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8.—(1) This article shall apply in the case of any allowances granted in respect of a period ending not later than 31st October 1989 in the case of which–
(a)disregarding this article, article 7 would apply otherwise than by virtue of paragraph (5) thereof, and
(b)if article 7 did not apply, article 6 would apply,
in this article referred to as “the relevant allowances”.
(2) Where the authority–
(a)has made estimates of its likely subsidy in respect of the relevant allowances on the basis of proposals made by the Secretary of State as to the provisions now made by article 6 and Schedule 3 (disregarding the reference in article 6(4) to article 7), and
(b)has good reason for not making the calculations required by Schedule 4,
then in the case of the relevant allowances article 7 shall not apply and, accordingly, article 6 shall apply.
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