(1)This section applies to an employer who is of any of the following descriptions, namely—
(a)a local authority, that is to say—
(i)in England or Wales, the council of a county, county borough, London borough or county district, the Greater London Council, the Common Council of the City of London or the Council of the Isles of Scilly;
(ii)in Scotland, a local authority within the meaning of the [1947 c. 43.] Local Government (Scotland) Act 1947;
(b)an authority all of whose members are appointed or elected by one or more local authorities ;
(c)an authority the majority of whose members are appointed or elected by one or more local authorities and in the case of whom, by virtue of any enactment—
(i)the authority have power to issue a precept to a local authority in England or Wales or a requisition to a local authority in Scotland ; or
(ii)a local authority are or can be required to contribute to the authority's expenses;
(d)the Receiver for the Metropolitan Police District or the Commissioner of Police of the Metropolis;
(e)the development corporation established for a new town or the Commission for the New Towns ;
(f)the Scottish Special Housing Association;
(g)statutory water undertakers within the meaning of the [1945 c. 42.] Water Act 1945 (other than for the purposes of Part II of that Act only);
(h)an internal drainage board within the meaning of the [1930 c. 44.] Land Drainage Act 1930.
(2)The appropriate Minister may make to any employer to whom this section applies such payments, at such times, and subject to such conditions, as he may with the consent of the Treasury think fit by reference to the amounts paid by way of selective employment tax in respect of employed persons employed by that employer in employments to which section 2 of this Act does not apply.
(3)The appropriate Minister may, with the consent of the Treasury, direct with respect to any employer to whom this section applies or who is of any class of such employers specified in the direction—
(a)that, subject to such conditions as may be specified in the direction, employed persons of any class so specified who are not employed by that employer or by a charity within the meaning of section 5 of this Act entitled to claim in respect of those persons under the said section 5 but who—
(i)if that employer is the council of a rural district, are employed by the council of a parish or borough included in that district; or
(ii)if that employer is an authority such as is mentioned in subsection (1)(a) or (b) of this section, are employed wholly or partly within that employer's area in employment appearing to the appropriate Minister to be in a public service,
shall be treated for the purposes of this section as employed by that employer or, where there is more than one relevant employer, by such one, or to such extent by such one and to such extent by such other or others, of those employers as may be specified in the direction;
(b)that, subject to such conditions as may be specified in the direction, employed persons employed by such an authority as is mentioned in subsection (1)(b) or (c) of this section shall be treated for the purposes of this section as employed by such one, or to such extent by such one and to such extent by such other or others, of the local authorities by whom members of that authority are appointed or elected as may be specified in the direction;
(c)that any employment specified in the direction shall be left out of account for the purposes of this section.
(4)In this section, the expression " the appropriate Minister " means—
(a)in relation to an employer in Scotland or in Wales or Monmouthshire, the Secretary of State ;
(b)in any other case, the Minister of Housing and Local Government.