13Subsidy

13 Subsidy

13 Subsidy

(1) A local authority within whose area a library, library service or information service is provided, controlled and managed in accordance with this Act shall, subject to this Act, be entitled to subsidy under this section.

(2) A local authority shall be eligible for subsidy under this section if during the year for which the subsidy is payable it expends out of rate income upon the provision, control and management of libraries, library services and information services in its area, not less than the larger of the following amounts, namely—

(a) An amount equivalent to the product of a rate upon the unimproved capital value of all ratable land within its area—

(i) in the case of an area that (immediately before the commencement of the Local Government Act 1993) was a municipality—of one-tenth of one cent in the dollar,

(ii) in the case of an area that (immediately before the commencement of the Local Government Act 1993) was a shire—of one twenty-fifth of one cent in the dollar.

(b) An amount equivalent to the sum of ten cents for each person resident within the area of the local authority—

Provided that in any case where the amount referred to in paragraph (a) is greater than an amount equivalent to the sum of fifteen cents for each person resident within the area of the local authority, the local authority shall be eligible for subsidy if it so expends not less than the last-mentioned amount.

(3) A local authority shall not be eligible for subsidy under this section unless the library, library service or information service so provided, controlled and managed is in the opinion of the Council reasonably capable of meeting the requirements of the persons resident in its area.

(3A) Where a local authority has failed to comply with the requirements of sections 10 and 10A during the year preceding the day on which it lodges an application for subsidy with the Council under section 14, the local authority shall not be eligible for subsidy for the year to which the application relates if the Minister so directs by order in writing served on the local authority.

(4) Where a local authority is eligible for subsidy under this section the subsidy payable to the local authority in respect of any year shall be—