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3.—(1) The provisions of Chapter III of Part I of the Education Reform Act 1988 shall apply to a new LEA in the financial year commencing on the reorganisation date with the modifications set out below in this regulation and in regulation 7.
(2) In section 33(3)—
(a)for paragraph (a) there shall be substituted—
“(a)it is a county, voluntary or special school maintained by that authority at the beginning of that year; or”; and
(b)in paragraph (b) for the words “or voluntary” in both places where they occur there shall be substituted the words “, voluntary or special” .
(3) In section 34(4)(c)(ii) before the word “authority” there shall be inserted the word “transferor” .
(4) Section 40 shall not apply.
(5) Section 42(6) shall not apply to a new LEA in the financial year commencing on the reorganisation date in respect of the preceding financial year except that such an authority specified in the Schedule to these Regulations or in a section 17 order as the designated authority for that purpose shall prepare and furnish the statement required by the said sub-section in respect of such local education authority, wound up and dissolved by a section 17 order, as may be specified in that Schedule or in that section 17 order, as the case may be.
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