7.—(1) For the purposes of allocating among councils the proportions of expenditure likely to be incurred by the Authority in accordance with an estimate arrived at under paragraph 5(1) that expenditure shall be met in such proportions as those councils may agree.
(2) Where it appears to the Secretary of State that the councils are unable to reach agreement in terms of sub-paragraph (1) above he shall determine the proportions in which such expenditure shall be met by those councils.