Regulation 3 Expenses

All expenses incurred by the designated body for Scotland in connection with the discharge of its functions under Part II of the 1975 Act shall, in relation to the financial year 1988-89, be defrayed by regional and islands councils in proportion to their respective products of a rate of one penny in the pound or standard penny rate products, whichever in each case is the higher, for that year, which products shall be as first estimated by the Secretary of State for the purposes of section 12 of the Local Government (Scotland) Act 1966^f1.