(1)With a view to securing that the functions of a new authority are discharged economically, efficiently and effectively in the period beginning with its establishment and ending three years after the abolition date, the Secretary of State may by regulations provide for the submission to him by the authority, or the making by him, of schemes with respect to the discharge of those functions so far as concerned with any of the matters to which this section applies; and it shall be the duty of the authority to discharge those functions in that period in accordance with any such scheme as approved or made by the Secretary of State and for the time being in force.
(2)This section applies to—
(a)the number of persons employed by the authority or employed by it for a particular purpose;
(b)the authority’s arrangements for obtaining any services (so far as not provided by its employees) or any supplies or facilities that it may require or may require for any particular purpose;
(c)the authority’s organisation and its arrangements for managing its affairs.
(3)This section also applies, in the case of a police authority, to the number of persons constituting the establishment of the police force maintained by the authority, and in the case of a fire authority, to the number of persons constituting the establishment of any fire brigade maintained by it; and section 4(2) of the M1Police Act 1964 and section 19 of the M2Fire Services Act 1947 (which relate to those matters) shall have effect subject to the provisions of this section.
(4)Regulations under this section may contain such supplementary provisions as the Secretary of State thinks necessary or expedient, including provisions with respect to the procedure to be followed in the preparation and submission of schemes, or for enabling him to approve a scheme with modifications or to vary a scheme approved or made by him; and the regulations may also contain any transitional provisions that he thinks necessary or expedient in connection with the termination of the period mentioned in subsection (1) above.
(5)The Secretary of State shall lay before Parliament copies of any scheme made, approved or varied by him under this section.