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(1)The Secretary of State may, if he thinks fit, and upon such conditions (if any) as he thinks fit to impose, exempt any ship from any specified requirement of, or prescribed under, this Act other than Chapter II of Part VI, or dispense with the observance of any such requirement in the case of any ship, if he is satisfied, as respects that requirement, of the matters specified in subsection (2) below.
(2)Those matters are—
(a)that the requirement has been substantially complied with in the case of that ship or that compliance with it is unnecessary in the circumstances; and
(b)that the action taken or provision made as respects the subject-matter of the requirement in the case of the ship is as effective as, or more effective than, actual compliance with the requirement.
(3)The Secretary of State shall annually lay before both Houses of Parliament a special report stating—
(a)the cases in which he has exercised his powers under this section during the preceding year; and
(b)the grounds upon which he has acted in each case.
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