Legalize / United Kingdom / Public General Act

Transport Act 1985

Type Public General Act

Publication 1985-10-30

Last updated 2026-02-24

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(a) paragraph (a) referred to activities in which none of the component councils have power to engage; and

(b) references in paragraphs (b) and (c) to the controlling authority were references to the component councils.

(5) Subsection (3)(a) above shall not apply—

(a) in the case of a public transport company whose controlling authority are the Integrated Transport Authority for any integrated transport area or the Passenger Transport Authority for any passenger transport area, in relation to activities within the powers of the Executive for that area or activities which were formerly within those powers but have ceased to be so by virtue of any order made under section 60 of this Act;

(b) in the case of a public transport company within section 72(1)(c) of this Act, in relation to activities which were formerly within the powers of the council who formed or of any council who participated in forming that company, but have ceased to be so by virtue of section 66(1) of this Act;

(c) in relation to the provision of local services by a public transport company to which subsection (5B) applies or any other activity of the company relating to such services.

(5A) Subsection (3)(b) does not apply in relation to borrowing money for the purposes of, or in connection with, the provision of local services by a public transport company to which subsection (5B) applies.

(5B) This subsection applies to a public transport company the controlling authority of which is—

(a) an authority the functions of which are exercisable in relation to an area in England, or

(b) two or more authorities the functions of which are exercisable in relation to areas in England.

(6) The Secretary of State may by order prescribe—

(a) the permitted maximum number for the purposes of subsection (1) above; and

(b) the required minimum number for the purposes of subsection (2) above.

Disabilities of directors of public transport companies

74

(1) A director of a public transport company who is paid for acting as such or is an employee of the public transport company or a subsidiary of the public transport company shall be disqualified for being elected or being a member—

(a) of any council who are that company’s controlling authority; or

(b) where that company’s controlling authority are a composite authority, of any of the component councils.

(2) Where a public transport company’s controlling authority are an Integrated Transport Authority for an integrated transport area in England and Wales, a director of that company who is paid for acting as such or is an employee of that company or a subsidiary of that company shall be disqualified for being appointed or being a member of that Integrated Transport Authority.

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(13) The provisions of this section shall apply in relation to a director of a subsidiary of a public transport company as they apply in relation to a director of such a company.

Powers of investment and disposal in relation to public transport companies

75

(1) Without prejudice to the powers of a Passenger Transport Executive, an Integrated Transport Authority, a Passenger Transport Authority , a district council or, in Scotland, a council (other than the council for Orkney Islands, Shetland Islands or Western Isles)—

(a) to subscribe for shares on formation of a company formed by them (whether alone or jointly with any other council) in pursuance of any provision of this Part of this Act; or

(b) to acquire any shares in or other securities of a company so formed by way of consideration for any transfer of property, rights and liabilities to that company required or authorised under any such provision;

any such Authority or council shall have power at any time to subscribe for, take up or acquire (as the case may be) any shares in or other securities of any associated company.

(2) Any such Authority or council shall each have power to provide for the disposal, in such manner as they think fit, of any such shares or other securities.

(3) The exercise of the power under subsection (1) or (2) above requires the consent of the Secretary of State; and a public transport company’s controlling authority may not, without that consent, in exercise of their control over that company permit—

(a) the disposal by that company of the whole of that company’s undertaking;

(b) any disposal by that company of any shares in or other securities of a body corporate which is that company’s subsidiary; or

(c) any disposal by that company of any part of that company’s undertaking, or of any assets of that company (other than shares or securities within paragraph (b) above) which appears to that authority (or, in the case of a composite authority, to both or all of the component councils) to affect materially the structure of the company’s business.

(4) An Integrated Transport Authority A Passenger Transport Authority , a district council or, in Scotland, a council (other than the council for Orkney Islands, Shetland Islands or Western Isles) who are a public transport company’s controlling authority or (as the case may be) both or all of the component councils of a composite authority who are a public transport company’s controlling authority, may, in exercising their power under subsection (2) above in relation to the disposal of any shares in or other securities of that company, provide for an employees’ share scheme to be established in respect of that company; and any such scheme may provide for the transfer of shares without consideration.

Audit of accounts of public transport companies

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(1A) In a case where a public transport company's controlling authority are—

(a) a county council or county borough council in Wales, or

(b) a composite authority of which both or all the constituent councils are county councils or county borough councils in Wales,

it shall be the duty of the controlling authority to exercise their control over that company so as to ensure that the company appoints as auditors of the company only persons who, in addition to meeting the requirements of Part 42 of the Companies Act 2006 (statutory auditors), are approved for appointment as such auditors by the Auditor General for Wales.

(1B) In any other case, it shall be the duty of a public transport company's controlling authority to exercise their control over that company so as to ensure that the company appoints as auditors of the company only persons who meet the requirements of Part 42 of the Companies Act 2006 (statutory auditors).

(2) Where a public transport company’s controlling authority are a composite authority, the duty imposed by subsection (1) or (as the case may be) (1A) above is a joint duty of both or all of the component councils of that authority.

(3) This section shall not apply to Scotland.

Local authority financial controls in Scotland

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(1) Any liability to meet capital expenses incurred by a public transport company shall be treated for the purposes of section 94 of the Local Government (Scotland) Act 1973 (consent of Secretary of State required for the incurring of liability to meet capital expenses) as a liability to meet capital expenses incurred by that company’s controlling authority.

(2) Subject to the following provisions of this section, it shall be the duty of any public transport company’s controlling authority to exercise their control over that company so as to ensure that the company shall appoint only auditors who, in addition to being eligible for such appointment in accordance with Part II of the Companies Act 1989 meeting the requirements of Part 42 of the Companies Act 2006 (statutory auditors) , are approved for appointment as auditors of the company by the Commission for Local Authority Accounts in Scotland.

(3) Where a public transport company’s controlling authority are a Passenger Transport Executive, the reference in subsection (1) above to the controlling authority shall be read, in relation to that company, as a reference to the Passenger Transport Authority for that Executive’s area.

(4) References in this section to a public transport company include references to any subsidiary of such a company.

(5) This section applies to Scotland only.

Provision of services for public transport companies

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(1) A Passenger Transport Executive and a district council or, in Scotland, council (other than the council for Orkney Islands, Shetland Islands or Western Isles)a shall each have power to enter into an agreement with any associated company, or with any subsidiary of an associated company, for the provision by that Executive or council for that company or (as the case may be) for that subsidiary of any administrative, professional or technical services.

(2) Any agreement under this section shall include provision for payment of proper commercial charges in respect of services to be provided under the agreement.

Financial backing for establishment and operations of public transport companies

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(1) An Integrated Transport Authority A Passenger Transport Authority and a district council or, in Scotland, a council (other than the council for Orkney Islands, Shetland Islands or Western Isles) shall each have power to make loans to any associated company, or to guarantee loans made to any associated company by any other person, for the provision of working capital.

(2) The reference in subsection (1) above to guaranteeing loans is a reference to guaranteeing the repayment of the principal of, the payment of interest on, and the discharge of any other financial obligation in connection with, any such loans.

(3) The exercise of the power under subsection (1) above, otherwise than in pursuance of any provision made by any scheme or order under this Part of this Act in connection with any transfer of property, rights and liabilities to the company in question for which that scheme or order provides, requires the consent of the Secretary of State.

(4) An Integrated Transport Authority A Passenger Transport Authority and a district council or, in Scotland, a council (other than the council for Orkney Islands, Shetland Islands or Western Isles) shall each have power to make loans—

(a) to any associated company; or

(b) to any subsidiary of an associated company;

for the purpose of meeting any expenses incurred or to be incurred by that company or subsidiary in connection with the provision or improvement of assets in connection with its business.

(5) Any loan under subsection (4) above must be made on terms, both as to rates of interest and otherwise, no more favourable than the terms on which the authority making the loan would themselves be able to borrow at the time when the loan is made.

(6) An Integrated Transport Authority A Passenger Transport Authority and a district council or, in Scotland, a council (other than the council for Orkney Islands, Shetland Islands or Western Isles) shall each have power to give any guarantees and do any other things which appear to that Authority or (as the case may be) to that council to be necessary or expedient for the purpose of or in connection with—

(a) any disposal authorised by section 75(2) of this Act; or

(b) any disposal by any associated company of the whole or any part of that company’s undertaking, or of any property, rights or liabilities of that company.

(7) Where any such disposal requires or (as the case may be) may not be permitted without the consent of the Secretary of State, the power under subsection (6) above may not be exercised in relation to that disposal without the consent of the Secretary of State.

(8) Subject to subsection (9) below, an Integrated Transport Authority, a Passenger Transport Authority and a district council or, in Scotland, a council (other than the council for Orkney Islands, Shetland Islands or Western Isles) shall each have power, with the consent of the Secretary of State, to provide financial assistance by way of grants, loans or guarantees for any associated company which has incurred losses affecting the viability of its business.

(9) The power under subsection (8) above may only be exercised for the purpose of any plan approved by the Secretary of State for improving the efficiency of the company’s operations and its commercial performance generally so as to enable it to carry on business without further assistance from the Authority or council concerned or from any other council who are a member of the company.

(10) An Integrated Transport Authority A Passenger Transport Authority and a district council or, in Scotland, a council (other than the council for Orkney Islands, Shetland Islands or Western Isles) shall each have power, where on the winding up of any associated company the assets of the company are not sufficient to meet the company’s liabilities, to make to the creditors of the company such payments as may be necessary to meet the balance of those liabilities (and may accordingly give to persons dealing or proposing to deal with any such company such guarantees with respect to the exercise of their power under this subsection in relation to that company as they think fit).

Miscellaneous and supplementary

Duty of Passenger Transport Authority not to inhibit competition

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An Integrated Transport Authority or a Passenger Transport Authority, in exercising their functions—

(a) in relation to the formation of companies under section 61 of this Act and the formulation of proposals under that section;

(b) in relation generally to the exercise of rights in relation to any public transport company arising from the holding of any shares in or other securities of that company;

(c) in relation in particular to the exercise of control virtue of any such rights over any disposal by any such company of the whole or any part of that company’s undertaking, or of any property, rights or liabilities of that company; and

(d) in relation to any disposal under section 75(2) of this Act;

shall so conduct themselves as not to inhibit competition between persons providing or seeking to provide public passenger transport services in their area.

Provision, maintenance and operation of bus stations

81

(1) A Passenger Transport Executive for any integrated transport area or passenger transport area shall have power—

(a) to provide bus stations and associated facilities at any place in or in the vicinity of their area; and

(b) to maintain, repair and operate bus stations and associated facilities provided under paragraph (a) above or under their former powers.

(2) Where a council who, at the time when section 66 of this Act comes into force, are providing a service for the carriage of passengers by road which requires a PSV operator’s licence, have ceased by virtue of subsection (1) of that section to have power to provide such a service, that council shall have power to maintain, repair and operate bus stations and associated facilities provided by them under their former powers.

(2A) Where, immediately before 1st April 1996, a council (the “former council”) had power, by virtue of subsection (2) above, to maintain, repair and operate a bus station and any associated facilities, that power is, on and after that date, exercisable—

(a) where the bus station and any such associated facilities—

(i) was or were, immediately before 1st April 1996, situated wholly within the area of the former council, and

(ii) is or are, on and after that date, situated wholly within a single Welsh county or county borough,

by the council of that county or county borough; and

(b) in any other case, by such Welsh county council or county borough council as the Secretary of State may by order designate.

(3) Any charges for the use of accommodation for public service vehicles at any bus station provided by the Passenger Transport Executive for any integrated transport area or passenger transport area or provided by any other person under any agreement entered into by any such Executive under section 10(1)(xv) of the 1968 Act (contracting-out powers) shall be reasonable.

(4) Subsection (3) above only applies where the charges are made by the Executive in question under section 10(1)(xiii) of that Act or by a person who is operating the bus station under any such agreement otherwise than as agent for the Executive.

(5) Any such council as is mentioned in subsection (2) above shall have power—

(a) to make reasonable charges for the use of accommodation for public service vehicles at any bus station provided under their former powers; and

(b) to make reasonable charges for the use of, or let on hire to any person, any associated facilities provided by them in connection with any bus station so provided.

(5A) Any Welsh county council or county borough council by whom any power is exercisable in relation to a bus station and any associated facilities by virtue of subsection (2A) above shall have power—

(a) to make reasonable charges for the use of accommodation for public service vehicles at that bus station; and

(b) to make reasonable charges for the use of, or let on hire to any person, those facilities (if any).

(6) If any person who is the holder of a PSV operator’s licence in respect of any vehicles using accommodation for public service vehicles at any such bus station as is mentioned in subsection (3), (5) or (5A) above considers that charges for the use of that accommodation are unreasonable, that person may apply to the traffic commissioner for the traffic area in which the bus station is situated (or, where it is situated partly in one area and partly in another, to the traffic commissioner for such of those areas as may be agreed between the traffic commissioners concerned or, in default of agreement, determined by the Secretary of State a traffic commissioner).

(7) On any application under subsection (6) above the traffic commissioner a traffic commissioner may determine the charges to be made in respect of the applicant’s vehicles for such period and on such terms as he thinks fit.

Bus stations: restrictions on discriminatory practices, etc.

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(1) Neither a Passenger Transport Executive nor a local authority shall, in the exercise of any of their powers—

(a) in relation to the provision or operation of bus stations or any associated facilities; or

(b) without prejudice to paragraph (a) above) in relation in particular to the charges to be made for the use of any accommodation at a bus station or of any associated facilities;

act in such a way as to discriminate (whether directly or indirectly) against any holder, or class of holder, of a PSV operator’s licence.

(2) In relation to a local authority, the powers in question under subsection (1) above include in particular (without prejudice to the generality of that subsection) their powers under section 38 of the Road Traffic Regulation Act 1984 (appointment of parking places provided under section 32 of that Act as stations for public service vehicles and provision of accommodation in connection with places so appointed).

(3) Where under any agreement (other than an agency agreement) entered into by a Passenger Transport Executive under section 10(1)(xv) of the 1968 Act (contracting-out powers) a person is operating a bus station or any associated facilities provided by that Executive or provided by that or any other person under any such agreement, that person shall not—

(a) in relation to the operation of that bus station or (as the case may be) of those facilities; or

(b) (without prejudice to paragraph (a) above) in relation in particular to the charges to be made for the use of any accommodation at that station or (as the case may be) for the use of those facilities;

act in such a way as to discriminate (whether directly or indirectly) against any holder, or class of holder, of a PSV operator’s licence.

(4) The reservation of the whole or any part of the accommodation for public service vehicles at any bus station for such vehicles used in providing local services or (as the case may be) for such vehicles used in providing services other than local services shall not be taken to be discrimination prohibited by subsection (1) or (3) above.

(4A) Nothing done pursuant to an advanced quality partnership scheme or a quality partnership scheme under Part II of the Transport Act 2000 by—

(a) a Passenger Transport Executive,

(b) a local authority, or

shall be taken to be discrimination prohibited by subsection (1) or (3) above.

(4A) Nothing done pursuant to a quality partnership scheme under Part 2 of the Transport (Scotland) Act 2001 (asp 2) by—

(a) the Strathclyde Passenger Transport Executive;

(b) a local authority; or

shall be taken to be discrimination prohibited by subsection (1) or (3) above.

(5) Notwithstanding anything in section 8 of the Transport Act 1983(obligation to accept tenders for carrying on activities of Executives in certain circumstances) a Passenger Transport Executive may not in exercise of their powers under section 10(1)(xv) of the 1968 Act enter into an agreement (other than an agency agreement) for—

(a) the provision of any bus station or associated facilities the Executive have power under section 81 of this Act to provide; or

(b) the operation of any bus station or associated facilities provided by the Executive under that section or under their former powers or provided by any other person under any agreement entered into by the Executive under section 10(1)(xv);

by a person who is the operator of any public passenger transport services or a person connected with any such operator.

(6) In this section “agency agreement” means, in relation to any agreement under section 10(1)(xv), an agreement with any person for the carrying on of activities by that person as agent for the Executive concerned.

(7) Any such agreement as is mentioned in subsection (5)(b) above entered into after this subsection comes into force shall include provision for ensuring that it will come to an end if the person who under the agreement is to operate the bus station or associated facilities to which it applies becomes the operator of any public passenger transport services or a person connected with any such operator.

(8) On and after the date on which this section comes into force, subsection (5) above shall apply in relation to any such agreement as is there mentioned entered into by the Passenger Transport Executive for any passenger transport area before that date as if this section had come into force on 11 July 1985.

Provisions supplementary to sections 81 and 82

83

(1) References in section 81 of this Act to the former powers of any such council as is mentioned in subsection (2) of that section are references to any powers which have ceased to be exercisable by that council by virtue of the application to that council of section 66(1) of this Act; and references in that section and in section 82 of this Act to the former powers of a Passenger Transport Executive are references to any powers which have ceased to be exercisable by that Executive by virtue of any order under section 60(5) of this Act.

(2) For the purposes of section 82 of this Act a person is a person connected with the operator of any public passenger transport services if that person is a member of a group of interconnected bodies corporate any one or more of which is such an operator.

(3) For the purposes of subsection (2) above, any two bodies corporate are to be treated as interconnected if one of them is a body corporate of which the other is a subsidiary or if both of them are subsidiaries of the same body corporate; and in that subsection “group of interconnected bodies corporate” means a group consisting of two or more bodies corporate all of which are interconnected with each other in the sense given above.

(4) In section 82 of this Act “local authority” means—

(a) in relation to England and Wales, the council of a county, London borough or district or the Common Council of the City of London; and

(b) in relation to Scotland, a . . . council.

(5) In sections 81 and 82 of this Act and this section—

(a) “bus station” means a parking place which may be used by public service vehicles (including any such parking place which forms part of any interchange facilities for enabling passengers travelling by one means of transport to continue their journey by another); and

(b) “associated facilities” means, in relation to a bus station, any amenities or facilities provided for use in connection with that station.

Compensation for loss of employment, etc.

84

(1) Regulations may provide for the payment, by such persons as may be prescribed by or determined under the regulations, in such cases and to such extent as may be so prescribed or determined, of pensions, allowances or gratuities by way of compensation to or in respect of persons who have suffered loss of employment or loss or diminution of emoluments or pension rights by reason of—

(a) the disposal under section 75(2) of this Act of any interests held by an Integrated Transport Authority, a Passenger Transport Authority or district council or, in Scotland, a council (other than the council for Orkney Islands, Shetland Islands or Western Isles) in a public transport company;

(b) the disposal by any such company of the whole or any part of that company’s undertaking; or

(2) Regulations under this section may—

(a) include provision as to the manner in which and the persons to whom any claim for compensation is to be made, and for the determination of all questions arising under the regulations;

(b) make or authorise the Secretary of State to make exceptions and conditions in relation to any classes of persons or any circumstances to which the regulations apply; and

but regulations having effect from a date earlier than their making shall not place any individual who is qualified to participate in the benefits for which the regulations provide in a worse position than he would have been in if the regulations had been so framed as to have effect only from the date of their making.

(3) Regulations under this section may include all or any of the following provisions, namely—

(a) provision authorising the payment, without probate or, in Scotland, confirmation, and without other proof of title, of any sum due under the regulations in respect of a person who has died to his personal representatives or such other persons as may be prescribed by the regulations;

(b) provision rendering void any assignment or, in Scotland, assignation of or charge on, or any agreement to assign or charge, any benefit under the regulations, and provision that on the bankruptcy of or, in Scotland, sequestration of the estate of, or granting of a trust deed for creditors by, a person entitled to such a benefit no part of it shall pass to any trustee or other person acting on behalf of the creditors except in accordance with an order made by a court in pursuance of any enactment specified in the regulations; and

(c) such incidental, supplementary, consequential and transitional provisions as appear to the Secretary of State to be necessary or expedient.

(4) Subject to subsection (5) below, where regulations under this section have made provision for the payment of pensions, allowances or gratuities as mentioned in subsection (1) above, compensation in respect of any such loss of employment or loss or diminution of emoluments or pension rights as is mentioned in that subsection shall be paid only in accordance with those regulations in any case to which those regulations apply; and accordingly such compensation shall not be paid under any other statutory provision, by virtue of any provision in a contract or otherwise.

(5) Subsection (4) above shall not prevent any person from making any payment to which a person is entitled by virtue of contractual rights acquired by him before such date as the Secretary of State may by order specify.

Incorporation of Passenger Transport Executives in Authorities for their area

85

(1) The Secretary of State may by order make provision for the transfer of all functions, property, rights and liabilities of the Passenger Transport Executive for any integrated transport area or passenger transport area specified in the order the Integrated Transport Authority or, as the case may be, to the Passenger Transport Authority for that area.

(2) An order under this section may contain such supplementary, incidental and consequential provisions as may appear to the Secretary of State to be necessary or expedient.

(3) Without prejudice to the generality of subsection (2) above, any such order may, in particular—

(a) provide for enactments relating to the functions of Passenger Transport Executives and Authorities , Integrated Transport Authorities and Passenger Transport Authorities respectively to have effect in relation to the integrated transport area or passenger transport area specified in the order with such modifications as may be so specified; and

(b) provide for the dissolution of the Passenger Transport Executive for that area.

(4) The property, rights and liabilities to which an order under this section relates shall, subject to subsection (5) below, be transferred and vest in accordance with the order on such date as may be appointed by the order for that purpose.

(5) Subject to the following provisions of this section, Schedule 4 to the 1968 Act shall apply to any transfer under subsection (4) above; and subsection (4) above shall have effect subject to the provisions of that Schedule.

(6) In Schedule 4 as it applies by virtue of subsection (5) above—

(a) any reference to a transfer by or a vesting by virtue of that Act shall be read as a reference to a transfer by or a vesting by virtue of the order; and

(b) the reference in paragraph 13(5) to the relevant provisions of that Act shall be read as including a reference to the relevant provisions of this Act.

(7) Any order under this section may make modifications in Schedule 4 for the purposes of its application to a transfer effected by that order.

(8) No order shall be made under this section unless a draft of the order has been laid before, and approved by a resolution of, each House of Parliament.

Amendments consequential on orders under section 85

86

(1) The Secretary of State may by order provide for the modifications in the enactments mentioned in section 85(3)(a) of this Act, as those modifications apply for the time being in relation to integrated transport areas or passenger transport areas to which an order under that section applies, to have general effect on the date on which, by virtue of the cumulative effect of orders under that section, they first have effect in relation to all such areas in Great Britain.

(2) Any order made under this section may contain such supplementary, incidental and consequential provisions (including provisions modifying any enactments contained in this or any other Act) as may appear to the Secretary of State to be necessary or expedient in consequence of giving general effect to the modifications mentioned in subsection (1) above.

Interpretation of Part IV

87

In this Part of this Act—

(a) references to the initial company shall be read, in relation to any passenger transport area, in accordance with section 60(1) of this Act;

(b) references to a council operating a bus undertaking shall be read in accordance with section 66(2) of this Act;

(i) a service for the carriage of passengers by road which requires a PSV operator’s licence;

(ii) the provision of any such service by any council; and

(iii) the bus undertaking of any council operating a bus undertaking;

shall be read in accordance with the relevant provisions of section 66(7) of this Act;

(d) references to a joint undertaking of which any council’s bus undertaking forms part shall be read in accordance with section 67(6) of this Act; and

(e) references to—

(i) a public transport company;

(ii) a public transport company’s controlling authority;

(iii) a composite authority;

(iv) component councils of a composite authority; and

(v) an associated company;

shall be read in accordance with the relevant provisions of section 72 of this Act. and

(f) references to a district council shall be read, in relation to Wales, as references to a county council or county borough council, and references to a district shall be so read as references to a county or, as the case may be, county borough.

Part V — Financial Provisions

Expenditure on public passenger transport services

88

(1) Any power conferred on any authority responsible for expenditure on public passenger transport services to enter into agreements providing for service subsidies (however framed, and whether arising under this Act or under any other enactment) shall be subject to sections 89 to 92 of this Act.

(2) It shall be the duty—

(a) of all such authorities, in exercising and performing their functions with respect to securing the provision of public passenger transport services; and

(b) of all—

(i) local authorities in England and Wales, or,

(ii) education authorities in Scotland or local authorities exercising social work functions in Scotland,

in relation to any expenditure on transport for the purposes of or in connection with the exercise and performance of any of the functions set out in subsection (2A);

to co-operate with one another so as to secure, in the interests of the ratepayers of their areas, the best value for money from their expenditure on public passenger transport, taken as a whole.

(2A) The functions referred to in subsection (2)(b) are—

(a) in relation to local authorities in England and Wales, their education functions (as defined in section 579(1) of the Education Act 1996) and their social services functions;

(b) in relation to Scotland, their functions as education authorities and their social work functions.

(3) In subsection (2)(b) “local authority” means—

(a) in relation to England and Wales, a county council, a metropolitan district council, a non-metropolitan district council for an area for which there is no county council, a county borough council, a London borough council, and the Common Council of the City of London (in their capacity as a local authority); and

(b) in relation to Scotland, an authority who are a local authority for the purposes of the Social Work (Scotland) Act 1968.

(4) It shall be the duty of all authorities mentioned in subsection (2) above to afford to one another such information as may be reasonably required for the purpose of the co-operation required of them under that subsection.

(5) Where, as a result of any such co-operation, any such authority—

(a) incur expenditure which they would not otherwise have incurred; or

(b) receive less revenue than they would otherwise have done;

that authority may, by notice to the other authority or authorities concerned, require that other authority or (as the case may be) those other authorities to reimburse the amount of that expenditure or of that reduction in revenue.

(6) If—

(a) any amount in respect of which, in accordance with a notice under subsection (5) above, any such authority or authorities are required to reimburse another such authority; or

(b) where two or more such authorities are required by any such notice to reimburse another such authority, the share of that amount payable by each authority concerned;

is not determined by agreement between both or all the authorities concerned within six months of the receipt of the notice or such longer period as may be agreed between them, that amount and (where paragraph (b) above applies) the share payable by each authority concerned shall be determined by an arbitrator or, in Scotland, by an arbiter.

(7) Any such arbitrator or (as the case may be) arbiter shall be appointed either by agreement between the authorities concerned or, in default of such agreement, by the President of the Chartered Institute of Public Finance and Accountancy.

(8) References in this Part of this Act to authorities responsible for expenditure on public passenger transport services are references to—

(a) Passenger Transport Executives;

(b) non-metropolitan county and district councils in England and Wales; and

and in sections 89 to 92 of this Act include references to Transport for London in relation to any exercise of its power under section 156(2) or (3) (general powers) of the Greater London Authority Act 1999 which by virtue of section 65(3) of this Act is subject to those sections.

Obligation to invite tenders for subsidised services

89

Provisions supplementary to section 89

90

Exceptions from section 89

91

General provisions with respect to the exercise of service subsidy functions

92

(1) An authority responsible for expenditure on public passenger transport services shall, in the exercise and performance of their functions in relation to agreements providing for service subsidies, have regard to the interests of the public and of persons providing public passenger transport services in their area.

(2) Regulations under this section—

(a) may make further provision for regulating the exercise and performance by authorities responsible for expenditure on public passenger transport services of their functions in relation to agreements providing for service subsidies; and

(b) may make provision for limiting to an amount specified in the regulations the aggregate amount of the service subsidies any such authority may agree to pay under any one such agreement; and

(3) The provisions of sections 89 to 91 of this Act shall be subject to this section and any provision made by regulations under this section.

Travel concession schemes

93

(1) Any local authority, or any two or more local authorities acting jointly, may establish a travel concession scheme for the provision of travel concessions on journeys on public passenger transport services—

(a) between places in the principal area covered by the scheme;

(b) between such places and places outside but in the vicinity of that area; or

by operators of such services participating in the scheme.

(2) For the purposes of this section, the principal area covered by a scheme under this section is—

(a) the area of the local authority concerned or, where two or more such authorities are concerned, the area comprising the areas of both or all those authorities; or

(b) if an area comprised within the area which would be the principal area under paragraph (a) above is specified in the scheme as being the principal area to which the scheme applies, the area so specified.

(3) Any travel concession scheme established under this section shall define—

(a) the travel concessions which are for the time being to be provided by operators participating in the scheme;

(b) the description of persons eligible in accordance with subsection (7) below to receive travel concessions under any such scheme who are for the time being to qualify for travel concessions provided under the scheme; and

(c) the dates in any year currently adopted as the dates on which operators may be admitted to participate in the scheme under section 96 of this Act (referred to below in this section as the standard admission dates);

and may include particulars of any other arrangements for the time being adopted by the authority or authorities concerned in establishing the scheme with respect to the operation, scope and application of the scheme.

(4) Any such scheme may define the standard admission dates by specifying particular dates, or by referring to dates of any specified description or separated by intervals of any specified length; but those dates, however determined, must not be separated by intervals of a length exceeding such period as may be prescribed.

(5) Arrangements adopted by the authority or authorities concerned in establishing any such scheme with respect to the operation, scope and application of the scheme (including the matters specifically mentioned in paragraphs (a) to (c) of subsection (3) above) may differ for different descriptions of concessions or services to which the scheme applies.

(6) Subject to section 94 of this Act, where an operator participating in any such scheme in respect of any services operated by him provides travel concessions in accordance with the scheme for persons travelling on those services, the authority responsible for administration of the scheme or (as the case may be) the authorities so responsible in such proportions respectively as they may agree among themselves shall reimburse that operator for providing those concessions.

(7) The persons eligible to receive travel concessions under any such scheme are—

(a) persons who have attained the age of sixty years;

(b) persons whose age does not exceed sixteen years;

(c) persons whose age exceeds sixteen years but does not exceed eighteen years and who are undergoing full-time education;

(d) persons who are blind;

(e) persons who are partially sighted;

(ea) persons who are deaf;

(eb) persons who are without speech;

(ec) persons who have a disability, or have suffered an injury, which has a substantial and long-term adverse effect on their ability to walk;

(ed) persons who do not have arms or have long-term loss of the use of both arms;

(ee) persons who have a learning disability, that is, a state of arrested or incomplete development of mind which includes significant impairment of intelligence and social functioning;

(ef) persons who, if they applied for the grant of a licence to drive a motor vehicle under Part III of the Road Traffic Act 1988, would have their applications refused pursuant to section 92 of that Act (physical fitness) otherwise than on the ground of persistent misuse of drugs or alcohol;

(eg) any person travelling as the companion of a person who—

(i) is eligible to receive travel concessions by virtue of any other paragraph of this subsection; and

(ii) requires the assistance of a companion in order to travel on journeys on public passenger transport services;

(f) such other classes of persons as the Secretary of State may by order specify.

(8) In this section “local authority”—

(a) means

(i) a county council in England,

(ii) a council of a non-metropolitan district in England comprised in an area for which there is no county council,

(iii) the council of a county or district in ... Wales or

(iv) a regional or islands council in Scotland; and

(b) includes also, in relation to England and Wales, an Integrated Transport Authority for an integrated transport area , a combined authority and a combined county authority.

(9) Unless the context otherwise requires, references in this section and in the provisions of this Part of this Act relating to schemes under this section to the authority or authorities responsible for administration of a scheme under this section are references—

(a) except in a case to which paragraph (b) below applies, to the authority concerned in establishing the scheme or, where two or more authorities are so concerned, to both or all those authorities acting jointly; or

(b) in relation to England and Wales, a metropolitan county passenger transport authority where the authority or one of the authorities concerned in establishing the scheme are an Integrated Transport Authority for an integrated transport area in England and Wales, to the Passenger Transport Executive for that Authority’s area or (as the case may require) to that Executive and the other authority or authorities so concerned acting jointly; or

(10) Where an Integrated Transport Authority or a Passenger Transport Authority have established a scheme under this section, whether alone or jointly with any other authority or authorities, they shall notify the Passenger Transport Executive for their area of any proposal to vary the scheme, giving particulars of the proposed variation.

Administration of schemes: reimbursement, etc.

94

(1) Regulations under this section may make provision with respect to any of the following matters—

(a) the factors to be taken into account by the authority or authorities responsible for administration of a travel concession scheme under section 93 of this Act in determining the aggregate amount that may be made available for the purpose of reimbursing operators participating in the scheme for providing travel concessions during any period;

(b) the determination by the authority or authorities so responsible of the amounts to be paid to individual operators participating in the scheme, or to any class of such operators, by way of reimbursement for providing such concessions;

(d) the provisions or descriptions of provisions that are to be or (as the case may be) may or may not be included in arrangements agreed with operators or adopted by the authority or authorities so responsible with respect to participation of operators in the scheme; and

(e) the terms on which and the extent to which the authority or authorities so responsible may employ any person as their agent for the purposes of the administration of the scheme and the descriptions of persons who may be so employed.

(2) Subject to any provision of regulations made by virtue of subsection (1)(d) above and to the following provisions of this section, the arrangements with respect to participation of operators in any such scheme shall be such as may from time to time be agreed between the authority or authorities responsible for administration of the scheme and individual operators.

(3) Subject to—

(a) any provision of regulations under subsection (1) above;

(b) any modifications that may by virtue of any provision of regulations made by virtue of paragraph (d) of that subsection or in accordance with section 96 of this Act be agreed between the authority or authorities responsible for administration of any such scheme and any individual operator; and

the arrangements with respect to reimbursement and terms of withdrawal from participation in the scheme applicable to operators of eligible services participating in the scheme shall be such as the authority or authorities responsible for administration may from time to time adopt and must be the same in the case of all such operators.

(4) For the purposes of the provisions of this Part of this Act relating to schemes under section 93 of this Act, “eligible service” means—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) . . . a service using public service vehicles of a class specified in an order made by the Secretary of State (as respects England) or the National Assembly for Wales (as respects Wales).

(5) The arrangements currently adopted by the authority or authorities responsible for administration of any such scheme with respect to reimbursement of operators of eligible services participating in the scheme are referred to below in this Part of this Act, in relation to that scheme, as the current reimbursement arrangements for eligible service operators participating in the scheme.

(6) In relation to operators participating in any such scheme, references in this section to arrangements with respect to reimbursement are references to conditions of entitlement of such operators to, and the method of determination and manner of payment of, reimbursement in respect of travel concessions provided under the scheme.

Publicity requirements for schemes and reimbursement arrangements

95

(1) On or before the date on which a scheme under section 93 of this Act comes into operation or, where it comes into operation on different dates with respect to different concessions to be provided under the scheme, on or before the first of those dates—

(a) the authority or authorities concerned in establishing it shall publish particulars of the scheme; and

(b) the authority or authorities responsible for administration of the scheme shall publish particulars of the current reimbursement arrangements for eligible service operators participating in the scheme as they are to apply on initial establishment of the scheme;

in such manner, in either case, as the authority or authorities concerned think fit.

(2) Particulars of any subsequent variations shall be published—

(a) in the case of variations of the scheme, by the authority or authorities concerned in establishing the scheme; and

(b) in the case of variations of the arrangements, by the authority or authorities responsible for administration of the scheme.

(3) Following publication under subsection (1)(a) or (as the case may be) under subsection (1)(b) above of particulars of any scheme or arrangements—

(a) copies of the scheme or (as the case may be) of the arrangements (with any subsequent variations) shall be made available at the principal office of the authority or (as the case may be) of each authority concerned; and

(b) a copy shall be supplied to any person on request (whether at that office or by post) either free of charge or at a charge representing the cost of providing the copy.

(4) Where the authority or any of the authorities concerned in establishing a scheme under section 93 of this Act are an Integrated Transport Authority or a Passenger Transport Authority, they shall notify the Passenger Transport Executive for their area of any proposal to publish particulars of the scheme in advance of its coming into operation, giving the proposed date of publication.

Right of eligible service operators to participate in travel concession schemes

96

(1) Subject to the following provisions of this section, where any operator or prospective operator of an eligible service which runs or will run between places within the limits covered by any scheme under section 93 of this Act applies to the authority or authorities responsible for administration of that scheme to be admitted to participate in it in respect of that service, the authority or authorities in question shall be obliged to admit that operator to participation in the scheme in respect of that service as from any standard admission date under the scheme not later than the one next following—

(a) the end of such period as may be prescribed beginning with the date of his application; or

(b) the date on which the service begins;

whichever last occurs.

(2) The Secretary of State may, on the application of the authority or authorities responsible for administration of any such scheme, exempt the authority or authorities in question from the obligation under subsection (1) above in relation to any service or description of services; and the Secretary of State may at any time withdraw or vary any exemption granted under this subsection.

(3) An exemption may not be granted under subsection (2) above on the application of a Passenger Transport Executive, or on the joint application of authorities who include such an Executive, unless the application is made with the consent of the Integrated Transport Authority or, as the case may be, the Passenger Transport Authority for that Executive’s area.

(4) Subject to any regulations under section 94(1)(d) of this Act, where it appears to the authority or authorities responsible for administration of any such scheme, in the case of any operator or prospective operator of an eligible service who applies to be admitted to participate in the scheme in respect of that service, that fares currently charged or proposed to be charged by that operator for relevant journeys on that service include a special amenity element, the authority or authorities in question shall not be required by subsection (1) above to admit that operator to participation in the scheme in respect of that service unless that operator agrees to appropriate modifications of the current reimbursement arrangements for eligible service operators participating in the scheme.

(5) Subject to any such regulations, where it appears to the authority or authorities responsible for administration of any such scheme, in the case of any operator of an eligible service participating in the scheme, that fares currently charged by that operator for relevant journeys on that service include a special amenity element, the authority or authorities in question may by notice of not less than such period as may be prescribed exclude that operator from participation in the scheme in respect of that service unless before the end of that period that operator agrees to appropriate modifications of the current reimbursement arrangements for eligible service operators participating in the scheme.

(6) For the purposes of subsections (4) and (5) above fares for relevant journeys are to be regarded as including a special amenity element if they are significantly high in relation to the general level of fares for comparable journeys in the principal area covered by the scheme (within the meaning of section 93 of this Act).

(7) References in those subsections to appropriate modifications of the reimbursement arrangements there mentioned are references to such modifications of those arrangements as the authority or authorities concerned consider appropriate for providing reimbursement in respect of travel concessions provided for relevant journeys on the service in question by reference to the general level of fares mentioned in subsection (6) above instead of by reference to the actual fares charged (or proposed to be charged) for those journeys.

(8) For the purposes of this section “relevant journeys” are journeys on which travel concessions are to be provided under the scheme in question.

(9) For the purposes of this section and section 97 of this Act, references to a prospective operator of an eligible service are references to a person who has registered a local service under section 6 of this Act but is not yet operating that service.

Compulsory participation in travel concession schemes

97

(1) Subject to subsection (8) below, where the arrangements currently adopted by the authority or authorities responsible for administration of a scheme under section 93 of this Act with respect to the terms on which operators of eligible services may withdraw from participation in the scheme require such an operator to give notice before withdrawing from the scheme in respect of any such service, any such operator shall be obliged to provide any travel concessions required by the scheme on journeys on any such service in respect of which he is participating in the scheme until he gives the required notice of withdrawal and the period of notice has expired.

(2) Subject to the following provisions of this section, the authority or authorities responsible for administration of any such scheme may at any time by notice in writing served on any operator or prospective operator of an eligible service (including an operator already participating in the scheme) impose on him an obligation to provide travel concessions in accordance with the scheme on journeys on any such service operated by that operator to which the notice applies.

A notice under this subsection is referred to below in this Part of this Act as a participation notice.

(3) The power under subsection (2) above to serve a participation notice shall not be exercisable in relation to any such scheme until after the date (or whichever last occurs of the respective dates) of first publication under secdtion 95 of this Act of particulars of the scheme and of the current reimbursement arrangements for eligible service operators participating in the scheme as they are to apply on initial establishment of the scheme.

(4) An obligation imposed by a participation notice shall, subject to subsection (8) below and sections 98 and 99 of this Act, be effective in relation to any service to which the obligation applies as from the appropriate commencement date for that service until the end of such period beginning with that date as may be specified in the participation notice.

(5) Subject to subsection (9) below, for the purposes of subsection (4) above the appropriate commencement date for any service to which an obligation imposed by a participation notice applies is—

(a) the date immediately following the end of such period of notice as may be specified in the participation notice; or

(b) the date when the service begins;

whichever last occurs.

(6) Where it is proposed—

(a) to vary a scheme under section 93 of this Act; or

(b) to vary the current reimbursement arrangements for eligible service operators participating in any such scheme;

the authority or authorities responsible for administration of the scheme may, not less than such period before the variation is to take effect as may be prescribed, by notice served on any operator of any such service who is under an obligation under this section to provide travel concessions in accordance with the scheme, require him to indicate, within such period and in such manner as may be prescribed, whether or not he is willing to continue to participate in the scheme after the variation takes effect.

(7) Any notice under subsection (6) above shall give particulars of the proposed variation.

(8) Where in pursuance of subsection (6) above an operator indicates that he is not willing to continue to participate in the scheme after the variation takes effect, any obligation of that operator under this section to provide travel concessions in accordance with the scheme which was current at the date of the notice under that subsection and would still apart from this subsection be in force on the date when the variation takes effect shall cease on the latter date (without prejudice, however, to the service of a new participation notice).

(9) Where a notice is served on an operator under subsection (6) above the preceding provisions of this section shall apply, on and after the date when the variation in question takes effect, in relation to any obligation of that operator under subsection (2) above to provide travel concessions in accordance with the scheme in question which—

(a) was current at the date of the notice; and

(b) does not cease (by virtue of subsection (8) above or otherwise) before the date when that variation takes effect;

as if the latter date were the appropriate commencement date for the purposes of subsection (4) above for each service to which the obligation applies.

(10) The exercise of the power to serve a participation notice under this section on any person—

(a) by a Passenger Transport Executive; or

(b) by authorities responsible for administration of a scheme under section 93 of this Act who include such an Executive;

shall require the consent of the Integrated Transport Authority or, as the case may be, the Passenger Transport Authority for the Executive’s area.

Further provisions with respect to participation notices

98

(1) The authority or authorities by whom a participation notice is served on any person shall send to that person, together with the notice, a copy of—

(a) such particulars of the scheme to which the notice relates and of any variations of that scheme; and

(b) such particulars of the current reimbursement arrangements for eligible service operators participating in the scheme and of any variations of those arrangements;

as have been published under section 95 of this Act before the date of the notice.

(2) Subject to the following provisions of this section, a person on whom a participation notice has been served may apply to the Secretary of State for cancellation or variation of that notice on either or both of the following grounds, that is to say—

(a) that there are special reasons why his participation in the scheme in question in respect of the service or any of the services to which the notice applies would be inappropriate; and

(b) that any provision of the scheme or of any such arrangements as are mentioned in subsection (1)(b) above are inappropriate for application in relation to operators other than operators voluntarily participating in the scheme.

(3) Subject to subsection (4) below, an application under subsection (2) above may be made by notice in writing given to the Secretary of State before the end of the period of twenty-eight days beginning with the date of the participation notice.

(4) A person may not make such an application unless he has given notice in writing of his intention to do so to the authority or authorities by whom the participation notice was served—

(a) if a period allowed for that purpose is specified in the participation notice, before the end of that period; or

(b) in any other case, at any time before the date of the notice given to the Secretary of State under subsection (3) above.

(4A) But if the participation notice was served on the person by one or more authorities in England only—

(a) subsection (3) above shall have effect as if for “twenty-eight days beginning with the date of the participation notice” there were substituted “ fifty-six days beginning with the date provided for in relation to the participation notice by virtue of section 97(5)(a) above ”; and

(b) subsection (4) above shall have effect as if for paragraph (a) there were substituted—

(a) if the person is required by the participation notice to give a prescribed number of days' notice (or, if no number of days is prescribed, seven days' notice), at least that number of days before the date of the notice given to the Secretary of State under subsection (3) above; or

(5) Where on any such application the Secretary of State finds the ground mentioned in subsection (2)(a) above established, he may cancel the participation notice or (as the case may require) vary it by excluding from it any service operated by the applicant in respect of which he considers the applicant’s participation in the scheme would be inappropriate.

(6) Where on any such application the Secretary of State finds the ground mentioned in subsection (2)(b) above established, he shall cancel the participation notice unless he considers that a direction under subsection (7) below would meet the case.

(7) Where on any such application the Secretary of State does not cancel the participation notice, he may direct that the current arrangements for reimbursement of eligible service operators participating in the scheme shall apply in the case of the applicant or (as the case may require) in the case of any service operated by the applicant to which the participation notice applies with such modifications as may be specified in the direction.

(8) If the Secretary of State cancels a participation notice under subsection (6) above he shall give to the authority or authorities by whom the notice was served a notice in writing indicating in what respects the scheme or (as the case may be) the current reimbursement arrangements for eligible service operators participating in the scheme are inappropriate for application in relation to operators other than operators voluntarily participating in the scheme.

(9) Any obligation under section 97(2) of this Act which has come into effect before the determination of any application under this section with respect to the participation notice by which that obligation was imposed shall—

(a) cease to have effect, if the notice is cancelled; or

(b) have effect, if the notice is varied, subject to a corresponding variation;

on such date as may be specified by the Secretary of State in determining the application.

Release from compulsory participation

99

(1) The authority or authorities responsible for administration of a scheme under section 93 of this Act may at any time by notice in writing served on any operator who is under an obligation under section 97(2) of this Act to provide travel concessions in accordance with the scheme on journeys on any eligible service operated by him release him from that obligation in respect of that service.

(2) Subject to the following provisions of this section, any such operator may at any time by notice in writing apply to the Secretary of State to be released from that obligation in respect of any such service on the ground that the authority or authorities responsible for administration of the scheme have failed to comply with their obligation under section 93(6) of this Act.

(3) An operator may not make such an application unless he has given notice in writing of his intention to do so to the authority or authorities responsible for administration of the scheme not less than twenty-eight days before the date of the application.

(4) A notice under subsection (2) or (3) above shall give particulars of any alleged failures of the authority or authorities in question to comply with their obligation under section 93(6) of which the operator complains.

(5) On any such application the Secretary of State may, if he finds the applicant’s ground of complaint established, determine that the applicant’s obligation under section 97(2) shall cease on such date as may be specified in the determination.

Provisions supplementary to sections 96 to 99

100

(1) Regulations under this section may make provision as to—

(a) the maximum or (as the case may be) minimum period that may for the purposes of any provision of section 97 or 98 of this Act be specified in a participation notice;

(b) the form and contents of participation notices and other notices required for any purposes of sections 96 to 99 of this Act; and

(2) Where the Secretary of State cancels or varies a participation notice under section 98 of this Act after the obligation imposed by that notice has come into effect he may award compensation to the applicant under subsection (4) below if it appears to him that the applicant has suffered—

(a) in a case where the notice is cancelled, any loss attributable to his participation in the scheme in question; or

(b) in a case where the notice is varied by excluding from it any service operated by the applicant, any loss attributable to his participation in that scheme in respect of that service.

(3) Where on determining an application under section 99 of this Act the Secretary of State finds that the authority or authorities responsible for administration of the scheme in question have failed to comply with their obligation under section 93(6) of this Act, he may award compensation to the applicant under subsection (4) below if it appears to him that the applicant has suffered any loss attributable to that failure.

(4) In any case to which subsection (2) or (3) above applies the Secretary of State may by notice in writing require the authority responsible for administration of the scheme in question or (as the case may be) the authorities so responsible in such proportions as may be specified in the notice to pay to the applicant such an amount by way of compensation in respect of the loss there mentioned as may be so specified.

(5) The Secretary of State may if he thinks fit appoint a person to determine an application under section 98 or 99 of this Act on his behalf; and references in those sections and in subsections (2) to (4) above to the Secretary of State shall be read as including references to a person so appointed.

(6) Regulations under this section may prescribe the procedure to be followed in connection with applications under sections 98 and 99 of this Act and may in particular (but without prejudice to the generality of that) include provision—

(a) as to the conduct of any proceedings held in connection with any such application; and

(b) enabling the Secretary of State to require either the applicant or the authority or authorities responsible for administration of the scheme in question, or both or all of them, to pay such sum as the Secretary of State may determine towards any expenses incurred by him in connection with the determination of the application.

(7) Where a requirement under subsection (4) above is imposed on more than one authority, the liability of the authorities concerned to the applicant—

(a) shall extend to the whole of the amount specified in the notice imposing the requirement; and

(b) shall be both joint and several;

but if any such authority make any payment, in or towards the discharge of that liability, of an amount exceeding the amount representing any proportion specified in the notice as that authority’s share, that authority shall be entitled to recover an appropriate contribution (determined by reference to the proportions specified in that notice) from the other authority or authorities concerned.

(8) Any sums paid to the Secretary of State by virtue of subsection (6)(b) above shall be paid into the Consolidated Fund.

Enforcement of participation in travel concession schemes

101

(1) If during any period an operator of any service who is under an obligation under section 97 of this Act to provide travel concessions in accordance with a scheme under section 93 of this Act for persons travelling on that service systematically fails to comply with that obligation he shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(2) Where an offence under this section committed by a body corporate is proved to have been committed with the consent or connivance of, or to have been attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or a person who was purporting to act in any such capacity, he as well as the body corporate shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

(3) Where the affairs of a body corporate are managed by its members, subsection (2) above shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

(4) Proceedings for an offence under this section shall not, in England and Wales, be instituted except by the authority, or any one of the authorities, responsible for administration of the scheme in question or by or with the consent of the Director of Public Prosecutions (and any such authority who would not apart from this subsection have power to bring such proceedings shall accordingly have that power).

Application of Passenger Transport Executive's financial plan to expenditure on travel concessions under schemes

102

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Travel concessions apart from schemes

Subsidies for travel concessions

103

(1) The payments provided for under an agreement providing for service subsidies entered into by an authority responsible for expenditure on public passenger transport services may not include payments in respect of the provision of travel concessions except as provided below in this section.

(2) Subject to subsection (3) below, provision may be included in any such agreement for the making of payments by the authority in question to the person providing the service to which the agreement relates in respect of the provision of travel concessions on journeys on that service or any part of it for any description of persons eligible in accordance with section 93(7) of this Act to receive travel concessions under a travel concession scheme under that section.

(3) Subsection (2) above only applies where the concessions in question are not available, or not available to that description of persons, under any such scheme administered by the authority concerned or by that authority acting jointly with any other authority or authorities or under section 145A(1) or 145B(1) of the Transport Act 2000.

Travel concessions on services provided by Passenger Transport Executives

104

(1) A Passenger Transport Executive may not in exercise of their powers under section 10(1)(xiii) of the 1968 Act (power of Passenger Transport Executive to charge for services and waive their charges, etc.) provide travel concessions for persons travelling on any public passenger transport service provided by the Executive otherwise than in accordance with a scheme established under section 93 of this Act or in accordance with section 145A(1) of the Transport Act 2000, except where those concessions are provided under any agreement or arrangements under which the whole of the cost of providing those concessions is to be met by a person other than that Executive or the Authority for that Executive’s area.

(2) The approval of the Authority for an integrated transport area or a passenger transport area under section 15(2) of the 1968 Act (approval of Authority required for alterations by Executive in general level of charges and for reduction or waiver of charges by Executive) shall not be required for travel concessions granted by the Passenger Transport Executive for that area for persons travelling on any public passenger transport service provided by the Executive if those concessions are granted—

(a) in accordance with any scheme established under section 93 of this Act by any authority other than the Authority for that Executive’s area or (as the case may be) by authorities who do not include that Authority; ...

(aa) in accordance with section 145A(1) of the Transport Act 2000; or

(b) where that Executive’s area is in England and Wales, in pursuance of arrangements made with that Executive —

(i) by any local authority within the meaning of the Care Act 2014 in the discharge of their functions under Part 1 of that Act (meeting needs for care and support), or

(ii) by any local authority within the meaning of the Social Services and Well-being (Wales) Act 2014 in the discharge of their functions under Part 4 of that Act (meeting needs).

or correspond to travel concessions under any scheme established under section 93 of this Act by the Authority for that Executive’s area or (as the case may be) by authorities who include that Passenger Transport Authority.

(3) For the purposes of subsection (2) above, travel concessions granted by the Executive for an integrated transport area or a passenger transport area on any such service correspond to travel concessions under any such scheme if they are—

(a) of the same value;

(b) available subject to the same terms, limitations or conditions; and

as the travel concessions provided under that scheme.

(4) In this section “Authority”, in relation to an area, means the Integrated Transport Authority or, as the case may be, the Passenger Transport Authority for that area.

Travel concessions on services provided by local authorities

105

(1) Where the council of any county or district in England and Wales or of any local government area in Scotland are operating any public passenger transport service, they shall have power to provide travel concessions for persons travelling on that service in accordance with a scheme established under section 93 of this Act or in accordance with section 145A(1) or 145B(1) of the Transport Act 2000.

(2) In respect of travel concessions provided under this section, any such council may, if they think fit, from time to time transfer to the credit of the account of their transport undertaking sums from the general . . . fund or, where that council is the council of any local governmentarea in Scotland, from the general fund (within the meaning of section 93 of the Local Government (Scotland) Act 1973).

(2A) In subsection (2) above, the reference to the general fund shall be read, in relation to Wales, as a reference to the council fund.

(3) Sums so transferred must not exceed the cost to the council concerned of providing the concessions or so much of that cost as would not apart from subsection (2) above fall to be met out of the fund there mentioned.

Grants for transport facilities and services

106

(1) Any authority to whom this section applies, or any two or more such authorities acting jointly, may make, in such cases and subject to such terms and conditions as they think fit, grants to any other person towards expenditure incurred or to be incurred by that person in providing, maintaining or improving—

(a) any vehicle, equipment or other facilities provided wholly or mainly for the purpose of facilitating travel by members of the public who are disabled; or

(b) any equipment or other facilities specially designed or adapted for that purpose which are incorporated in any vehicle, equipment or other facilities not provided wholly or mainly for that purpose.

(2) Subject to subsection (3) below, any such authority, or any two or more such authorities acting jointly, may make, in such cases and subject to such terms and conditions as they think fit, grants to any person providing public passenger transport services towards expenditure incurred or to be incurred by that person for the purpose of—

(a) maintaining or improving facilities for public passenger transport, other than facilities provided wholly or mainly for use for the purpose of or in connection with excepted services; or

(b) facilitating or improving the operation of public passenger transport services, other than excepted services;

in the area of that authority or (as the case may be) in the area comprising the areas of both or all those authorities.

In this subsection “excepted services” means services for the carriage of passengers by road which require a PSV operator’s licence (within the meaning of Part IV of this Act).

(3) Subsection (2) above shall not apply in relation to expenditure appearing to the authority or authorities in question to be of a capital nature.

(4) This section applies to the following authorities—

(a) any Integrated Transport Authority, Passenger Transport Authority or Passenger Transport Executive;

(aa) any combined authority;

(ab) any combined county authority;

(b) the council of any county or district in England and Wales;

(d) any regional or islands council in Scotland.

Grants for services for disabled people in London

Grants by London Regional Transport

107

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Grants for services in rural areas

Grants for establishment, etc., of rural passenger services in Wales and Scotland

108

(1) Subject to the following provisions of this section, the Secretary of State may, with the approval of the Treasury, make in such cases as he thinks fit a grant to any person for the purpose of securing the establishment, continuance or improvement of any public passenger transport service which in the opinion of the Secretary of State is or will be for the benefit of persons residing in any rural area in Wales or Scotland.

(2) In the case of any grant under this section for the purpose of securing the continuance of an existing service—

(a) the service must be one which was established with the assistance of a grant under this section; and

(b) the grant must be for securing its continuance during such period from the time when it was first operated as appears to the Secretary of State to be appropriate in the case of that service.

(3) In the case of any grant under this section for the purpose of securing the improvement of an existing service the improvement in view must be one which appears to the Secretary of State to involve an innovative approach to the use of vehicles, equipment or other facilities in providing the service.

(4) Grants under this section shall be of such amount and subject to such conditions (including conditions requiring their repayment in specified circumstances) as the Secretary of State may, with the approval of the Treasury, determine, either generally or in relation to any particular cases or classes of case.

Transitional rural bus grants

109

(1) Subject to the following provisions of this section, the Secretary of State may, with the approval of the Treasury, make in such cases as he thinks fit a grant to any person in respect of qualifying mileage run at any time during the period of four years beginning with the date on which this section comes into force by vehicles used by that person in operating a service which at the time in question is a service eligible for grant under this section.

(2) A service is eligible for grant under this section at any time when—

(a) it is a service qualifying for fuel duty grant;

(b) it is being operated wholly or partly within a rural area in Great Britain (outside London); and

and in subsection (1) above “qualifying mileage” means, in relation to any vehicle, mileage run by that vehicle within any such rural area.

(3) Grants under this section shall be of such amount and subject to such conditions (including conditions requiring their repayment in specified circumstances) as the Secretary of State may, with the approval of the Treasury, determine, either generally or in relation to any particular cases or classes of case.

Miscellaneous and supplementary

Grants towards duty charged on bus fuel

110

(1) In section 92(1) of the Finance Act 1965 (grants to operators of bus services towards duty charged on bus fuel)—

(a) the words “any bus service” shall be omitted; and

(b) there shall be inserted at the end the words—

a bus service which is of a description specified for the purposes of this section and which meets any conditions which may be specified in relation to that description of service.

(2) For subsection (8) of that section there shall be substituted the following subsections—

(8) In this section— - “bus service” means a local service within the meaning of the Transport Act 1985 other than an excursion or tour within the meaning of that Act, being a service which is either— (a) registered under Part I of that Act; or (b) provided under a London local service licence granted under Part II of that Act or exempt by virtue of section 36 of that Act (London bus services under control of London Regional Transport) from the requirement of a London local service licence; - “operator” has the same meaning, in relation to a bus service, as in that Act; and - “specified” means specified in regulations made by the Secretary of State by statutory instrument. (8A) Any statutory instrument containing regulations made under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Unregistered and unreliable local services: reduction of fuel duty grant

111

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation of Part V

112

(1) In this Part of this Act—

(a) references to authorities responsible for expenditure on public passenger transport services shall be read in accordance with section 88(8) of this Act;

(b) references to service subsidies are references to the payments that fall to be made by any such authority under any agreement providing for service subsidies;

(c) references to the current reimbursement arrangements for eligible service operators participating in any scheme under section 93 of this Act shall be read in accordance with section 94(5) of this Act;

(d) references to a participation notice shall be read in accordance with section 97(2) of this Act;

(e) references to securing the provision of a service include references to securing the provision of a service by way of continuance of an existing service, and references in any other context to the provision of a service are to be read consistently with that; and

(f) “travel concession” means the reduction or waiver of a fare either absolutely or subject to terms, limitations or conditions.

(2) For the purposes of this Part of this Act, a service is a service qualifying for fuel duty grant at any time when fuel used in operating the service falls to be taken into account for the purpose of calculating grant payable to the operator of the service under section 92 of the Finance Act 1965 (grants to operators of bus services towards duty charged on bus fuel).

Part VI — Miscellaneous and General

Exclusion of requirement to co-ordinate services of public sector transport undertakings

Repeal of section 24(3) of the 1968 Act

113

(1) Section 24(3) of the 1968 Act (which imposes on the National Bus Company, the Railways Board and the Scottish Transport Group a duty to co-operate with one another for the purpose of co-ordinating the passenger transport services provided respectively by them or by their subsidiaries) shall cease to have effect.

(2) In subsection (4) of that section, for the words “Subsections (2) and (3)” there shall be substituted the words “Subsection (2)”.

Competition law: bus services and bus stations

Monopoly references with respect to bus services

114

(1) In section 11 of the Competition Act 1980 (references of public bodies and certain other persons subject to statutory controls to the Monopolies and Mergers Commission), in subsection (3) (which lists the persons who may be the subject of such a reference)—

(a) for paragraph (b) (any person not within paragraph (a) providing a bus service within the meaning of certain enactments) there shall be substituted the following paragraph—

(b) any person (not falling within paragraph (a) above) who provides in Northern Ireland a bus service within the meaning of section 14 of the Finance Act (Northern Ireland) 1966; or

; and

(b) in paragraph (bb), for the words “last-mentioned Act” there shall be substituted the words “ London Regional Transport Act 1984”.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application of Restrictive Trade Practices Act 1976 to agreements between road passenger transport operators

115

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