The following section shall be inserted after that section:—

“173A Right to opt for financial loss allowance.

(1)

If a councillor gives notice in writing to the local authority of which he is a member that he wishes to receive financial loss allowance, he shall be entitled, subject to and in accordance with the following provisions of this section, to receive that allowance instead of any payment by way of attendance allowance to which he would otherwise be entitled.

(2)

A notice under this section is referred to in this section as a “financial loss allowance notice".

(3)

If a councillor gives a financial loss allowance notice to the local authority not later than the end of the period of four weeks from his election as a member of the authority, he shall be enititled to receive financial loss allowance for the performance of any approved duty since his election, whether performed before or after giving of the notice.

(4)

If a councillor who has not given the local authority a financial loss allowance ntoice in accordance with subsection (3) above gives them such a notice not less than three months before the beginning of a financial year, he shall be entitled to receive financial loss allowance for the perofrmance of any approved duty performed not earlier than the beginning of that financial year.

(5)

A financial loss allowance notice shall continue to have effect until the councillor ceases to be a member of the local authority or until a notice under subsection (6) below takes effect, whichever occurs first.

(6)

If not less than three months before the beginning of a financial year a councillor who has given the local authority of which he is a member a financial loss allowance notice gives them notice in writing that he withdraws that notice, he shall be entitled to receive payments by way of attendance allowance, instead of financial loss allowance, for the performance of any approved duty after the beginning of the financial year following the giving of the notice.”