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    1.    In accordance with section 26(2) of the Pilotage Act 1987 the Pilotage Commission submitted, on 14th March 1989, to the Secretary of State a scheme for the winding-up of the Commission and the disposal of the property, rights and liabilities of the Commission and the arrangements to be made as respects its staff. The Scheme is set out in Schedule 1 to the Order.

    2.    This Order, made under section 26(3) of the Pilotage Act 1987, makes provision for the transfer of the property, rights and liabilities of the Pilotage Commission on its abolition and makes arrangements for the Commission's staff, in accordance with that Scheme subject to certain modifications which are set out in Schedule 2.

    3.    The modifications principally provide:
    (1)  that the Pilotage Commissioners (rather than the liquidators organising the winding-up) exercise the Commission's continuing function under s.28(8) of the Pilotage Act 1987 of determining disputes about entitlements to payment under pilots' compensation schemes;

    (2)  that competent harbour authorities will remain liable, in the same proportion that they receive assets, for any outstanding liabilities after the Commission's abolition (the Scheme provides for all known liabilities to be discharged before its completion); and

    (3)  that the Commission's assets (and functions) in connection with two Schemes under section 24 of the Pilotage Act 1987 (transfer of property, rights and liabilities of pilotage authorities to competent harbour authorities) are vested in the Secretary of State to deal with them in accordance with the respective Schemes. The two Schemes are the only uncompleted ones, following the abolition of pilotage authorities on 1st October 1988.