Water Industry Act 1991 (c. 56)

(The document as of February, 2008)

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212 Judicial disqualification

No judge of any court or justice of the peace shall be disqualified from acting in relation to any proceedings to which a relevant undertaker is a party by reason only that he is or may become liable to pay a charge to that undertaker in respect of any service that is not the subject-matter of the proceedings.

Powers to make regulations

213 Powers to make regulations

(1) The powers of the Secretary of State to make regulations under this Act shall be exercisable by statutory instrument subject (except in the case of regulations under section 8(1) or (2) above) to annulment in pursuance of a resolution of either House of Parliament.

(2) Subject to subsection (3) below, the provisions of any regulations made by the Secretary of State under this Act may include–

(a) provision for any duty or other requirement imposed by the regulations on a water undertaker or sewerage undertaker to be enforceable under section 18 above by the Secretary of State, by the Director or by either of them;

(b) provision, where such a duty or requirement is so enforceable by either of them, for enforcement by the Director to be subject to such consent or authorisation as may be prescribed;

(c) provision which, in relation to the furnishing of any information or the making of any application under the regulations, makes provision corresponding to section 207 above;

(d) provision for anything that may be prescribed by the regulations to be determined under the regulations and for anything falling to be so determined to be determined by such persons, in accordance with such procedure and by reference to such matters, and to the opinion of such persons, as may be prescribed;

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

(f) such supplemental, consequential and transitional provision as the Secretary of State considers appropriate.

(3) Except to the extent that they would do so apart from this section, the power to make regulations under section 113, 125 or 126 above or under section 214 below or Schedule 8 to this Act--

(a) shall not include the powers conferred by virtue of paragraphs (a) to (d) of subsection (2) above; and

(b) in the case of the power to make regulations under section 214 below, shall also not include the powers conferred by virtue of paragraphs (e) and (f) of that subsection.

214 Power to prescribe forms

(1) The Secretary of State may by regulations prescribe the form of any notice or other document to be used for any of the purposes of the relevant sewerage provisions.

(2) If forms are prescribed under this section, those forms or forms to the like effect may be used in all cases to which those forms are applicable.

Local inquiries

215 Local inquiries

(1) The Secretary of State may cause a local inquiry to be held in any case where he is authorised by any of the relevant sewerage provisions to determine any difference, to make any order, to give any consent or otherwise to act under any of those provisions.

(2) Subject to subsection (3) below, subsections (2) to (5) of section 250 of the [1972 c. 70.] Local Government Act 1972 (which contain supplementary provisions with respect to local inquiries held in pursuance of that section) shall apply to local inquiries under subsection (1) above or any of the other provisions of this Act as they apply to inquiries under that section.

(3) Subsection (4) of the said section 250 shall apply in accordance with subsection (2) above in relation to such local inquiries under this Act as are held with respect to any matter affecting the carrying out of any function of the NRA as if the reference to a local authority in that subsection included a reference to the NRA.

Construction of Act

216 Provisions relating to the service of documents

(1) Any document required or authorised by virtue of this Act to be served on any person may be served--

(a) by delivering it to him or by leaving it at his proper address or by sending it by post to him at that address; or

(b) if the person is a body corporate, by serving it in accordance with paragraph (a) above on the secretary or clerk of that body; or

(c) if the person is a partnership, by serving it in accordance with paragraph (a) above on a partner or a person having the control of management of the partnership business.

(2) For the purposes of this section and section 7 of the [1978 c. 30.] Interpretation Act 1978 (which relates to the service of documents by post) in its application to this section, the proper address of any person on whom a document is to be served shall be his last known address, except that--

(a) in the case of service on a body corporate or its secretary or clerk, it shall be the address of the registered or principal office of the body;

(b) in the case of service on a partnership or a partner or a person having the control or management of a partnership business, it shall be the principal office of the partnership;

and for the purposes of this subsection the principal office of a company registered outside the United Kingdom or of a partnership carrying on business outside the United Kingdom is its principal office within the United Kingdom.

(3) If a person to be served by virtue of this Act with any document by another has specified to that other an address within the United Kingdom other than his proper address (as determined in pursuance of subsection (2) above) as the one at which he or someone on his behalf will accept documents of the same description as that document, that address shall also be treated as his proper address for the purposes of this section and for the purposes of the said section 7 in its application to this section.

(4) Where under any provision of this Act any document is required to be served on the owner, on a lessee or on the occupier of any premises then--

(a) if the name or address of the owner, of the lessee or, as the case may be, of the occupier of the premises cannot after reasonable inquiry be ascertained; or

(b) in the case of service on the occupier, if the premises appear to be or are unoccupied,

that document may be served either by leaving it in the hands of a person who is or appears to be resident or employed on the land or by leaving it conspicuously affixed to some building or object on the land.

(5) This section shall not apply to any document in relation to the service of which provision is made by rules of court.

217 Construction of provision conferring powers by reference to undertakers' functions

(1) The purposes to which this section applies shall be the construction of any enactment which, by reference to the functions of a relevant undertaker, confers any power on or in relation to that undertaker.

(2) For the purposes to which this section applies the functions of every relevant undertaker shall be taken to include joining with or acting on behalf of--

(a) the NRA;

(b) one or more other relevant undertakers; or

for the purpose of carrying out any works or acquiring any land which at least one of the bodies with which it joins, or on whose behalf it acts, is authorised to carry out or acquire for the purposes of that body's functions under any enactment or of any function which is taken to be a function of that body for the purposes to which this section or section 3 of the [1991 c. 57.] Water Resources Act 1991 (functions of NRA for certain purposes) applies.

(3) For the purposes to which this section applies the functions of every relevant undertaker shall be taken to include the protection against pollution--

(a) of any waters, whether on the surface or underground, which belong to the NRA or any water undertaker or from which the NRA or any water undertaker is authorised to take water;

(b) without prejudice to paragraph (a) above, of any reservoir which belongs to or is operated by the NRA or any water undertaker or which the NRA or any water undertaker is proposing to acquire or construct for the purpose of being so operated; and

(c) of any underground strata from which the NRA or any water undertaker is for the time being authorised to abstract water in pursuance of a licence under Chapter II of Part II of the [1991 c. 57.] Water Resources Act 1991.

(4) For the purposes to which this section applies the functions of every relevant undertaker shall be taken to include the furtherance of research into matters in respect of which functions are conferred by or under this Act, the other consolidation Acts or the [1989 c. 15.] Water Act 1989 on the NRA, on water undertakers or on sewerage undertakers.

(5) For the purposes to which this section applies the functions of every relevant undertaker shall be taken to include the provision of houses and other buildings for the use of persons employed by that undertaker and the provision of recreation grounds for persons so employed.

(6) For the purposes to which this section applies the functions of every water undertaker shall be taken to include the provision of supplies of water in bulk, whether or not such supplies are provided for the purposes of, or in connection with, the carrying out of any other function of that undertaker.

(7) For the purposes to which this section applies the functions of every water undertaker shall be taken to include the doing of anything in pursuance of any arrangements under section 20 of the Water Resources Act 1991 between that undertaker and the NRA.

(8) In this section "the other consolidation Acts" has the same meaning as in section 206 above.

218 Meaning of "domestic purposes" in relation to water supply

(1) Subject to the following provisions of this section, in this Act references to domestic purposes, in relation to a supply of water to any premises or in relation to any cognate expression, are references to the drinking, washing, cooking, central heating and sanitary purposes for which water supplied to those premises may be used.

(2) Where the whole or any part of the premises are or are to be occupied as a house, those purposes shall be taken to include--

(a) the purposes of a profession carried on in that house or, where--

(i) that house and another part of the premises are occupied together; and

(ii) the house comprises the greater part of what is so occupied,

in that other part; and

(b) such purposes outside the house (including the washing of vehicles and the watering of gardens) as are connected with the occupation of the house and may be satisfied by a supply of water drawn from a tap inside the house and without the use of a hosepipe or similar apparatus.

(3) No such reference to domestic purposes shall be taken to include a reference--

(a) to the use of a bath having a capacity, measured to the centre line of overflow or in such other manner as may be prescribed, of more than two hundred and thirty litres;

(b) to the purposes of the business of a laundry; or

219 General interpretation

(1) In this Act, except in so far as the context otherwise requires--

"accessories", in relation to a water main, sewer or other pipe, includes any manholes, ventilating shafts, inspection chambers, settling tanks, wash-out pipes, pumps, ferrules or stopcocks for the main, sewer or other pipe, or any machinery or other apparatus which is designed or adapted for use in connection with the use or maintenance of the main, sewer or other pipe or of another accessory for it, but does not include any telecommunication apparatus (within the meaning of Schedule 2 to the [1984 c. 12.] Telecommunications Act 1984) unless it--
(a)
is or is to be situated inside or in the close vicinity of the main, sewer or other pipe or inside or in the close vicinity of another accessory for it; and
(b)
is intended to be used only in connection with the use or maintenance of the main, sewer or other pipe or of another accessory for it;
"analyse", in relation to any sample of land, water or effluent, includes subjecting the sample to a test of any description, and cognate expressions shall be construed accordingly;
"conservancy authority" means any person who has a duty or power under any enactment to conserve, maintain or improve the navigation of a tidal water, and is not a harbour authority or navigation authority;
"contravention" includes a failure to comply, and cognate expressions shall be construed accordingly;
"customer or potential customer", in relation to a company holding an appointment under Chapter I of Part II of this Act, means--
(a)
any person for or to whom that company provides any services in the course of carrying out the functions of a water undertaker or sewerage undertaker; or
(b)
any person who might become such a person on making an application for the purpose to the company;
"damage", in relation to individuals, includes death and any personal injury, including any disease or impairment of physical or mental condition;
"the Director" means the Director General of Water Services;
"disposal"--
(a)
in relation to land or any interest or right in or over land, includes the creation of such an interest or right and a disposal effected by means of the surrender or other termination of any such interest or right; and
(b)
in relation to sewage, includes treatment;

and cognate expressions shall be construed accordingly;
"disposal main" means (subject to subsection (2) below) any outfall pipe or other pipe which--
(a)
is a pipe for the conveyance of effluent to or from any sewage disposal works, whether of a sewerage undertaker or of any other person; and
(b)
is not a public sewer;
"domestic purposes", except in relation to sewers, shall be construed in accordance with section 218 above;
"drain" means (subject to subsection (2) below) a drain used for the drainage of one building or of any buildings or yards appurtenant to buildings within the same curtilage;
"effluent" means any liquid, including particles of matter and other substances in suspension in the liquid;
"enactment" includes an enactment contained in this Act or in any Act passed after this Act;
"engineering or building operations", without prejudice to the generality of that expression, includes--
(a)
the construction, alteration, improvement, maintenance or demolition of any building or structure or of any reservoir, watercourse, dam, weir, well, borehole or other works; and
(b)
the installation, modification or removal of any machinery or apparatus;
"financial year" means the twelve months ending with 31st March;
"functions", in relation to a relevant undertaker, means the functions of the undertaker under or by virtue of any enactment and shall be construed subject to section 217 above;
"harbour authority" means a person who is a harbour authority within the meaning of the [1971 c. 60.] Prevention of Oil Pollution Act 1971 and is not a navigation authority;
"highway" and "highway authority" have the same meanings as in the [1980 c. 66.] Highways Act 1980;
"house" means any building or part of a building which is occupied as a dwelling-house, whether or not a private dwelling-house, or which, if unoccupied, is likely to be so occupied;
"information" includes anything contained in any records, accounts, estimates or returns;
"inland waters", has the same meaning as in the [1991 c. 57.] Water Resources Act 1991;
"limited company" means a company within the meaning of the [1985 c. 6.] Companies Act 1985 which is limited by shares;
"local authority" means the council of a district or of a London borough or the Common Council of the City of London;
"local statutory provision" means--
(a)
a provision of a local Act (including an Act confirming a provisional order);
(b)
a provision of so much of any public general Act as has effect with respect to a particular area, with respect to particular persons or works or with respect to particular provisions falling within any paragraph of this definition;
(c)
a provision of an instrument made under any provision falling within paragraph (a) or (b) above; or
(d)
a provision of any other instrument which is in the nature of a local enactment;
"meter" means any apparatus for measuring or showing the volume of water supplied to, or of effluent discharged from, any premises;
"micro-organism" includes any microscopic biological entity which is capable of replication;
"modifications" includes additions, alterations and omissions, and cognate expressions shall be construed accordingly;
"the Monopolies Commission" means the Monopolies and Mergers Commission;
"the NRA" means the National Rivers Authority;
"navigation authority" means any person who has a duty or power under any enactment to work, maintain, conserve, improve or control any canal or other inland navigation, navigable river, estuary, harbour or dock;
"notice" means notice in writing;
"owner", in relation to any premises, means the person who--
(a)
is for the time being receiving the rack-rent of the premises, whether on his own account or as agent or trustee for another person; or
(b)
would receive the rack-rent if the premises were let at a rack-rent,

and cognate expressions shall be construed accordingly;
"prescribed" means prescribed by regulations made by the Secretary of State;
"protected land", in relation to a company holding an appointment under Chapter I of Part II of this Act, means any land which, or any interest or right in or over which--
(a)
was transferred to that company in accordance with a scheme under Schedule 2 to the [1989 c. 15.] Water Act 1989 or, where that company is a statutory water company, was held by that company at any time during the financial year ending with 31st March 1990;
(b)
is or has at any time on or after 1st September 1989 been held by that company for purposes connected with the carrying out of its functions as a water undertaker or sewerage undertaker (including any functions which for the purposes for which section 218 above has effect are taken to be such functions by virtue of subsection (6) or (7) of that section); or
(c)
has been transferred to that company in accordance with a scheme under Schedule 2 to this Act from another company in relation to which that land was protected land when the other company held an appointment under that Chapter;
"public authority" means any Minister of the Crown or government department, the NRA, any local authority or county council or any person certified by the Secretary of State to be a public authority for the purposes of this Act;
"public sewer" means a sewer for the time being vested in a sewerage undertaker in its capacity as such, whether vested in that undertaker by virtue of a scheme under Schedule 2 to the [1989 c. 15.] Water Act 1989 or Schedule 2 to this Act or under section 179 above or otherwise, and "private sewer" shall be construed accordingly;
"railway undertakers" means the British Railways Board, London Regional Transport or any other person authorised by any enactment, or by any order, rule or regulation made under any enactment, to construct, work or carry on any railway;
"records" includes computer records and any other records kept otherwise than in a document;
"the relevant sewerage provisions" means the following provisions of this Act, that is to say--
(a)
Chapters II and III of Part IV (except sections 98 to 101 and 110 and so much of Chapter III of that Part as provides for regulations under section 138 or has effect by virtue of any such regulations);
(b)
sections 160, 171, 172(4), 178, 184, 189, 196 and 204 and paragraph 4 of Schedule 12; and
(c)
the other provisions of this Act so far as they have effect for the purposes of any provision falling within paragraph (a) or (b) of this definition;
"relevant undertaker" means a water undertaker or sewerage undertaker;
"resource main" means (subject to subsection (2) below) any pipe, not being a trunk main, which is or is to be used for the purpose of--
(a)
conveying water from one source of supply to another, from a source of supply to a regulating reservoir or from a regulating reservoir to a source of supply; or
(b)
giving or taking a supply of water in bulk;
"service pipe" means (subject to subsection (2) below) so much of a pipe which is, or is to be, connected with a water main for supplying water from that main to any premises as--
(a)
is or is to be subject to water pressure from that main; or
(b)
would be so subject but for the closing of some valve,

and includes part of any service pipe;
"services" includes facilities;
"sewer" includes (without prejudice to subsection (2) below) all sewers and drains (not being drains within the meaning given by this subsection) which are used for the drainage of buildings and yards appurtenant to buildings;
"sewerage services" includes the disposal of sewage and any other services which are required to be provided by a sewerage undertaker for the purpose of carrying out its functions;
"special administration order" has the meaning given by section 23 above;
"statutory water company" means any company which was a statutory water company for the purposes of the [1973 c. 37.] Water Act 1973 immediately before 1st September 1989;
"stopcock" includes any box or pit in which a stopcock is enclosed and the cover to any such box or pit;
"street" has, subject to subsection (5) below, the same meaning as in Part III of the [1991 c. 22.] New Roads and Street Works 1991;
"subordinate legislation" has the same meaning as in the [1978 c. 30.] Interpretation Act 1978;
"substance" includes micro-organisms and any natural or artificial substance or other matter, whether it is in solid or liquid form or in the form of a gas or vapour;
"supply of water in bulk" means a supply of water for distribution by a water undertaker taking the supply;
"surface water" includes water from roofs;
"trunk main" means a water main which is or is to be used by a water undertaker for the purpose of--
(a)
conveying water from a source of supply to a filter or reservoir or from one filter or reservoir to another filter or reservoir; or
(b)
conveying water in bulk, whether in the course of taking a supply of water in bulk or otherwise, between different places outside the area of the undertaker, from such a place to any part of that area or from one part of that area to another part of that area;
"underground strata" means strata subjacent to the surface of any land;
"vessel" includes a hovercraft within the meaning of the [1968 c. 59.] Hovercraft Act 1968;
"water main" means (subject to subsection (2) below) any pipe, not being a pipe for the time being vested in a person other than the undertaker, which is used or to be used by a water undertaker for the purpose of making a general supply of water available to customers or potential customers of the undertaker, as distinct from for the purpose of providing a supply to particular customers;
"watercourse" includes all rivers, streams, ditches, drains, cuts, culverts, dykes, sluices, sewers and passages through which water flows except mains and other pipes which belong to the NRA or a water undertaker or are used by a water undertaker or any other person for the purpose only of providing a supply of water to any premises.

(2) In this Act--

(a) references to a pipe, including references to a main, a drain or a sewer, shall include references to a tunnel or conduit which serves or is to serve as the pipe in question and to any accessories for the pipe; and

(b) references to any sewage disposal works shall include references to the machinery and equipment of those works and any necessary pumping stations and outfall pipes;

and, accordingly, references to the laying of a pipe shall include references to the construction of such a tunnel or conduit, to the construction or installation of any such accessories and to the making of a connection between one pipe and another.

(3) Nothing in Part III or IV of this Act by virtue of which a relevant undertaker owes a duty to any particular person to lay any water main, resource main or service pipe or any sewer, disposal main or discharge pipe shall be construed--

(a) as conferring any power in addition to the powers conferred apart from those Parts; or

(b) as requiring the undertaker to carry out any works which it has no power to carry out.

(4) References in this Act to the fixing of charges in relation to any premises by reference to volume are references to the fixing of those charges by reference to the volume of water supplied to those premises, to the volume of effluent discharged from those premises, to both of those factors or to one or both of those factors taken together with other factors.

(5) Until the coming into force of Part III of the [1991 c. 22.] New Roads and Street Works Act 1991, the definition of "street" in subsection (1) above shall have effect as if the reference to that Part were a reference to the [1950 c. 39.] Public Utilities Street Works Act 1950; but nothing in this section shall be taken--

(a) to prejudice the power of the Secretary of State under that Act of 1991 to make an order bringing Part III of that Act into force on different days for different purposes (including the purposes of this section); or

(b) in the period before the coming into force of that Part, to prevent references in this Act to a street, where the street is a highway which passes over a bridge or through a tunnel, from including that bridge or tunnel.

(6) 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.

(7) References in this Act to the later or latest of two or more different times or days are, in a case where those times or days coincide, references to the time at which or, as the case may be, the day on which they coincide.

(8) 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.

(9) Sub-paragraph (1) of paragraph 1 of Schedule 2 to the [1991 c. 60.] Water Consolidation (Consequential Provisions) Act 1991 has effect (by virtue of sub-paragraph (2)(b) of that paragraph) so that references in this Act to things done under or for the purposes of provisions of this Act or the [1991 c. 57.] Water Resources Act 1991 include references to things done, or treated as done, under or for the purposes of the corresponding provisions of the law in force before the commencement of this Act.

220 Effect of local Acts

Subject to any provision to the contrary which is contained in Schedule 26 to the Water Act 1989 or in the Water Consolidation (Consequential Provisions) Act 1991, nothing in any local statutory provision passed or made before 1st September 1989 shall be construed as relieving any relevant undertaker from any liability arising by virtue of this Act in respect of any act or omission occurring on or after that date.

Other supplemental provisions

221 Crown application

(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 relevant undertaker in the course of carrying out its functions; or

(c) for the purposes of any provision having effect by virtue of so much of section 167 above and Schedule 11 to this Act as relates to the granting of authority for discharges of water.

(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 [1990 c. 8.] 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 that section 293 as to the determination of questions shall apply for the purposes of this section.

222 Application to Isles of Scilly

(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 NRA or any relevant 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 NRA or by a relevant undertaker.

(3) Without prejudice to the generality of the power conferred by subsection (2) above, an order under this section may apply any provision of this Act, of the [1991 c. 60.] Water Consolidation (Consequential Provisions) Act 1991 or of the [1989 c. 15.] Water Act 1989 in relation to the Isles of Scilly with or without modifications.

(4) 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.

(5) An order under this section 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.

(6) Chapter IV of Part III of this Act, except section 90, shall apply to the Isles of Scilly as if the Council of the Isles of Scilly were a water undertaker and the Isles were the area of the undertaker.

(7) The exception of section 90 above from the provisions of subsection (6) above shall be without prejudice to the power to make provision by an order under this section in relation to that section.

223 Short title, commencement and extent

(1) This Act may be cited as the Water Industry Act 1991.

(2) This Act shall come into force on 1st December 1991.

(3) Except for the purpose of giving effect to any scheme under Schedule 2 to this Act, this Act extends to England and Wales only.

SCHEDULES

Section 1.

SCHEDULE 1 The Director General of Water Services

Remuneration, pensions etc.

1 (1) There shall be paid to the Director such remuneration, and such travelling and other allowances, as the Secretary of State may determine.

(2) In the case of any such holder of the office of the Director as may be determined by the Secretary of State, there shall be paid such pension, allowances or gratuities to or in respect of him, or such payments towards provision for the payment of a pension, allowances or gratuities to or in respect of him, as may be so determined.

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

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

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; and

(b) any expenses duly incurred by the Director or by any of his staff in consequence of the provisions of this Act.

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 [1868 c. 37.] 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.

Sections 10 and 23.

SCHEDULE 2 Transitional Provision on Termination of Appointments

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 replacing a company as a relevant undertaker; 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; 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(1) 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) 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 [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.

(6) 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.

Transfer of appointment

4 (1) 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 Chapter I of Part II of this Act which is held by the existing appointee.

(2) 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.

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