(1)Where in any …F1 district …F1, a new town commission …F1
(a)after consultation with the [F2 district] council, and
(b)with the approval of the Ministry,
incur expenses in the carrying out, for the purposes of the new town, of development of a kind the carrying out of which in relation to that district …F1 is a function of the [F2 district] council, the [F2 district] council shall pay to the new town commission, on such terms as may be approved by the Ministry with the concurrence of the Ministry of Finance, a sum equal in amount to those expenses.
(2)Any question arising as to the amount payable by a [F2 district] council under subsection (1) shall be referred to arbitrationF3. . . .