(1)The Welsh Ministers may direct the Independent Remuneration Panel for Wales (“the Panel”) that it must perform the relevant functions—
(a)in relation to a shadow authority, and
(b)in relation to a principal local authority for the first financial year in which it will be a principal local authority by virtue of merger regulations or provisions of an Act of the National Assembly for Wales.
(2)The relevant functions are the functions under—
(a)section 142 (powers and duties relating to payments to members), and
(b)section 143 (functions relating to members’ pensions),
of the Local Government (Wales) Measure 2011.
(3)Accordingly Part 8 of that Measure applies in the case of a shadow authority in relation to which a direction has been given under subsection (1)(a) (for so long as the direction has effect) as if it were a relevant authority within the meaning of that Part of that Measure; but in its application by virtue of this subsection Part 8 has effect subject to—
(a)the modifications in subsection (4), and
(b)section 26.
(4)The modifications are that—
(a)in section 142(8) (account to be taken of financial impact on relevant authorities) the reference to “relevant authorities” is to include shadow authorities, and
(b)the power for an annual report to impose requirements under section 150(1) (avoidance of duplication of payments etc.) is to be a duty for an annual report or supplementary report to impose those requirements.
(5)In exercising functions by virtue of this section in relation to the first financial year in which an authority is a principal local authority by virtue of merger regulations, the Panel may—
(a)make different decisions under section 142(1),
(b)set different amounts under section 142(3),
(c)make different determinations under section 142(4),
(d)set different percentages or other rates or indices under section 142(6), and
(e)make different decisions under section 143(2) and (3),
in relation to times before and after the principal local authority will consist of councillors elected at the first ordinary election of councillors.