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18.—(1) Expenditure on milk, meals and other refreshment pursuant to section 512 or 513 of the 1996 Act subject to sub-paragraphs (2) and (3) below.
(2) A local education authority may not deduct expenditure referred to in sub-paragraph (1) above in relation to schools which are, or were immediately before 1st April 1999, grant-maintained or grant-maintained special schools.
(3) A local education authority may only deduct expenditure in the financial year beginning on 1st April 1999 on meals and other refreshment referred to in sub-paragraph (1) above in relation to any other secondary school maintained by the authority where it relates to a service provided to the school under—
(a)a contract between the authority and a third party for the carrying out of the service in question; or
(b)an arrangement whereby the authority’s direct labour organisation or a similar organisation carries out that service,
in force in the financial year beginning on 1st April 1999.
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