(1) It shall be the duty of the Secretary of State to ensure that such arrangements are in force as he thinks appropriate for authorising or requiring, in such cases as he thinks fit, the making to communications providers of appropriate contributions towards the costs incurred by them-
(a) in complying with the provisions of any code of practice, agreement or direction under this Part, or
(b) as a consequence of the retention of any communications data in accordance with any such provisions.
(2) For the purpose of complying with his duty under this section, the Secretary of State may make arrangements for the payments to be made out of money provided by Parliament.