Water Act 1989 (c. 15)

(The document as of February, 2008)

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(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 [1967 c. 13.] Parliamentary Commissioner Act 1967, the [1968 c. 3.] Capital Allowances Act 1968, the [1975 c. 24.] House of Commons Disqualification Act 1975 or the [1975 c. 25.] 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 [1976 c. 70.] Land Drainage Act 1976;

(b) subsections (1) to (4), (6) and (7) of section 141 and, so far as they amend the [1937 c. 33.] Diseases of Fish Act 1937 or section 39 of the [1975 c. 51.] 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 [1970 c. 40.] Agriculture Act 1970, the [1974 c. 37.] Health and Safety at Work etc. Act 1974 and the [1978 c. 44.] Employment Protection (Consolidation) Act 1978; and

(e) section 190 and Schedule 27 so far as they relate to the Diseases of Fish Act 1937, the [1951 c. 7. (15 & 16 Geo. 6 and 1 Eliz. 2).] Border Rivers (Prevention of Pollution) Act 1951, section 126 of the [1963 c. 38.] Water Resources Act 1963 (border rivers), section 39(4) of the Salmon and Freshwater Fisheries Act 1975 and the [1983 c. 30.] 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 [1951 c. 26.] 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 [1897 c. 38.] Public Health (Scotland) Act 1897, the [1949 c. 75.] Agricultural Holdings (Scotland) Act 1949, the [1951 c. 66.] Rivers (Prevention of Pollution) (Scotland) Act 1951, the [1956 c. 60.] Valuation and Rating (Scotland) Act 1956 and the [1980 c. 45.] Water (Scotland) Act 1980;

(d) section 190 and Part I of Schedule 27 so far as they relate to section 104 of the [1974 c. 40.] 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.

SCHEDULES

Section 1.

SCHEDULE 1 The National Rivers Authority

Part I Organisation and Proceedings etc. of Authority

Membership

1 (1) Subject to the following provisions of this paragraph, a member shall hold and vacate office in accordance with the terms of his appointment and shall, on ceasing to be a member, be eligible for re-appointment.

(2) A member may at any time by notice to the appropriate Minister resign his office.

(3) The appropriate Minister may remove a member if he is satisfied--

(a) that that member has been absent from meetings of the Authority for a period of more than three consecutive months without the permission of the Authority;

(b) that that member has been adjudged bankrupt, that his estate has been sequestrated or that he has made a composition or arrangement with, or granted a trust deed for, his creditors; or

(4) In this paragraph and paragraph 2 below "the appropriate Minister" means --

(a) in relation to a member appointed under section 1(2)(a) of this Act, the Minister; and

(b) in relation to any other member, the Secretary of State.

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 In the [1967 c. 13.] Parliamentary Commissioner Act 1967, in Schedule 2 (departments and authorities subject to investigation)--

(a) there shall be inserted (at the appropriate place) the following entry--

" National Rivers Authority. " ;

and

(b) after Note 8 there shall be inserted the following Note--

" 9 The reference to the National Rivers Authority is a reference to that Authority in relation to all its functions other than its flood defence functions (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 [1976 c. 70.] Land Drainage Act 1976). "

The Local Commissioners

12 In section 25(1) of the [1974 c. 7.] 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 In the [1975 c. 24.] House of Commons Disqualification Act 1975, in Part II of Schedule 1 (bodies of which all the members are disqualified), there shall be inserted (at the appropriate place) the following entry--

" The National Rivers Authority. " ;

and the like insertion shall be made in Part II of Schedule 1 to the [1975 c. 25.] Northern Ireland Assembly Disqualification Act 1975.

Interpretation

14 In this Part of this Schedule "member" means any member of the Authority, including the chairman and the deputy chairman.

Part II Financial Provisions

General financial duties

15 (1) Subject to paragraph 16 below, the relevant Ministers may, after consultation with the Authority and with the Treasury's approval, determine the financial duties of the Authority, and different determinations may be made for different functions and activities of the Authority.

(2) The relevant Ministers shall give the Authority notice of every determination under this paragraph, and such a determination may--

(a) relate to a period beginning before the date on which it is made;

(b) contain supplemental provisions;

(3) Where it appears to the Secretary of State that the Authority has a surplus, whether on capital or revenue account, the Secretary of State may, after consultation with the Treasury and the Authority, direct the Authority to pay to him such amount not exceeding the amount of that surplus as may be specified in the direction; and it shall be the duty of the Authority to comply with any such direction.

(4) Any revenue to which sub-paragraph (1) of paragraph 16 below applies (including so much of any such revenue as falls within sub-paragraph (2) of that paragraph) and any funds to which section 88(1) of the [1963 c. 38.] Water Resources Act 1963 (funds held for fisheries purposes under local statutory provisions) applies shall be disregarded in determining the amount of any surplus for the purposes of sub-paragraph (3) above.

(5) Any sum received by the Secretary of State under sub-paragraph (3) above shall be paid into the Consolidated Fund.

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 [1976 c. 70.] Land Drainage Act 1976 (revenue raised from local authorities) or any regulations under section 74 of the [1988 c. 41.] 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 [1985 c. 6.] 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 [1983 c. 44.] 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.

Section 4.

SCHEDULE 2 Schemes providing for the Initial Transfers

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 [1925 c. 20.] 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.

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