A local authority must make full compensation to a person who has sustained damage by reason of the exercise by a local authority, in relation to a matter as to which that person has not been in default, of any of its powers under this Measure.

Any dispute arising under this paragraph as to the fact of damage or as to the amount of compensation is to be determined by arbitration by a single arbitrator appointed by agreement between the parties, or in default of agreement by the Welsh Ministers.