(1)    The Secretary of State may make a property transfer scheme or a staff transfer scheme in connection with—

(a)    the establishment or abolition of a body by this Act, or

(b)    the modification of the functions of a body or other person by or under this Act.

(2)    A property transfer scheme is a scheme for the transfer from a body or other person mentioned in the first column of the Table in Schedule 22 of any property, rights or liabilities, other than rights or liabilities under or in connection with a contract of employment, to a body or other person mentioned in the corresponding entry in the second column.

(3)    A staff transfer scheme is a scheme for the transfer from a body or other person mentioned in the first column of the Table in Schedule 23 of any rights or liabilities under or in connection with a contract of employment to a body or other person mentioned in the corresponding entry in the second column.

(4)    The Secretary of State may direct the Board or a qualifying company to exercise the functions of the Secretary of State in relation to the making of a property transfer scheme or a staff transfer scheme in connection with the abolition of—

(a)    one or more Primary Care Trusts specified in the direction, or

(b)    one or more Strategic Health Authorities so specified.

(5)    Where the Secretary of State gives a direction under subsection (4), the Secretary of State may give directions to the Board or (as the case may be) the company about its exercise of the functions.

(6)    For the purposes of this section and section 301—

(a)    an individual who holds employment in the civil service is to be treated as employed by virtue of a contract of employment, and

(b)    the terms of the individual's employment in the civil service are to be regarded as constituting the terms of the contract of employment.

(7)    In this section and sections 301 and 302 references to the transfer of property include references to the grant of a lease.

(8)    In this section and Schedules 22 and 23, “qualifying company” means—

(a)    a company which is formed under section 223 of the National Health Service Act 2006 and wholly or partly owned by the Secretary of State or the Board, or

(b)    a subsidiary of a company which is formed under that section and wholly owned by the Secretary of State.

(9)    In section 301 and Schedules 22 and 23—

“local authority” means—

(a)    a county council in England;

(b)    a district council in England, other than a council for a district in a county for which there is a county council;

(c)    a London borough council;

(d)    the Council of the Isles of Scilly;

(e)    the Common Council of the City of London;

“public authority” means any body or other person which has functions conferred by or under an Act or by royal charter.