New Towns Act 1981

40 Transfer of sewerage and sewage disposal undertakings to water authorities

(1) A development corporation for a new town who have, in pursuance of an order under section 34 above, been carrying on a sewerage or sewage disposal undertaking may—

(a) by agreement with a water authority, and

(b) with the consent of the Secretary of State and the Treasury,

transfer the whole or any part of the undertaking to that authority.

(2) An order made by the Secretary of State—

(a) may provide for the transfer to a water authority of the whole or any part of a sewerage or sewage disposal undertaking which has, in pursuance of an order under section 34, been carried on by the development corporation ; and

(b) may contain such incidental, consequential and supplemental provisions as the Secretary of State thinks necessary or expedient for the purposes of the order.

(3) The terms on which the whole or any part of an undertaking is transferred by an order under this section—

(a) shall be such as the Secretary of State, with the Treasury's consent, may specify in the order, and

(b) may provide for the payment by the water authority of such sums, to be satisfied in such manner, as may be so specified,

but the total of the sums so paid shall not exceed the total capital cost of the undertaking less depreciation written off.

(4) Before making an order under this section the Secretary of State shall consult with the water authority and with any other authority appearing to him to be concerned.

(5) The Secretary of State shall give notice of any order which he proposes to make under this section—

(a) to the water authority, and

(b) to the development corporation,

and if within 28 days after he has given such notice either of them gives notice to him that they object to the proposal, and the objection is not withdrawn, the order shall be subject to special parliamentary procedure.