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3. The following expenditure is hereby specified for the purposes of section 137(4B) of the Act (expenditure to be disregarded in determining whether a local authority has exceeded the spending limit set out in section 137(4)), namely, expenditure by a local authority on the provision of milk and milk products in schools to the extent that it is defrayed by any payment to the authority by the Intervention Board for Agricultural Produce in accordance with the school milk subsidy scheme of the European Economic Community.
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