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(1)For section 61 of the 1990 Act there is substituted—
(1)The Secretary of State shall, in the year 1998 and in each subsequent year, pay to the Welsh Authority the prescribed amount as increased by the appropriate percentage.
(2)In this section “the prescribed amount” means the 1997 amount or such amount as may from time to time be prescribed under subsection (4).
(3)In this section “the 1997 amount” means the amount paid by the Secretary of State to the Welsh Authority by way of interim payment for the year 1997 (under this section as originally enacted).
(4)The Secretary of State may, if he is satisfied that it is appropriate to do so having regard to the cost to the Welsh Authority of transmitting S4C and the service referred to in section 57(1A)(a), by order provide that the prescribed amount is to be an amount which is greater than the 1997 amount and is specified in the order.
(5)Before making an order under subsection (4) the Secretary of State shall consult the Welsh Authority.
(6)In this section “the appropriate percentage”, in relation to any year (“the relevant year”), means the percentage which corresponds to the percentage increase between—
(a)the retail prices index for November 1996, and
(b)the retail prices index for the month of November in the year preceding the relevant year;
and for this purpose “the retail prices index” has the same meaning as in section 19(10).
(7)Any sums required by the Secretary of State under this section shall be paid out of money provided by Parliament.
(8)An order shall not be made under subsection (4) unless a draft of the order has been laid before and approved by a resolution of each House of Parliament.”
(2)In section 62 of the 1990 Act for “sections 26 and 61” there is substituted “ section 26 ”.
(3)Subsections (1) and (2) shall not have effect in relation to payments for any year before 1998.
(4)No payment shall be made to or by the Welsh Authority under subsection (3) or (4) of section 61 of the 1990 Act (as originally enacted) for the year 1997; and in this subsection “ ” has the same meaning as in the 1990 Act.
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