Schedule 2 – Compensation for changing or revoking infrastructure consent orders
380.Schedule 2 is introduced by section 93 and makes provision about compensation for changing or revoking an infrastructure consent order.
Paragraph 1 – Changing or revoking an infrastructure consent order: compensation
381.Where an infrastructure consent order is changed or revoked by the Welsh Ministers without an application being made, this paragraph gives a right to compensation for certain losses to persons with an interest in land to which the infrastructure consent order relates, persons with an interest in minerals on such land or persons for whose benefit the infrastructure consent order has effect.
382.On making a claim to the Welsh Ministers, those persons are entitled to be paid compensation by the Welsh Ministers for any expenditure that has been incurred in carrying out work (including certain preparatory work described in sub-paragraph (4)) which is rendered abortive by the change to, or the revocation of, the infrastructure consent order.
383.Those persons are also entitled, on making a claim, to be paid compensation by the Welsh Ministers for any other loss or damage which is directly attributable to the change or revocation.
384.Sub-paragraph (5) specifies that compensation is not payable in respect of certain works and losses.
385.The Welsh Ministers may make regulations about the timeframe and the process for making a claim for compensation under this paragraph.
Paragraph 2 – Compensation for depreciation: introduction and key terms
386.This paragraph provides that paragraphs 3 to 9 apply where compensation for depreciation of more than the minimum amount specified in regulations becomes payable.
387.“Compensation for depreciation” in this paragraph (and paragraphs 3 to 10) means compensation payable in respect of loss or damage consisting of depreciation of the value of an interest in land.
388.This paragraph also sets out other definitions for the purposes of paragraphs 2 to 10.
Paragraph 3 – Apportionment of compensation for depreciation and determination of disputes
389.This paragraph makes provision about apportionment of compensation for depreciation and disputes about such apportionment.
390.Sub-paragraph (1) requires the Welsh Ministers to apportion the compensation for depreciation between different parts of the land to which the claim for compensation relates if they consider it practicable to do so and also requires them to give details of any such apportionment to the claimant and any persons they consider to be substantially affected by the apportionment.
391.Sub-paragraph (2) details how, in carrying out the apportionment, the Welsh Ministers must divide the land into parts and distribute compensation for depreciation between those parts according to how the Welsh Ministers consider those parts are affected by the order that caused compensation to be payable.
392.Sub-paragraph (3) details the persons who may refer a dispute about apportionment of compensation to the Upper Tribunal and sub-paragraph (4) details the persons who are entitled to be heard by the Upper Tribunal.
393.Sub-paragraphs (5), (6) and (7) make rules that apply on a reference of a dispute on apportionment to the Upper Tribunal.
Paragraph 4 – Notice of compensation for depreciation
394.This paragraph details the process to be followed when compensation for depreciation becomes payable.
395.When compensation for depreciation becomes payable, the Welsh Ministers must serve a “compensation notice” on a council of the county or county borough for the area in which the land or any part of the land to which the notice relates is situated, and (if that council is not the planning authority for the area) on the planning authority for the area.
396.Sub-paragraph (2) sets out what a compensation notice must include, and sub-paragraph (3) states that a compensation notice is a local land charge.
Paragraph 5 – Development not to be carried out until compensation paid or secured
397.This paragraph prohibits a person from carrying out certain development on land in respect of which a compensation notice has been registered until any amount that is recoverable in respect of the compensation specified in the notice has been paid or secured to the satisfaction of the Welsh Ministers.
398.Sub-paragraph (2) details the development to which the prohibition applies. And sub-paragraphs (3) and (4) set out the circumstances in which the prohibition does not apply.
Paragraph 6 – Amount recoverable by Welsh Ministers in respect of compensation
399.This paragraph sets out the rules that apply to determine the amount that is recoverable by Welsh Ministers in respect of compensation specified in a registered compensation notice.
Paragraph 7 – Payment etc. of amount recoverable
400.Sub-paragraph (1) provides that an amount recoverable is payable to the Welsh Ministers as a single capital payment, as a series of instalments of capital and interest combined or as a series of other annual or periodical payments as the Welsh Ministers may direct. Sub-paragraph (2) details the duties on the Welsh Ministers to take representations into account before they exercise their direction-making power under sub-paragraph 1(c).
401.Sub-paragraph (3) provides that if the amount payable is not paid as a single capital payment, it must be secured in such way that the Welsh Ministers direct.
402.If a person begins development in breach of paragraph 5, under sub-paragraph (4) the Welsh Ministers have the power to serve a notice on the person specifying the amount they consider to be recoverable under paragraph 6 and requiring the person to pay that amount within a period specified in the notice.
Paragraph 8 – Recovery of compensation from acquiring authority on compulsory acquisition or sale
403.This paragraph makes provision about the circumstances in which the Welsh Ministers are entitled to recover compensation from an acquiring authority. This paragraph also makes provision about the amount that is recoverable.
Paragraph 9 – General provisions about compensation for depreciation
404.This paragraph makes general provision about compensation for depreciation and provides that the rules in section 5 of the Land Compensation Act 1961 (rules for assessing compensation) apply for the purpose of assessing compensation for depreciation that is payable under this Schedule. This paragraph also makes various specific provisions about compensation for depreciation where an interest in land is subject to a mortgage.
Paragraph 10 – Determination of claims for compensation
405.This paragraph requires any question of disputed compensation to be referred to and determined by the Upper Tribunal.
