3. For regulation 1 of the principal Regulations there shall be substituted the following regulation:–
1.—(1) Subject to paragraph (2) below, there shall be payable by the designated Minister towards the expenses incurred by each local authority and police authority in or in connection with the discharge of their civil defence functions grants to that authority in accordance with the succeeding provisions of these regulations.
(2) No grants shall be payable towards expenses incurred for any purpose by a local authority or police authority which would have been incurred for that purpose if no civil defence functions had been conferred on that authority and which the designated Minister determines are not of an administrative nature.”.