A fire authority may make arrangements with any other fire authority or other persons who maintain a fire brigade so as to secure, by the provision of services by the other fire authority or persons, the discharge of all or any of the first-mentioned fire authority’s functions under this Act in respect of all or any part of its area, and arrangements under this subsection may make provision with respect to the terms as to payments or otherwise on which the services in question are to be provided:

Any fire authority who have requested, or have been requested by, another fire authority to enter into arrangements under the last foregoing subsection, or to vary or cancel any such arrangements, may, in the absence of agreement between them, request the Secretary of State to determine what arrangements, if any, should be entered into or, as the case may be, what variation, if any, should be made or whether the arrangements should be cancelled.

Where it appears to the Secretary of State expedient with a view to securing greater efficiency that it is for consideration whether arrangements under subsection (1) of this section should be entered into by two fire authorities or whether any such arrangements should be varied or cancelled, he may give notice to the authorities accordingly.

Where a request is made to the Secretary of State under subsection (2) of this section, or notice is given by the Secretary of State under the last foregoing subsection, he shall afford an opportunity to the fire authorities concerned to make representations and, if he thinks fit or if any of those authorities request him so to do, shall cause a public local inquiry to be held.

If the Secretary of State is satisfied, after considering any representations made under the last foregoing subsection and, if an inquiry is held, the report of the person by whom the inquiry was held, that it is expedient with a view to securing greater efficiency F4. . . that arrangements should be made for the provision of services as mentioned in subsection (1) of this section F5or that such arrangements should be varied or cancelled, he may direct that the fire authorities shall enter into such arrangements as may be specified in the direction F6or, as the case may be, shall make such variations in the arrangements as may be so specified or shall cancel the arrangements.