Local Government Act 1974

9 (1) In any case where it appears to the Secretary of State—

(a) that a Passenger Transport Executive or the London Transport Executive has before 1st April 1975 entered upon a course of expenditure of a capital nature such as is referred to in section 56(1) of the [1968 c. 73.] Transport Act 1968, and

(b) that the course of expenditure was entered upon in reliance on an undertaking by the Secretary of State to make a grant or grants towards that expenditure under that section,

the Secretary of State shall, as soon as practicable after 1st April 1975, give notice in writing to the appropriate local authority specifying the purpose of the expenditure, the Executive carrying it out and particulars of the grant or grants to which the undertaking relates, including the terms and conditions upon which the grant or grants were to be made and details of the amount or proportion thereof already paid at that date.

(2) An authority to whom a notice is given under sub-paragraph (1) above shall make to the Executive specified in the notice payments under subsection (2) of section 56 of the Transport Act 1968—

(a) corresponding in amount to the payments which, in accordance with the particulars specified in the notice, would have been made under the grant or grants concerned, and

(b) on terms and conditions corresponding, as near as may be, to those so specified,

and, in relation to the authority, expenditure for the purpose specified in die notice shall be conclusively presumed for the purposes of that subsection to be expenditure towards which payments may be made under that subsection.

(3) In sub-paragraph (1) above " the appropriate local authority ", in relation to a Passenger Transport Executive, means the county council which is the Passenger Transport Authority for the Executive's area and, in relation to the London Transport Executive, means the Greater London Council.