(1) A function or power of government at one level may be transferred to a government at the other level by agreement between the governments if--

(a) the function or power would be more effectively performed or exercised by the receiving government; and
(b) the transfer of the function or power is not prohibited by the legislation under which it is to be performed or exercised.

(2) If a function or power is transferred from a government at one level to a government at the other level--

(a) arrangements shall be put in place to ensure that the resources necessary for the performance of the function or exercise of the power are transferred; and
(b) constitutional responsibility for the performance of the function or exercise of the power shall remain with the government to which it is assigned by the Fourth Schedule.