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(1)The Secretary of State may, with the consent of the Treasury, agree to indemnify any statutory water undertaker in respect of such of any of the following as he thinks fit, that is to say—
(a)liabilities incurred by the undertaker in connection with anything done by the undertaker for the purpose of increasing the fluoride content of any water supplied by the undertaker;
(b)costs or expenses which are incurred by the undertaker, or for which the undertaker is liable, in connection with any proceedings which have been or may be brought by any person with respect to—
(i)things done for the purpose of increasing the fluoride content of any water; or
(ii)a proposal to increase the fluoride content of any water;
(c)expenditure incurred by the undertaker in complying with an order made in any such proceedings;
(d)liabilities transferred to the undertaker in accordance with a scheme under Schedule 2 or 5 to this Act which, in relation to the person from whom they were transferred, were liabilities falling within paragraph (a) above or liabilities in respect of costs, expenses or other expenditure mentioned in sub-paragraph (b) or (c) above.
(2)In this section “statutory water undertaker” means—
(a)any water undertaker or, in relation to any time before the transfer date, any water authority or any statutory water company within the meaning of the 1973 Act; or
(b)any water authority within the meaning of the [1980 c. 45.] Water (Scotland) Act 1980.
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