The Secretary of State may, for the purposes of this Chapter, by regulations make provision for things done by or to a body mentioned in subsection (2) to be treated, in such cases and to such extent as the regulations may provide, as done by or to a local authority specified in, or determined in accordance with, the regulations.
Those bodies are—
a Passenger Transport Executive,
a company which, in accordance with Part 5 of the Local Government and Housing Act 1989 (c. 42) (companies in which local authorities have interests), is under the control, or for the time being subject to the influence, of a local authority or a Passenger Transport Executive, and
a trust to which the provisions of section 69 of that Act (companies subject to local authority influence) are applicable because of an order under section 72 of that Act (trusts influenced by local authorities).
A local authority to which regulations under this section apply and any body or bodies falling within subsection (2)(a) or (b) with which the regulations link the authority are referred to in this section as the members of a local authority group.
Regulations under this section may include—
provision for the application of any of the provisions of this Chapter to members of a local authority group subject to such modifications as the regulations may specify;
provision as to the way in which—
dealings between members of a local authority group, or
changes in the capitalisation or capital structure of a company in a local authority group,
are to be brought into account for the purposes of this Chapter.