(1)A new town corporation and any district council to whom directions have been given under section 44 above to make a transfer scheme shall, subject to subsection (2) below, endeavour within the time specified in the directions to agree with each other on the provisions to be included in the proposed scheme and to prepare it and submit it to the Secretary of State.
(2)The Secretary of State may on the application of the new town corporation or any district council to whom directions have been so given extend the time so specified.
(3)Where a proposed transfer scheme is submitted to the Secretary of State by a new town corporation and a district council in pursuance of directions under section 44, then—
(a)if it appears to the Secretary of State that the scheme substantially complies with the directions, he may, with the Treasury's consent but subject to subsection (7) below, approve the scheme, with or without modifications ; or
(b)he may in any event reject it.
(4)Where on consideration of any such scheme so submitted the Secretary of State approves the scheme without modifications or rejects it, he shall notify the corporation and council concerned of his decision.
(5)Where on consideration of any such scheme so submitted the Secretary of State proposes to approve it with modifications, he shall notify the corporation and council concerned of the modifications which he proposes to make and shall give them an opportunity to comment on the proposed modifications and send them a copy of the scheme as finally approved.
(6)Where—
(a)any such scheme is not submitted to the Secretary of State within the requisite time (that is, the time specified in the directions under section 44 or that time as extended under this section), or
(b)the Secretary of State rejects any such scheme submitted to him,
he may himself, with the Treasury's consent, make a transfer scheme which, subject to subsection (8) below, must be of a description which he has directed the corporation and council concerned to make ; but he shall—
(i)first send them a draft of the scheme, and give them an opportunity of commenting on the draft, and
(ii)also send them a copy of the scheme as finally made.
(7)If—
(a)any management arrangements included in a proposed transfer scheme submitted to the Secretary of State in pursuance of directions under section 44 appear to him to be unsatisfactory, or
(b)a proposed transfer scheme so submitted which was required by any such directions to include management arrangements fails to include them,
he may, instead of approving the scheme (where he has power to do so) or rejecting it, with the Treasury's consent, refer it back to the corporation and council concerned and give them directions under section 44 to make and submit the scheme to him again within a specified time without any management arrangements.
(8)If—
(a)no proposed transfer scheme is submitted to the Secretary of State within the requisite time, or
(b)he rejects a proposed transfer scheme so submitted which was required by directions under section 44 to include management arrangements and the ground of the rejection is that the scheme does not include any management arrangements or that any such arrangements so included appear to him to be unsatisfactory,
he may exercise his power of making a transfer scheme under subsection (6) above without including any management arrangements.