If it appears to a local authority that occasion has arisen for a report on overcrowding in their district, or any part thereof, in addition to the report made by them under subsection (1) of section fifty-seven of the Housing Act, 1936, before the commencement of this Act, or the Minister so directs, it shall be the duty of the authority to cause a further inspection to be made and to prepare and submit a report showing the result of the inspection and the number of new houses required in order to abate overcrowding in the district or the part of the district and, unless they are satisfied that the required number of new houses will be otherwise provided, to prepare and submit to the Minister proposals for the provision thereof.

Where the Minister gives a direction under this section he may, after consultation with the local authority, fix dates before which the performance of the said duties is to be completed.