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Paragraph 3

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

For each year of the contract other than the first, the local authority shall adjust, as the case may be, the amount mentioned in paragraph 2(c)(i) or the amount mentioned in paragraph 2(c)(ii) in accordance with the following provisions.

(2)

In the second year of the contract the adjustment shall be calculated by dividing the said amount by the figure produced in accordance with the formula—

1+i100
(3)

In each subsequent year of the contract the adjustment shall be calculated by dividing the said amount by the figure produced in accordance with the formula—

(1+i100)n

where

  • n is 2 in the third year of the contract, 3 in the fourth year and increases by 1 in each subsequent year.

(4)

For the purposes of these provisions i means the figure in Table 2 of Economic Trends published by the Central Statistical Office as the most recent percentage change, quarter on corresponding quarter of previous year of the implied gross domestic product deflator at factor cost.