If a local authority—
has provided a computer for the purpose of enabling the authority to perform any of its functions other than functions under this section; and
considers that the computer can, without detriment to its use for that purpose, be used for the benefit of the authority in pursuance of the following provisions of this section,
the authority may enter into agreements with other persons for the provision by the authority of facilities for using the computer or of services provided by means of the computer.
An agreement in pursuance of this section may contain such terms as to payment or otherwise as the parties consider appropriate; and it shall be the duty of a local authority, in settling the terms of such an agreement, to ensure that they are terms on which the authority considers that a person other than a local authority could reasonably be expected to provide the facilities or services in question.
In this section "computer" means any device for storing and processing information.