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(1)The Secretary of State may serve on a local authority a notice requiring the authority to supply to him such information as is specified in the notice and is required by him—
(a)for the purpose of deciding whether to exercise his powers, and how to perform his functions, under this Part; or
(b)for the purpose of ascertaining whether an authority have acted, or are likely to act, in accordance with this Part; or
(c)for the purpose of assisting the formulation of government economic policies;
but no information shall be required for the purpose specified in paragraph (c) above unless it relates to, or to plans or proposals about, the finances and expenditure of the authority or of any company in which the authority have an interest.
(2)If the information specified in a notice under this section is in the possession or under the control of the authority on whom the notice is served, the authority shall supply the information required in such form and manner, and at such time, as is specified in the notice and, if the notice so requires, the information shall be certified (according as is specified in the notice) in one or both of the following ways,—
(a)by the chief finance officer of the authority, within the meaning of section 5 above, or by such other person as may be specified in the notice; and
(b)under arrangements made by the Audit Commission for Local Authorities in England and Wales.
(3)If a local authority fail to comply with subsection (2) above, the Secretary of State may decide—
(a)whether to exercise his powers, and how to perform his functions, under this Part, or
(b)whether the authority have acted, or are likely to act, in accordance with this Part,
on the basis of such assumptions and estimates as he thinks fit.
(4)In deciding—
(a)whether to exercise his powers, and how to perform his functions, under this Part, or
(b)whether an authority have acted, or are likely to act, in accordance with this Part,
the Secretary of State may also take into account any other information available to him, whatever its source and whether or not obtained under a provision contained in or made under this or any other enactment.
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