(1)Where a controlled school becomes an aided school by virtue of an order under section 54, the governing body shall pay to the local education authority, in accordance with the order, an amount by way of compensation for relevant capital expenditure incurred in respect of the school by the authority or a predecessor of theirs.
(2)In subsection (1) “relevant capital expenditure” means—
(a)expenditure incurred under section 60 (or under paragraph 1 of Schedule 1 to the [1946 c. 50.] Education Act 1946) in providing buildings which form part of the school premises;
(b)expenditure incurred under section 63 (or under section 2 of the [1953 c. 33.] Education (Miscellaneous Provisions) Act 1953) in defraying expenses of establishing the school; or
(c)expenditure incurred under section 64 (or under section 1 of the Education Act 1946) in defraying expenses of enlarging the school.
(3)The amount payable by way of compensation under this section shall be—
(a)such as may be agreed by the governing body and the local education authority, or
(b)failing such agreement, such as the Secretary of State thinks fit, having regard to the current value of the property in question.
(4)The Secretary of State may, for the purpose of assisting him in any determination which he is required to make under subsection (3), appoint such person as he thinks competent to advise him on the valuation of property.
(5)No contribution, grant or loan shall be paid, or other payment made, by the Secretary of State to the governing body of a controlled school in respect of any compensation payable by them under this section.