5.—(1) The Scottish Ministers may deduct from the grants which would otherwise be payable under these Regulations the whole, or such part as they determine to be reasonable, of any sum being a receipt of the police authority in connection with or arising out of the discharge of a civil defence function of the police authority or of any sum which they determine ought to have been so received.
(2) Without prejudice to the generality of paragraph (1) above, and subject to paragraph (3) below, the Scottish Ministers may deduct from the grants which would otherwise be payable to a police authority under these Regulations such sum as they determine to be reasonable where they determine that–
(a)any article which has been acquired by the police authority with the aid of grant for the purposes of their civil defence functions; or
(b)any article which the police authority has been provided free on loan by any government department,
is no longer required in connection with a civil defence function of the police authority and is not required in connection with any other civil defence function of the authority.
(3) No deduction shall be made under paragraph (2) above in relation to any article provided free on loan if the article has been surrendered to the Scottish Ministers or to such person as they may direct.
(4) In determining the amount, if any, to be deducted under this regulation, the Scottish Ministers shall have regard to all relevant circumstances.