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Transport Act 1981

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8(1)The Council shall, if they have not done so before the passing of this Act, make a scheme (referred to in this paragraph as the “compensation scheme”) for the payment of compensation, whether by way of a lump sum or periodic payments or by a combination of those methods, to or in respect of persons employed by them who suffer loss of employment which is properly attributable to the winding up of the Council.E+W+S

(2)The compensation scheme must—

(a)provide for the payment of compensation to be at the discretion of the Council; and

(b)include provision for an appeal body to determine questions arising.

(3)For the avoidance of doubt, it is declared that the expenses of the Council in making payments under the compensation scheme are administrative expenses of the Council within section 4 of the M1Harbours Act 1964 (under which such expenses may be funded by charges imposed on harbour authorities); and that the Council’s borrowing powers under section 5 of that Act are exercisable for the purpose of making such payments.

(4)As from the appointed day—

(a)the administration of the compensation scheme is the responsibility of the Secretary of State, subject to any direction under sub-paragraph (5); and

(b)the expenses of administering the scheme and of making payments under it shall be defrayed by the Secretary of State.

(5)The Secretary of State may direct that the compensation scheme be administered by such person as may be specified in the direction; and a direction under this sub-paragraph may be revoked or varied by the Secretary of State by a further direction under this sub-paragraph.

(6)The Secretary of State may make such amendments to the compensation scheme as appear to him necessary or expedient in consequence of the winding up of the Council or of the transfer of the administration of the scheme under or by virtue of this paragraph.

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