purposes as periods of employment with the new appointee;

(f) that disputes as to the effect of the scheme between the existing appointee and the new appointee, between either of them and any other appointee or between different companies which are other appointees are to be referred to such arbitration as may be specified in or determined under the scheme;

(g) that determinations on such arbitrations and certificates given jointly by two or more such appointees as are mentioned in paragraph (f) above as to the effect of the scheme as between the companies giving the certificates are to be conclusive for all purposes.

Duties of existing appointee after the scheme comes into force

5

(1) A scheme under this Schedule may provide for the imposition of duties on the existing appointee and on the new appointee to take all such steps as may be requisite to secure that the vesting in the new appointee, by virtue of the scheme, of any foreign property, right or liability is effective under the relevant foreign law.

(2) The provisions of a scheme under this Schedule may require the existing appointee to comply with any directions of the new appointee in performing any duty imposed on the existing appointee by virtue of a provision included in the scheme under sub-paragraph (1) above.

(3) A scheme under this Schedule may provide that, until the vesting of any foreign property, right or liability of the existing appointee in the new appointee is effective under the relevant foreign law, it shall be the duty of the existing appointee to hold that property or right for the benefit of, or to discharge that liability on behalf of, the new appointee.

(4) Nothing in any provision included by virtue of this paragraph in a scheme under this Schedule shall be taken as prejudicing the effect under the law of any part of the United Kingdom of the vesting by virtue of the scheme in the new appointee of any foreign property, right or liability.

(5) A scheme under this Schedule may provide that, in specified cases, foreign property, rights or liabilities that are acquired or incurred by an existing appointee after the scheme comes into force are immediately to become property, rights or liabilities of the new appointee; and such a scheme may make the same provision in relation to any such property, rights or liabilities as can be made, by virtue of the preceding provisions of this paragraph, in relation to foreign property, rights and liabilities vested in the existing appointee when the scheme comes into force.

(6) References in this paragraph to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have to be determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

(7) Any expenses incurred by an existing appointee in consequence of any provision included by virtue of this paragraph in a scheme under this Schedule shall be met by the new appointee.

(8) Duties imposed on a company by virtue of this paragraph shall be enforceable in the same way as if they were imposed by a contract between the existing appointee and the new appointee.

Further transitional provision and local statutory provisions

6

(1) The Secretary of State may, if he thinks it appropriate to do so for the purposes of, or in connection with, any appointment or variation to which section 12 of this Act applies or any scheme under this Schedule, by order made by statutory instrument—

(a) make any provision which corresponds in relation to any enactment mentioned in Schedule 26 to this Act to any provision made by that Schedule or makes similar provision in relation to any other enactment;

(b) amend or repeal any local statutory provision.

(2) An order under this paragraph may—

(a) make provision applying generally in relation to local statutory provisions of a description specified in the order;

(b) make different provision for different cases, including different provision in relation to different persons, circumstances or localities; and

SCHEDULE 6

Part I — Modifications of the 1986 Act

General application of provisions of 1986 Act

1

Where a special administration order has been made, sections 11 to 15, 17 to 23 and 27 of the 1986 Act (which relate to administration orders under Part II of that Act) shall apply, with the modifications specified in the following provisions of this Part of this Schedule—

(a) as if references in those sections to an administration order were references to a special administration order and references to an administrator were references to a special administrator; and

(b) where the company in relation to which the order has been made is a statutory water company that is not a limited company, as if references to a company included references to such a company.

Effect of order

2

In section 11 of the 1986 Act (effect of order), as applied by this Part of this Schedule—

(a) the requirement in subsection (1)(a) that any petition for the winding up of the company shall be dismissed shall be without prejudice to the special administration order in a case where the order is made by virtue of section 24 of this Act;

(b) the references in subsections (1)(b), (3)(b) and (4) to an administrative receiver, in relation to a statutory water company that is not a limited company, shall include references to any receiver whose functions in relation to that company correspond to those of an administrative receiver in relation to a limited company; and

(c) the reference in subsection (3)(d) to proceedings shall include a reference to any proceedings under or for the purposes of section 20 of this Act.

Appointment of special administrator

3

In section 13 of the 1986 Act (appointment of administrator), as applied by this Part of this Schedule, for subsection (3) there shall be substituted the following subsection—

(3) An application for an order under subsection (2) may be made— (a) by the Secretary of State; (b) with the consent of the Secretary of State, by the Director General of Water Services; (c) by any continuing special administrator of the compa3y; or (d) where there is no such special administrator, by the compane, the directors or any creditor or creditors of the company.

General powers of special administrator

4

In section 14 of the 1986 Act (general powers of administrator), as applied by this Part of this Schedule—

(a) in subsection (1)(b), the reference to the powers specified in Schedule 1 to that Act shall be deemed to include a reference to a power to act on behalf of the company for the purposes of this Act, any local statutory provision or the exercise or performance of any power or duty which is conferred or imposed on the company by virtue of its holding an appointment under Chapter I of Part II of this Act; and

(b) in subsection (4), the reference to a power conferred by the company’s memorandum or articles of association shall be deemed to include a reference to a power conferred by a local statutory provision or by virtue of the company’s holding such an appointment.

Power to deal with charged property

5

(1) Section 15 of the 1986 Act (power to deal with charged property), as applied by this Part of this Schedule, shall have effect as follows.

(2) In subsection (5)(b) (amount to be paid to chargeholder not to be less than open market value), for the words “in the open market by a willing vendor” there shall be substituted the words “for the best price which is reasonably available on a sale which is consistent with the purposes of the special administration order”.

(3) Subsections (7) and (8) (notice to registrar) shall not apply where the company in relation to which the special administration order is made is a statutory water company that is not a limited company.

Duties of special administrator

6

(1) Section 17 of the 1986 Act (duties of administrator), as applied by this Part of this Schedule, shall have effect as follows.

(2) For subsection (2) there shall be substituted the following subsection—

(2) Subject to any directions of the court, it shall be the duty of the special administrator to manage the affairs, business and property of the company in accordance with proposals, as for the time being revised under section 23, which have been prepared for the purposes of that section by him or any predecessor of his.

(3) In subsection (3), paragraph (a) (right of creditors to require the holding of a creditors' meeting) shall be omitted.

Discharge of order

7

(1) Section 18 of the 1986 Act (discharge and variation of administration order), as applied by this Part of this Schedule, shall have effect as follows.

(2) For subsections (1) and (2) there shall be substituted the following subsection—

(1) An application for a special administration order to be discharged may be made— (a) by the special administrator, on the ground that the purposes of the order have been achieved; or (b) by the Secretary of State or, with the consent of the Secretary of State, the Director General of Water Services, on the ground that it is no longer necessary that those purposes are achieved.

(3) In subsection (3), the words “or vary” shall be omitted.

(4) In subsection (4), the words “or varied” and “or variation” shall be omitted and for the words “to the registrar of companies” there shall be substituted—

(a) where the company in relation to which the special administration order is made is a statutory water company that is not a limited company, the words “to the Director General of Water Services”; and

(b) in any other case, the words “to the registrar of companies and to the Director General of Water Services”.

Notice of making of order

8

In section 21(2) of the 1986 Act (notice of order to be given by administrator), as applied by this Part of this Schedule, for the words “to the registrar of companies” there shall be substituted—

(a) where the company in relation to which the special administration order is made is a statutory water company that is not a limited company, the words “to the Director General of Water Services”; and

(b) in any other case, the words “to the registrar of companies, to the Director General of Water Services”.

Statement of proposals

9

In section 23 of the 1986 Act (statement of proposals), as applied by this Part of this Schedule, for subsections (1) and (2) there shall be substituted the following subsections—

(1) Where a special administration order has been made, the special administrator shall, within 3 months (or such longer period as the court may allow) after the making of the order send a statement of his proposals for achieving the purposes of the order— (a) to the Secretary of State and to the Director General of Water Services; (b) so far as he is aware of their addresses, to all creditors of the company; and (c) except where the company in relation to which the special administration order is made is a statutory water company that is not a limited company, to the registrar of companies; and may from time to time revise those proposals. (2) If at any time— (a) the special administrator proposes to make revisions of the proposals for achieving the purposes of the special administration order; and (b) those revisions appear to him to be substantial, the special administrator shall, before making those revisions, send a statement of the proposed revisions to the Secretary of State, to the Director General of Water Services, (so far as he is aware of their addresses) to all creditors of the company and, except where the company in relation to which the special administration order is made is a statutory water company that is not a limited company, to the registrar of companies. (2A) Where the special administrator is required by subsection (1) or (2) to send any person a statement before the end of any period or before making any revision of any proposals, he shall also, before the end of that period or, as the case may be, before making those revisions either— (a) send a copy of the statement (so far as he is aware of their addresses) to all members of the company; or (b) publish in the prescribed manner a notice stating an address to which members should write for copies of the statement to be sent to them free of charge.

Applications to court

10

(1) Section 27 of the 1986 Act (protection of interests of creditors and members), as applied by this Part of this Schedule, shall have effect as follows.

(2) After subsection (1) there shall be inserted the following subsection—

(1A) At any time when a special administration order is in force the Secretary of State or, with the consent of the Secretary of State, the Director General of Water Services may apply to the High Court by petition for an order under this section on the ground that the special administrator has exercised or is exercising, or proposing to exercise, his powers in relation to the company in a manner which— (a) will not best ensure the achievement of the purposes of the order; or (b) without prejudice to paragraph (a) above, involves either a contravention of the conditions of the company’s appointment under Chapter I of Part II of the Water Act 1989 or of any statutory or other requirement imposed on the company in consequence of that appointment.

(3) In subsection (3) (order not to prejudice or prevent voluntary arrangements or administrator’s proposals), for paragraphs (a) and (b) there shall be substituted the words “the achievement of the purposes of the order”.

(4) Subsections (4)(d) and (6) (power of court to order discharge) shall be omitted.

Part II — Supplemental

General adaptations and saving

11

(1) Subject to the preceding provisions of this Schedule, references in the 1986 Act (except in sections 8 to 10 and 24 to 26) or in any other enactment passed before this Act to an administration order under Part II of that Act, to an application for such an order and to an administrator shall include references, respectively, to a special administration order, to an application for a special administration order and to a special administrator.

(2) Subject as aforesaid and to sub-paragraph (3) below, references in the 1986 Act or in any other enactment passed before this Act to an enactment contained in Part II of that Act shall include references to that enactment as applied by section 23 of this Act or Part I of this Schedule.

(3) Sub-paragraphs (1) and (2) above shall apply in relation to a reference in an enactment contained in Part II of the 1986 Act only so far as necessary for the purposes of the operation of the provisions of that Part as so applied.

(4) The provisions of this Schedule shall be without prejudice to the power conferred by section 411 of the 1986 Act (company insolvency rules), as modified by sub-paragraphs (1) and (2) above.

Interpretation

12

(1) In this Schedule “the 1986 Act” means the Insolvency Act 1986.

(2) In this Schedule and in any modification of the 1986 Act made by this Schedule—

“special administration order” means an order under section 23 of this Act (whether made by virtue of that section or section 24 of this Act); and

“special administrator”, in relation to a special administration order, means any person appointed in relation to that order for the purposes of section 23(2) of this Act.

SCHEDULE 7

Orders to which Schedule applies

1

This Schedule applies to orders under section 51 or 111 of this Act; and in this Schedule—

“a relevant authority”— in relation to an order under section 51 of this Act, means the Director or a water undertaker; and in relation to an order under section 111 of this Act, means the Authority; and

“the relevant locality”— in relation to a proposed order under section 51 of this Act, means the locality which would be affected by the provision proposed to be made by the order; and in relation to a proposed order under section 111 of this Act, means the area proposed to be designated as a water protection zone by the order.

Applications for orders

2

(1) Where a relevant authority applies to the Secretary of State for an order to which this Schedule applies, the applicant shall—

(a) submit to the Secretary of State a draft of the order applied for;

(b) publish a notice with respect to the application, at least once in each of two successive weeks, in one or more newspapers circulating in the relevant locality;

(c) not later than the date on which that notice is first published serve a copy of the notice on every local authority and water undertaker whose area includes the whole or any part of that locality; and

(d) publish a notice in the London Gazette which—

(i) states that the draft order has been submitted to the Secretary of State;

(ii) names every local authority on whom a notice is required to be served under this paragraph;

(iii) specifies a place where a copy of the draft order and of any relevant map or plan may be inspected; and

(iv) gives the name of every newspaper in which the notice required by virtue of paragraph (b) above was published and the date of an issue containing the notice.

(2) The notice required by virtue of sub-paragraph (1)(b) above to be published with respect to an application for an order shall—

(a) state the general effect of the order applied for;

(b) specify a place where a copy of the draft order and of any relevant map or plan may be inspected by any person free of charge at all reasonable times during the period of twenty-eight days beginning with the date of the first publication of the notice; and

(c) state that any person may, within that period, by notice to the Secretary of State object to the making of the order.

Supply of copies of draft orders

3

The applicant for an order to which this Schedule applies shall, at the request of any person and on payment by that person of such charge (if any) as the applicant may reasonably require, furnish that person with a copy of the draft order submitted to the Secretary of State under paragraph 2 above.

Modifications of proposals

4

(1) On an application for an order to which this Schedule applies, the Secretary of State may make the order either in the terms of the draft order submitted to him or, subject to sub-paragraph (2) below, in those terms as modified in such manner as he thinks fit, or may refuse to make an order.

(2) The Secretary of State shall not make such a modification of a draft order submitted to him as he considers is likely adversely to affect any persons unless he is satisfied that the applicant for the order has given and published such additional notices, in such manner, as the Secretary of State may have required.

(3) Subject to sub-paragraph (2) above and to the service of notices of the proposed modification on such local authorities as appear to him to be likely to be interested in it, the modifications that may be made by the Secretary of State of a draft order under section 111 of this Act include any modification of the area designated by the draft order as a water protection zone.

Consideration of objections etc.

5

Without prejudice to section 120 of this Act, where an application for an order to which this Schedule applies has been made, the Secretary of State may, if he considers it appropriate to do so, hold a local inquiry before making any order on the application.

SCHEDULE 8

General

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Public Health Act 1936 (c. 49)

2

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) Without prejudice to the powers conferred by virtue of Chapter IV of Part II of this Act, no liability shall arise at any time on or after the transfer date to make a payment by virtue of section 337 of the 1936 Act (saving for certain yearly payments).

(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Public Health (Drainage of Trade Premises) Act 1937 (c. 40)

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Public Health Act 1961 (c. 64)

4

(1) Sections 12 to 14 of and Schedule 2 to the 1961 Act (contributions to costs of sewering highways etc.) shall cease to have effect.

(2) On and after the transfer date—

(a) appeals under section 60 of the 1961 Act (power to vary conditions); and

(b) applications under section 62 of that Act (power to vary directions),

shall be made to the Director, instead of to the Secretary of State; and, accordingly, references in those provisions and in sections 66 and 68 of that Act to the Secretary of State shall have effect on and after that date, in relation to any such appeal or application, as references to the Director.

(3) Sub-paragraph (4) of paragraph 3 above shall apply with the necessary modifications in relation to an appeal under section 60 of the 1961 Act as it applies in relation to such an appeal or reference as is mentioned in that sub-paragraph.

(4) On and after the transfer date the power under subsection (5) of section 60 of the 1961 Act to give permission for an appeal under that section to be brought more than two months after the giving of a notice of any direction under subsection (1) of that section shall be exercisable only by the Director.

(5) In section 63(1)(a) of the 1961 Act (extension of definition of “trade”), after the words “horticultural purposes” there shall be inserted the words “or for the purposes of fish farming”, and after the word “horticulture” in the words after paragraph (b) there shall be inserted the words “fish farming”.

(6) The provisions of Part XII of the 1936 Act so far as they have effect by virtue of section 1(3) of the 1961 Act in relation to any enactment contained in Part V of the 1961 Act shall so have effect as they have effect, by virtue of the preceding provisions of this Schedule, in relation to the sections specified in paragraph 1(2)(a) above.

The Control of Pollution Act 1974 (c. 40)

5

(1) In section 43 of the Control of Pollution Act 1974 (control of discharges into sewers)—

(a) for the references in subsections (1) and (6) to a water authority there shall, in relation to any time on or after the transfer date, be substituted references to a sewerage undertaker;

(b) for the references in subsections (3) and (5) to the water authority whose consent for any discharge is deemed to be given by virtue of subsection (2) of that subsection there shall, in relation to any such time, be substituted references to the sewerage undertaker for the area which immediately before that date was that water authority’s area for the purposes of section 14 of the 1973 Act; and

(c) for the references in subsection (5) (appeals to the Secretary of State) to the Secretary of State there shall, in relation to any such time, be substituted references to the Director;

and any regulations made under the said subsection (5) and in force immediately before that date shall have effect on and after that date (subject to any revocation or amendment in exercise of the power conferred by that subsection) with such modifications as may be necessary in consequence of paragraphs (a) and (b) above or for the purpose of enabling appeals made on or after that date to be made to and determined by the Director.

(2) In section 44(3) of the said Act of 1974 (regulations with respect to arbitrations) and in any regulations made under that section and in force immediately before the transfer date, for references to a water authority there shall be substituted references to a sewerage undertaker.

(3) In section 45 of the said Act of 1974 (early variations of conditions of discharges), for references to a water authority there shall be substituted references to a sewerage undertaker.

(4) On and after the transfer date appeals under subsection (4) of the said section 45 shall be made to the Director, instead of to the Secretary of State; and, accordingly, references in that subsection to the Secretary of State shall have effect on and after that date as references to the Director.

The Building Act 1984 (c. 55)

6

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