For the purposes of this section the Secretary of State may designate such body appearing to him to be representative of local authorities as he considers appropriate (in this section referred to as “the advisory body”) to consider any increase made or proposed to be made by an existing local authority outside Greater London in the remuneration of any of their employees.

For the purpose of enabling them to carry out their functions under this section, the advisory body shall consult and seek information from new and existing local authorities outside Greater London; and, if requested to do so by the advisory body, the Secretary of State may give a direction to any such local authority requiring them to furnish to the advisory body such information as may be specified in the direction relating to the remuneration and other terms and conditions of employment of such employees of the local authority as may be so specified.

If it appears to the advisory body that an existing local authority outside Greater London has fixed or proposes to fix for any employee or class of employee of theirs a rate of remuneration which, having regard to any recommended levels of remuneration formulated on a national basis by representatives of local authorities and employees of local authorities, is greater than that which the advisory body considers appropriate for that employee or class of employees, they shall notify the local authority concerned and recommend to them the rate of remuneration which should be paid to the employee or class of employees concerned.

If it appears to the advisory body that an existing local authority outside Greater London to whom they have made a recommendation under subsection (3) above are not complying with that recommendation, then, after giving notice in writing to the local authority concerned of their intention to do so, they may refer the matter to the Secretary of State, and on such a reference the Secretary of State, after consultation with such persons appearing to him to be representative of local authorities and of employees of local authorities as he considers appropriate in relation to the employee or class of employees concerned, may give a direction to that local authority requiring them, with effect from such date as may be specified in the direction (not being earlier than the date on which notice was given to them by the advisory body), to pay such employee or class of employees of theirs as was the subject of the recommendation and as may be so specified remuneration at the rate recommended by the advisory body under subsection (3) above and specified in the direction.

It shall be the duty of any local authority to whom a direction is given under subsection (2) or subsection (4) above to comply with the direction.

If at any time in the period of three months beginning on 1st April 1974 it appears to the advisory body that the remuneration paid at any time before that date to any employee or class of employees of an existing local authority outside Greater London was such that, if that authority had not ceased to exist, the advisory body would have made a recommendation to the authority under subsection (3) above or, having made such a recommendation before that date, would have referred the matter to the Secretary of State under subsection (4) above, they shall notify the Secretary of State and report to him the rate of remuneration which in their opinion should have been paid to the employees or class of employees concerned immediately before 1st April 1974, or such earlier date as may be specified in the report, being the date on which the employee or employees ceased to be employed by the local authority concerned.

On receiving a report under subsection (6) above the Secretary of State may, after such consultation as is specified in subsection (4) above, by order provide that, for the purposes of the provisions of this Act relating to transfer of officers and compensation for loss of office F1or for the purposes of the provisions of F2section 44 of the National Health Service Reorganisation Act 1973 and section 24 of the M1Superannuation Act 1972 (which among other things relate to compensation for loss of office), the employee or class of employees to whom the report relates and who are specified in the order shall be deemed to have been receiving, immediately before 1st April 1974 or such earlier date as may be specified in the report, remuneration at the rate stated in the report and specified in the order, but no order shall be made under this subsection after the end of September 1974.