Any public authorities affected by an order under this Part may from time to time make agreements with respect to—
any property, income, rights, liabilities or expenses (so far as affected by the order) of the parties to the agreement; or
any financial relations between those parties.
Such an agreement may provide—
for the transfer or retention of any property, rights and liabilities, with or without conditions, and for the joint use of any property;
for the making of payments by any party to the agreement in respect of—
property, rights and liabilities transferred or retained,
the joint use of any property, or
remuneration or compensation payable to any person;
and
for the making of any such payment either by way of a capital sum or of a terminable annuity.
In default of agreement as to any disputed matter, the matter shall be referred to the arbitration of a single arbitrator agreed on by the parties or, in default of agreement, appointed by the Secretary of State; and the award of the arbitrator may make any provision that might be contained in an agreement under this section.
In subsection (3) above "disputed matter" means any matter which—
might be the subject of provision contained in an agreement under this section; and
is the subject of such a dispute between two or more public authorities as is not resolved by or under provision contained in any order under this Part.