Part III Direct Labour Organisations
Financial provisions
16 General financial duty: treatment of deficits.
(1)
Every local authority or development body who undertake construction or maintenance work—
(a)
of any of the descriptions specified in subsection (2) of section 10 above; or
(b)
of any description specified by regulations under subsection (4) of that section,
whether under works contracts or by way of functional work or both, shall secure that, in respect of each financial year, F1such financial objective as the Secretary of State may specify for that year is met by their revenue (as adjusted in such manner as he may so specify) for all the work of that description which is carried out in that year.
F2(1A)
Where the Secretary of State specifies a financial objective under this section, he may define that objective by reference to such factors as he thinks fit.
[(2)
Subject to subsection (3) below, the rate of return on capital employed shall be determined for the purposes of this section by such method as the Secretary of State may direct.]
[(3)
The rate of return shall in all cases be determined on a current cost accounting basis.]
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3
(5), (6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4