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Section 58 of the Act of 1968 shall have effect as if—
(a)in subsection (1) at the end there were added the words " ; and he may, in the circumstances mentioned in paragraph (aa) or (c) of subsection (3) of this section reduce the amount of any subsidy payable under Part I of the Housing (Financial Provisions) (Scotland) Act 1972 or suspend or discontinue the payment of such subsidy or part thereof. " ;
(b)in subsection (3) after paragraph (a) there were inserted the following paragraph—
“(aa)that the subsidy falls to be paid to a local authority and the Secretary of State is satisfied that the authority have failed to discharge any of their functions under Part II, III or IV of the Housing (Financial Provisions) (Scotland) Act 1972 ;”;
(c)in subsection (3)(c) after the word " made " there were inserted the words " or the subsidy falls to be paid ".
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