59 Transfer of bus undertakings of Executives to companies owned by Authorities.
(1) Before such date as the Secretary of State may specify in the case of any Passenger Transport Executive in a direction given to that Executive, the Executive shall form a company for the purpose of carrying on—
(a) activities of any description carried on by the Executive in or for the purposes of the provision of any service for the carriage of passengers by road currently provided by the Executive in exercise of any of their powers under section 10(1) of the 1968 Act; and
(b) any activities which appear to the Executive to be incidental to or connected with any activities within paragraph (a) above or to be capable of being conveniently carried on in association with any such activities.
(2) The company shall be a company limited by shares registered under the Companies Act 1985.
(3) Where the Executive for any passenger transport area have formed a company in pursuance of this section, the Executive shall, before such date as the Secretary of State may specify in a direction given to the Executive, submit to the Secretary of State a scheme providing for the transfer to the company of any property, rights or liabilities of the Executive, or of any wholly-owned subsidiary of theirs, which it appears to the Executive to be appropriate to transfer to that company.
(4) In preparing a scheme in pursuance of subsection (3) above, the Executive in question shall take into account any advice given by the Secretary of State as to the provisions he regards as appropriate for inclusion in the scheme (and in particular, but without prejudice to the generality of that, as to the description of property, rights and liabilities it is in his view appropriate to transfer to the company).
(5) A scheme under subsection (3) above shall not come into force until it has been approved by the Secretary of State or until such date as the Secretary of State may, in giving his approval, specify; and the Secretary of State may approve a scheme either without modifications or with such modifications as, after consultation with the Executive and with the Passenger Transport Authority for the area in question, he thinks fit.
(6) If the Secretary of State is not satisfied that a scheme submitted under subsection (3) above accords with any such advice given by him as is mentioned in subsection (4) above, or would do so with appropriate modifications, he may, after consultation with the Executive and with the Passenger Transport Authority for the area in question, instead of approving the scheme substitute for it a scheme of his own, to come into force on such date as may be specified in the scheme.
(7) On the coming into force of a scheme under this section the property, rights and liabilities affected by the scheme shall, subject to section 129 of this Act, be transferred and vest in accordance with the scheme.
(8) Following the transfer to the company under subsection (7) above of the property, rights and liabilities affected by the scheme, the Executive shall, before such date as the Secretary of State may specify in a direction given to the Executive, transfer all shares in or other securities of the company to the Passenger Transport Authority for their area.
(9) Where—
(a) the property, rights and liabilities transferred under subsection (7) above include the whole of the undertaking of any wholly-owned subsidiary of the Executive; and
(b) it appears to the Executive that no further action is required on the part of that subsidiary to perfect any transfer under that subsection;
the Executive shall secure that that subsidiary is wound up.
(10) Without prejudice to any other restriction on their powers, a Passenger Transport Executive may not dispose of any shares in or other securities of a company formed by that Executive in pursuance of this section otherwise than in accordance with subsection (8) above.
60 Exclusion of public sector co-operation requirements and bus operating powers.
(1) This section applies where in the case of any passenger transport area a company (referred to below in this Part of this Act, in relation to that area, as “the initial company”) has been formed by the Passenger Transport Executive for that area (“the Executive”) in pursuance of section 59 of this Act.
(2) At any time after the Secretary of State has given to the Executive a direction under subsection (3) of that section the Secretary of State may by order provide that the Executive shall cease, on a day specified in the order, to be under the duty imposed by section 24(2) of the 1968 Act (duty to co-operate with the National Bus Company and the Scottish Transport Group and to enter into agreements for that purpose).
(3) Where an order is made under subsection (2) above, any duty of the National Bus Company and the Scottish Transport Group under section 24(2) of the 1968 Act to co-operate with the Executive (or with each other) shall cease on the day specified in the order to apply in relation to the Executive’s area.
(4) Any order under subsection (2) above may include provision for the termination of any agreements made under section 24(2) to which the Executive are a party, on such terms and such dates as may be specified in relation to those agreements in the order (and different terms and dates may be so specified in relation to different agreements).
(5) At any time after the transfer required under section 59(8) of shares in or other securities of the initial company to the Passenger Transport Authority for the Executive’s area has taken place the Secretary of State may by order provide that the Executive shall cease, on a day specified in the order, to have the powers under section 10(1)(i) and (viii) of the 1968 Act (powers to carry passengers by road and to let passenger vehicles on hire with or without trailers for the carriage of goods).
(6) Where an order is made under subsection (5) above in relation to the Executive, section 16(2) of the 1968 Act (which relates to the provision of special information in the annual report of Authorities and Executives as to certain businesses of providing services for the carriage of passengers by road) shall cease to apply in relation to any accounting period of the Executive beginning on or after the day specified in the order.
(7) The Secretary of State may by order provide for the repeal of—
(a) section 24(2) of the 1968 Act; and
(b) section 10(1)(i) and (viii) of that Act;
on the date on which, by virtue of the cumulative effect of orders made under this section, there ceases to be any Passenger Transport Executive in Great Britain who are under the duty imposed by section 24(2) or have the powers under section 10(1)(i) and (viii).
(8) Any order made under subsection (7) above may contain such supplementary, incidental and consequential provisions (including provisions modifying any enactment contained in this or any other Act) as may appear to the Secretary of State to be necessary or expedient in consequence of any repeals made by the order.
61 Division of undertakings of companies formed under section 59.
(1) Where in the case of any passenger transport area the transfer required under section 59(8) of this Act of shares in or other securities of the initial company to the Passenger Transport Authority for that area has taken place, the Secretary of State may by a direction given to that Authority require the Authority to submit to him in accordance with the following provisions of this section written proposals for the division of the undertaking of the initial company among two or more companies to be formed in pursuance of the proposals.
(2) Where the initial company has any wholly-owned subsidiaries, the proposals may, instead of or (as the case may be) in addition to providing for the transfer to any one or more of those companies of the shares in or other securities of any such subsidiary comprised in the initial company’s undertaking, provide for—
(a) the division among those companies; or
(b) the transfer to any one of them;
of the whole or any part of the undertaking, or of any property, rights or liabilities, of that subsidiary.
(3) The proposals shall be submitted to the Secretary of State before the end of such period as may be specified in the direction.
(4) The proposals shall—
(a) provide for each company to be formed in pursuance of the proposals (referred to below in this section as a transferee company) to be a company limited by shares and registered under the Companies Act 1985;
(b) broadly describe the manner in which the undertaking of the initial company, and the whole or any part of the undertaking of any wholly-owned subsidiary of the initial company to which the proposals relate, is to be divided among the transferee companies or (as the case may be) transferred in accordance with the proposals to any one of those companies; and
(c) provide for the winding up of the initial company, and of any wholly-owned subsidiary of the initial company the whole of whose undertaking is to be transferred in accordance with the proposals to any one or more of the transferee companies, on completion of the transfer of that company’s or (as the case may be) of that subsidiary’s undertaking.
(5) In preparing their proposals the Authority shall take into account any advice given by the Secretary of State as to the provisions he regards as appropriate for inclusion in the proposals (and in particular, but without prejudice to the generality of that, as to the description of property, rights and liabilities of the initial company and of any wholly-owned subsidiary of the initial company it is in his view appropriate to transfer to each of the transferee companies).
(6) The Secretary of State may approve the proposals either without modifications or with such modifications as, after consultation with the Authority, he thinks fit.
(7) If the Secretary of State is not satisfied that the proposals accord with any such advice given by him as is mentioned in subsection (5) above, or would do so with appropriate modifications, he may, after consultation with the Authority, instead of approving the proposals substitute for them a plan of his own.
(8) When the Secretary of State has approved the proposals or substituted for them a plan of his own, the Authority shall form each transferee company in accordance with the proposals as approved by the Secretary of State or (as the case may be) in accordance with the Secretary of State’s plan, and secure the registration of that company under the Companies Act 1985, before such date as the Secretary of State may specify in relation to that company in giving his approval to the proposals or (as the case may be) in that plan.
(9) When all the transferee companies have been formed in accordance with the proposals as so approved or (as the case may be) in accordance with the Secretary of State’s plan, the Authority shall, before such date as the Secretary of State may specify in a direction given to the Authority, submit to the Secretary of State a scheme providing for the transfer to each transferee company of any property, rights and liabilities—
(a) of the initial company; and
(b) of any wholly-owned subsidiary of the initial company;
which are to be transferred in accordance with those proposals or (as the case may be) in accordance with that plan to that transferee company.
(10) A scheme under subsection (9) above shall not come into force until it has been approved by the Secretary of State or until such date as the Secretary of State may, in giving his approval, specify; and the Secretary of State may approve a scheme either without modifications or with such modifications as, after consultation with the Authority, he thinks fit.
(11) On the coming into force of a scheme under subsection (9) above the property, rights and liabilities affected by the scheme shall, subject to section 129 of this Act, be transferred and vest in accordance with the scheme.
(12) When it appears to the Authority that no further action is required on the part of the initial company to perfect any transfer effected by the scheme, the Authority shall secure that the initial company is wound up in accordance with the proposals as approved by the Secretary of State or (as the case may be) in accordance with the Secretary of State’s plan.
(13) Subsection (12) above shall apply in relation to any subsidiary of the initial company the whole of whose undertaking is transferred under the scheme to one or more of the transferee companies as it applies in relation to the initial company.
62 Protection of employee benefits on transfer and division of bus undertakings.
(1) In this section, as it applies in relation to the Passenger Transport Executive or (as the case may be) in relation to the Passenger Transport Authority for any passenger transport area—
“the first transfer” means the transfer under section 59(7) of this Act to the initial company of property, rights and liabilities of the Executive for that area; and
“the second transfer” means the transfer under section 61(11) of this Act to companies formed under that section of property, rights and liabilities of the initial company;
and “the first transfer date” and “the second transfer date” mean respectively the date on which the first transfer and the date on which the second transfer takes effect.
(2) The Passenger Transport Executive for any passenger transport area shall have power to make, in such manner as they think fit, such provision as appears to them to be appropriate in connection with either the first or the second transfer for the maintenance to any extent of any concession, benefit or privilege of a description enjoyed immediately before the first transfer date by—
(a) persons who then were or had been employed in such part of the Executive’s undertaking, or of the undertaking of any wholly-owned subsidiary of the Executive, as was transferred on that date to the initial company; or
(b) members of the families of any such persons.
(3) Subject to subsection (4) below, the Passenger Transport Authority for any passenger transport area shall have power to make, in such manner as they think fit, such provision as appears to them to be appropriate in connection with the second transfer for the maintenance to any extent of any concession, benefit or privilege of a description enjoyed immediately before the second transfer date by—
(a) persons who then were or had been employed in any undertaking or part of an undertaking transferred on that date to a company formed under section 61 of this Act; or
(b) members of the families of any such persons.
(4) Subsection (3) above shall not apply to any concession, benefit or privilege of a description to which subsection (2) above applies.
(5) Where provision for the maintenance of a concession, benefit or privilege of any description may be made under subsection (2) or (3) above provision may instead be made, in any cases or classes of case to which that subsection applies, for the making of any payment or the provision of any other concession, benefit or privilege in compensation for the loss or (as the case may be) for any reduction or limitation of concessions, benefits or privileges of that description.
63 Functions of local councils with respect to passenger transport in areas other than integrated transport areas and passenger transport areas.
(1) In each non-metropolitan county of England and Wales it shall be the duty of the county council—
(a) to secure the provision of such public passenger transport services as the council consider it appropriate to secure to meet any public transport requirements within the county which would not in their view be met apart from any action taken by them for that purpose; . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) It shall be the duty of a . . . council in Scotland, in relation to any part of their area which is not a passenger transport area—
(a) to secure the provision of such public passenger transport services as the council consider it appropriate to secure to meet any public transport requirements within their area which would not in their view be met apart from any action taken by them for that purpose; and
(b) to formulate from time to time general policies as to the descriptions of services they propose to secure under paragraph (a) above.
(3) In formulating policies under subsection . . . (2)(b) above with respect to the descriptions of services they propose to secure under subsection . . . (2)(a) above, a council shall have regard to any measures they are required or propose to take for meeting any transport requirements in exercise or performance of—
(a) any of their functions . . . as an education authority; or
(b) any of their . . . social work functions.
(4) A district council in England or a relevant county council . . . shall have power to secure the provision of such public passenger transport services as they consider it appropriate to secure to meet any public transport requirements within their area which would not in their view be met apart from any action taken by them for that purpose.
(5) For the purpose of securing the provision of any service under subsection (1)(a) or (2)(a) or (as the case may be) under subsection (4) above any council shall have power to enter into an agreement providing for service subsidies; but their power to do so—
(a) in England and Wales, shall be exercisable only where the service in question would not be provided, or would not be provided to a particular standard, without subsidy;
(aa) in Scotland, shall be exercisable only where the service in question would not be provided without subsidy; and
(b) is subject to sections 89 to 92 of this Act.
(5A) The reference in subsection (5)(a) above to the standard to which a service is provided includes—
(a) the frequency or timing of the service;
(b) the days, or times of day, when the service is provided;
(c) the vehicles used to provide the service.
(6) A non-metropolitan county council in England and Wales or, in Scotland, a . . . council shall have power to take any measures that appear to them to be appropriate for the purpose of or in connection with promoting, so far as relates to their area—
(a) the availability of public passenger transport services other than subsidised services and the operation of such services, in conjunction with each other and with any available subsidised services, so as to meet any public transport requirements the council consider it appropriate to meet; or
(b) the convenience of the public (including persons who are elderly or disabled) in using all available public passenger transport services (whether subsidised or not).
(7) It shall be the duty of a county council or (as the case may be) of a regional or islands council, in exercising their power under subsection (6) above, to have regard to a combination of economy, efficiency and effectiveness.
(8) It shall be the duty of any council, in exercising or performing any of their functions under the preceding provisions of this section, to have regard to the transport needs of members of the public who are elderly or disabled ....
(8A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8B) Where the whole or any part of the area of a county council in England falls within the area of a combined authority or a combined county authority, references in this section to the council are—
(a) where the combined authority or combined county authority has completed its first full financial year, references to the combined authority or combined county authority (instead of to the council), and
(b) until that time, references to the combined authority or combined county authority as well as to the council.
(8C) Subsection (8B) does not apply to any such references in subsection (4) or (9A).
(9) References in subsection (6) above to subsidised services are references to services provided under an agreement providing for service subsidies entered into—
(a) by the council in question or by any other county or district council or regional or islands council under this section; or
(b) by the Passenger Transport Executive for any integrated transport area or passenger transport area under section 9A(4) of the 1968 Act.
(9A) A “relevant county council” for the purposes of subsection (4) is a county council in England the whole or any part of whose area falls within the area of a combined authority or a combined county authority.
(10) In this Act—
(a) “public passenger transport services” means all those services on which members of the public rely for getting from place to place, when not relying on private facilities of their own, including school transport but not—
(i) services provided under permits under section 19 of this Act, other than services provided wholly or mainly to meet the needs of members of the public who are elderly or disabled; or
(ii) excursions or tours; and
(b) references, in relation to any Passenger Transport Executive, non-metropolitan county or district council or regional or islands council, to agreements providing for service subsidies are references to agreements under which any person undertakes to provide a public passenger transport service of any description on terms which include provision for the making of payments to that person by that Executive or council.
64 Consultation and publicity with respect to policies as to services.
(1) When considering from time to time the formulation of policies for the purposes of section 63(2)(b) of this Act, any council to whom that provision applies shall consult—
(a) with every Integrated Transport Authority, combined authority, combined county authority, Passenger Transport Authority, county council orregional or islands council whose area may be affected by those policies; and
(b) either with persons operating public passenger transport services within their area or with organisations appearing to the council to be representative of such persons;
. . .
(2) As soon as practicable after any occasion when they formulate new or altered policies for those purposes, any such council shall publish a statement of all policies so formulated by them on that or any previous occasion which they propose for the time being to follow in the performance of their duty to secure services . . . under section 63(2)(a).
(3) When any such council publish such a statement, they shall send a copy of the statement—
(a) to each Authority or council whom they were required to consult under subsection (1)(a) above; and
(b) to each of the persons or (as the case may be) organisations whom they consulted under subsection (1)(b) above;
in relation to the formulation of their policies on the occasion in question.
(4) The council shall also—
(a) cause a copy of the statement last published by them under subsection (2) above to be made available for inspection (at all reasonable hours) at such places as they think fit; and
(b) give notice, by such means as they think expedient for bringing it to the attention of the public, as to the places at which a copy of that statement may be inspected.
65 Co-operation between certain councils and London Regional Transport.
(1) Subject to the following provisions of this section, any non-metropolitan county or district council in England and Wales and Transport for London or any of its subsidiaries (within the meaning of the Greater London Authority Act 1999) shall each have power to enter into any agreement or arrangements with the other under which that council or (as the case may be) Transport for London or that subsidiary undertake to contribute towards any expenditure incurred by the other party to the agreement or arrangements in making payments to a person providing a public passenger transport service under any agreement entered into by that other party in exercise of any power that other party may have to secure the provision of that service.
(2) The agreement under which the payments are made must have been entered into in pursuance of the agreement or arrangements between the council in question and Transport for London or any of its subsidiaries (within the meaning of the Greater London Authority Act 1999) .
(3) Transport for London shall not exercise its powers under section 156(2) or (3) of the Greater London Authority Act 1999, and no subsidiary of Transport for London shall enter into a transport subsidiary’s agreement (within the meaning of section 169 of that Act), in pursuance of any agreement or arrangement entered into under this section except—
(a) in a case where the service in question would not be provided without a subsidy; and
(b) in accordance with sections 89 to 92 of this Act.
(3A) Where the whole or any part of the area of a county council in England falls within the area of a combined authority or a combined county authority, references in this section to the council are—
(a) where the combined authority or combined county authority has completed its first full financial year, references to the combined authority or combined county authority (instead of to the council), and
(b) until that time, references to the combined authority or combined county authority as well as to the council.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
66 Exclusion of powers of certain councils to run bus undertakings.
(1) Subject to section 71 of this Act and subsections (1A) and (2) below and to sections 123O and 132C of the Transport Act 2000, but notwithstanding anything in any other statutory provision, a non-metropolitan district council in England ... or, in Scotland, a council (other than the council for Orkney Islands, Shetland Islands or Western Isles) shall not have power to provide a service for the carriage of passengers by road which requires a PSV operator’s licence.
(1A) Subsection (1) does not prevent a non-metropolitan district council in England from forming a company for the purpose of providing a local service.
(2) Subsection (1) above shall not have effect in relation to any council who, at the time when this section comes into force, are providing any such service until the end of such period as may be specified by order made by the Secretary of State.
References below in this Part of this Act to a council operating a bus undertaking are references to any council to whom this subsection applies.
(3) Any order under subsection (2) above may apply to all councils within that subsection who are not for the time being exempt by virtue of section 71 of this Act from subsection (1) above, to any class of such councils, or to any such council specified in the order; and different periods may be specified by any such order in relation to different councils or classes of councils to whom it applies.
(4) Any order under subsection (2) above shall, in relation to every period specified in the order for the purposes of that subsection (“the primary period”), specify also a period ending before the primary period as the period allowed to councils to whom the primary period applies for complying with such of the requirements of sections 67 to 69 of this Act as are applicable to them.
(5) A period specified by virtue of subsection (4) above in an order under subsection (2) above is referred to in those sections, in relation to any council to whom it applies, as the council’s preparatory period.
(6) Any order amending a previous order under subsection (2) above, in so far as it extends any period specified in the previous order for the purposes of that subsection, may be framed so as to have effect from a date earlier than the making of the order.
(7) For the purposes of this Part of this Act—
(a) a service for the carriage of passengers by road is a service which requires a PSV operator’s licence if vehicles used in providing the service are used in such circumstances that a PSV operator’s licence is required in respect of that use;
(b) any council who have made (whether alone or jointly with any other authority or authorities) arrangements under any enactment for the discharge by any other authority or person of that council’s functions with respect to the operation of any such service shall be taken to be providing that service at any time when it is being provided under those arrangements; and
(c) references, in relation to any council operating a bus undertaking, to the council’s bus undertaking are references (according to the context) to—
(i) all activities carried on, whether by the council themselves or by any other authority or person in pursuance of any such arrangements as are mentioned in paragraph (b) above or otherwise, in or for the purposes of the provision by the council of any such service; or
(ii) all property of the council used or appropriated for use and all rights and liabilities of the council subsisting for the purposes of any such activities.
67 Formation of companies to run council bus undertakings.
(1) Where an order is made under section 66(2) of this Act, the council or (as the case may be) each of the councils to whom the order applies shall, before the end of that council’s preparatory period, form (whether alone or jointly with any other council operating a bus undertaking) one or more companies for the purpose of carrying on—
(a) activities of any description included among the activities of the bus undertaking of that council or (as the case may be) of any of the councils concerned in the formation of the company or companies in question;
(b) activities of any other description included among the activities of any joint undertaking of which that council’s bus undertaking, or (as the case may be) the bus undertaking of any council so concerned, forms part; and
(c) any other activities which appear to the council or (as the case may be) to both or all of the councils so concerned to be incidental to or connected with any activities within paragraph (a) or (b) above or to be capable of being conveniently carried on in association with any such activities.
(2) Any company formed under this section shall be a company limited by shares registered under the Companies Act 1985.
(3) Subject to subsections (4) and (5) below, a council’s bus undertaking shall be regarded for the purposes of this Part of this Act as forming part of a joint undertaking if the services for the carriage of passengers by road provided in the course of the activities of the council’s bus undertaking are wholly or mainly provided under any agreement for—
(a) the provision or operation of those services by a body acting on the joint behalf of that council and one or more other councils; or
(b) the operation of those services by any company operating those services in conjunction with services for the carriage of passengers by road provided by that company.
(4) Subsection (3)(a) above only applies where the agreement provides for the distribution among the parties on its termination of—
(a) all assets, or the proceeds of all assets, used or appropriated for use for the purpose of providing services for the carriage of passengers by road under the agreement; or
(b) all such assets or proceeds excluding only land or the proceeds of disposal of land.
(5) Subsection (3)(b) above only applies where—
(a) the agreement includes provision for securing that the parties on termination of the agreement hold shares of equal value in assets required to be brought into account on termination of the agreement; and
(b) those assets include all assets so used or appropriated for use.
(6) References in this Part of this Act, in relation to a council whose bus undertaking forms part of a joint undertaking, to the joint undertaking are references to all activities carried on, or (according to the context) to all property used or appropriated for use and all rights and liabilities subsisting for the purposes of any activities carried on, in pursuance of the agreement by reference to which that council falls within subsection (3) above.
68 Schemes for transfer of individual council bus undertakings to companies formed under section 67.
(1) Subject to subsection (2) below, a council to whom section 67(1) of this Act applies shall, before the end of that council’s preparatory period, submit to the Secretary of State a scheme providing for the transfer to a company or companies formed by that council under that section of—
(a) such of the property, rights and liabilities of the council comprised in the council’s bus undertaking; and
(b) such other property, rights and liabilities of the council;
as it appears to the council to be appropriate to transfer to the company or companies in question.
(2) This section does not apply to a council whose bus undertaking forms part of a joint undertaking, except where any of the activities of the council’s bus undertaking (“the separate activities”) are carried on by the council otherwise than in pursuance of any such agreement as is mentioned in section 67(3) of this Act; and in the latter case the reference in subsection (1)(a) above to property, rights and liabilities of the council shall be read as limited to property used or appropriated for use and rights and liabilities subsisting for the purposes of the separate activities.
(3) Two or more councils to whom this section applies may submit a joint scheme for the purposes of subsection (1) above; and in any such case the scheme may provide for the transfer of any property, rights and liabilities within that subsection as it applies to any one of those councils to a company or companies formed under section 67 of this Act by any other of those councils.
(4) In preparing a scheme for the purposes of subsection (1) above the council or councils concerned shall take into account any advice given by the Secretary of State as to the provisions he regards as appropriate for inclusion in the scheme (and in particular, but without prejudice to the generality of that, as to the description of property, rights and liabilities it is in his view appropriate to transfer to the company or companies in question).
(5) A scheme under this section shall not come into force until it has been approved by the Secretary of State or until such date as the Secretary of State may, in giving his approval, specify; and the Secretary of State may approve a scheme either without modifications or with such modifications as, after consultation with the council or councils concerned, he thinks fit.
(6) If the Secretary of State is not satisfied that a scheme submitted under subsection (1) above accords with any such advice given by him as is mentioned in subsection (4) above, or would do so with appropriate modifications, he may, after consultation with the council or councils concerned, instead of approving the scheme substitute for it a scheme of his own, to come into force on such date as may be specified in the scheme.
(7) On the coming into force of a scheme under this section, the property, rights and liabilities affected by the scheme shall, subject to section 129 of this Act, be transferred and vest in accordance with the scheme.
69 Orders for transfer of joint undertakings to companies formed under section 67.
(1) This section applies to a council to whom section 67(1) of this Act applies whose bus undertaking forms part of a joint undertaking (referred to below in this section and in section 70 of this Act as a council participating in a joint undertaking).
(2) Any council participating in a joint undertaking shall, before the end of that council’s preparatory period, submit to the Secretary of State written proposals for the transfer to a company or companies formed by that council under section 67 of—
(a) such of the property, rights and liabilities comprised in that council’s share of the joint undertaking (whether or not then vested in that council); and
(b) such other property, rights and liabilities of the council;
as it appeals to the council to be appropriate to transfer to the company or companies in question.
(3) In any case within section 67(3)(a) of this Act both or all the councils participating in the joint undertaking may submit joint proposals for the purposes of subsection (2) above; and in any such case the proposals—
(a) may release to each council’s share of the joint undertaking and (without prejudice to that) to all property, rights and liabilities of the body carrying on that undertaking; and
(b) may provide for the transfer of any property, rights and liabilities within subsection (2) above as it applies to each of those councils to a company or companies formed under section 67 of this Act by any one or more of those councils.
(4) Any proposals submitted to the Secretary of State under this section must include proposals with respect to the terms on which the agreement under which the joint undertaking is carried on (referred to below in this section as the operating agreement) should be terminated.
(5) Individual proposals submitted to the Secretary of State under this section by a single council participating in a joint undertaking must include proposals for the division of that undertaking between the parties to it and the determination of the property, rights and liabilities to be allocated to each as his share.
(6) In preparing their proposals for the purposes of subsection (2) above the council or councils concerned shall take into account any advice given by the Secretary of State as to the provisions he regards as appropriate for inclusion in the proposals (and in particular, but without prejudice to the generality of that, as to the description of property, rights and liabilities it is in his view appropriate to transfer to the company or companies in question).
(7) Where in relation to any joint undertaking the Secretary of State has received under this section proposals submitted to him (whether individually or jointly) by the council or (if more than one) by both or all of the councils participating in the undertaking, he shall, after considering those proposals and consulting the council or councils concerned, make an order in accordance with the following provisions of this section and section 70 of this Act.
(8) Before making such an order in any case within section 67(3)(b) of this Act the Secretary of State shall—
(a) give the company carrying on the joint undertaking an opportunity of making written representations with respect to any proposals submitted to the Secretary of State in relation to that undertaking by the council concerned; and
(b) consider any such representations made to him within such time as he may allow for the purpose.
(9) An order made by the Secretary of State under this section with respect to any joint undertaking may make provision—
(a) where joint proposals were submitted under subsection (3) above with respect to that undertaking, for the transfer in accordance with the proposals of—
(i) all property, rights and liabilities of the body carrying on that undertaking; and
(ii) such of the property, rights and liabilities of the councils participating in the joint undertaking as may be specified in the order;
(b) where individual proposals were submitted by any council participating in the joint undertaking, for the division of that undertaking between the parties to it and the determination of the property, rights and liabilities to be allocated to each as his share;
(c) in a case within paragraph (b) above, for the transfer in accordance with the proposals submitted by any such council of—
(i) such of the property, rights and liabilities comprised in that council’s share of the joint undertaking as determined by or under the order (whether or not then vested in that council) as may be specified in the order; and
(ii) such other property, rights and liabilities of that council as may be so specified;
and, in any case within section 67(3)(b) of this Act, for the transfer to the company carrying on the joint undertaking of any property, rights and liabilities of the council concerned which are comprised in that company’s share as determined by or under the order;
(d) for the transfer to such person as may be so specified from any council participating in the joint undertaking, or from the body carrying on the undertaking, of all such functions as may be determined by or under the order, being functions conferred or imposed on that council or body under any Act for the purposes of or in connection with the joint undertaking;
(e) for determining the effect of any transfer under the order in relation to persons employed in the joint undertaking or any part of it;
(f) for the protection of the interests of persons who by virtue of any transfer under the order fall to be treated as persons employed by the person taking that transfer;
(g) for the termination of the operating agreement on such terms as may be specified in the order; and
(h) in any case within section 67(3)(a) of this Act, for the dissolution of the body carrying on the joint undertaking.
(10) An order made by the Secretary of State under this section—
(a) may give effect to the proposals submitted to him under this section either without modifications or with such modifications as, after consultation with the council or councils concerned, the Secretary of State thinks fit; or
(b) if the Secretary of State is not satisfied that the proposals accord with any such advice given by him as is mentioned in subsection (6) above, or would do so with appropriate modifications, may make such provision in substitution for those proposals as the Secretary of State, after such consultation, thinks fit;
and references in subsection (9) above to an order’s making provision for the transfer of any property, rights and liabilities in accordance with any such proposals shall be read as referring to those proposals as approved by the Secretary of State or to any provision made by the order by virtue of paragraph (b) above, as the case may require.
70 Supplementary provisions with respect to orders under section 69.
(1) Any order under section 69 of this Act may contain such supplementary, incidental and consequential provisions as the Secretary of State thinks necessary or expedient for the purposes of the order, and in particular (but without prejudice to the generality of that) may include provision—
(a) for the assumption by any council participating in the joint undertaking and by any person to whom any property, rights and liabilities are transferred under the order of such liabilities to one another as may be determined by or under the order to be appropriate having regard to the financial arrangements of that council before the severance from the other activities of the council of the joint undertaking or (as the case may be) of any activities of that council for the purposes of the joint undertaking;
(b) for the settlement by a court or otherwise of any dispute or other matter arising in connection with the order;
(c) for making in any statutory provision relating to, or to a class of undertakings which includes, the joint undertaking, such amendments or repeals as may appear to the Secretary of State to be required in consequence of any transfer under the order;
(d) for the making by any person to whom any property, rights and liabilities are transferred under the order to any council participating in the joint undertaking of payments by way of contributions to the cost of any adjustments arising from the severance mentioned in paragraph (a) above; and
(e) with respect to the consideration to be provided by any such person for any transfer under the order.
(2) Subject to subsection (3) below, any property, rights and liabilities for the transfer of which provision is made by an order under section 69 of this Act shall be transferred and vest in accordance with the order on such date or dates as may be appointed by the order for that purpose.
(3) Subject to the following provisions of this section, Schedule 4 to the 1968 Act (supplementary provisions as to certain transfers of property, rights and liabilities) shall apply to any transfer under subsection (2) above; and subsection (2) above shall have effect subject to the provisions of that Schedule.
(4) In Schedule 4 as it applies by virtue of subsection (3) 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.
(5) Any order under section 69 of this Act may make modifications in Schedule 4 for the purposes of its application to a transfer effected by that order.
71 Exemption for councils running small bus undertakings.
(1) Where in the case of any council operating a bus undertaking the number of vehicles owned by the council and used or appropriated for use in providing any service for the carriage of passengers by road which requires a PSV operator’s licence does not exceed such number as may be specified by order made by the Secretary of State, the Secretary of State may on the application of that council grant to that council an exemption from section 66(1) of this Act for such period and on such terms and conditions as he thinks fit.
(2) Any such exemption shall cease to have effect if any term or condition applicable to it is contravened.
(3) Where a council operating a bus undertaking is in possession of a vehicle under an agreement for hire, hire-purchase, conditional sale or loan, that vehicle shall be treated for the purposes of subsection (1) above as owned by the council.
72 The public transport companies and their controlling authorities.
(1) References in this Part of this Act to a public transport company are references to any of the following—
(a) any company which was formed under section 59 of this Act by the Passenger Transport Executive for any integrated transport area or passenger transport area and is for the time being a subsidiary of that Executive or of the Integrated Transport Authority or Passenger Transport Authority for that area;
(b) any company which was formed under section 61 of this Act by the Integrated Transport Authority for any integrated transport area or by the Passenger Transport Authority for any passenger transport area and is for the time being a subsidiary of that Authority; and
(c) any company which was formed by one or more councils under section 67 of this Act and is for the time being under local authority control.
(2) A company formed under section 67 of this Act shall be treated for the purposes of subsection (1)(c) above as under local authority control at any time when either—
(a) it is a subsidiary of a single district council in England and Wales or, in Scotland, of a single council (other than the council for Orkney Islands, Shetland Islands or Western Isles) or
(b) if two or more such councils who are members of the company were a single body corporate, it would be a subsidiary of that body corporate.
(3) References in this Part of this Act to a public transport company’s controlling authority—
(a) in relation to a company within subsection (1)(a) or (b) above, are references to the Passenger Transport Executive or (as the case may be) the Integrated Transport Authority or the Passenger Transport Authority of whom it is a subsidiary; and
(b) in relation to a company within subsection (1)(c) above, are references to the council or councils referred to in subsection (2) above.
(4) References in this Part of this Act to a composite authority are references to a controlling authority consisting of two or more such councils as are referred to in subsection (2) above, and the councils concerned are referred to as the component councils of that authority.
(5) For the purposes of this Part of this Act a public transport company is an associated company—
(a) in relation to an Integrated Transport Authority or a Passenger Transport Authority if that Authority or the Passenger Transport Executive for that Authority’s area are its controlling authority;
(b) in relation to a Passenger Transport Executive if that Executive or the Integrated Transport Authority or Passenger Transport Authority for that Executive’s area are its controlling authority; and
(c) in relation to a district council in England and Wales or, in Scotland, a council (other than the council for Orkney Islands, Shetland Islands or Western Isles) if that council are its controlling authority or one of the component councils of a composite authority who are its controlling authority.
73 Control over constitution and activities of public transport companies.
(1) 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 directors of the company include no more than the permitted maximum number of persons who are not full-time employees of the company.
(2) Following the transfer to a public transport company of its initial undertaking, it shall be the duty of that company’s controlling authority to exercise their control over that company so as to ensure that the directors of the company include not less than the required minimum number of persons who are full-time employees of the company holding positions of responsibility for the management of the company’s business or any part of it.
The reference above in this subsection to the transfer to a public transport company of its initial undertaking is a reference, in relation to any such company, to the transfer or (if more than one) the first transfer of property, rights and liabilities to that company under section 59(7), 61(11), 68(7) or 70(2) of this Act.
(3) Subject to subsection (5) below, it shall be the duty of any public transport company’s controlling authority to exercise their control over the company so as to ensure that the company—
(a) does not engage in activities in which the controlling authority have no power to engage or permit any body corporate which is its subsidiary to engage in any such activities;
(b) does not—
(i) borrow money from any person other than the controlling authority; or
(ii) permit any body corporate which is its subsidiary to borrow money from any person other than the company, any other subsidiary of the company, or the controlling authority;
with the exception in each case of borrowing by way of temporary loan or overdraft; and
(c) does not—
(i) raise money by the issue of shares or stock to any person other than the controlling authority; or
(ii) permit any body corporate which is its subsidiary to raise money by the issue of shares or stock to any person other than the company.
(4) Where a public transport company’s controlling authority are a composite authority, the duties imposed by the preceding provisions of this section are joint duties of both or all of the component councils of that authority; and subsection (3) above shall apply in any such case as if—
(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.
74 Disabilities of directors of public transport companies.
(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.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(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.
75 Powers of investment and disposal in relation to public transport companies.
(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.
76 Audit of accounts of public transport companies.
(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.
77 Local authority financial controls in Scotland.
(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.
78 Provision of services for public transport companies.
(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.
79 Financial backing for establishment and operations of public transport companies.
(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).
80 Duty of Integrated Transport Authority or Passenger Transport Authority not to inhibit competition.
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.
81 Provision, maintenance and operation of bus stations.
(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.
82 Bus stations: restrictions on discriminatory practices, etc.
(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
(c) a person to whom subsection (3) above applies,
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
(c) a person to whom subsection (3) above applies,
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.
83 Provisions supplementary to sections 81 and 82.
(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.
(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
(c) any transfer of property, rights and liabilities under section 59, 61, 68 or 70 of this Act.
(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
(c) be framed so as to have effect from a date earlier than the making of the regulations;
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.
85 Incorporation of Passenger Transport Executives in Authorities for their area.
(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.
86 Amendments consequential on orders under section 85.
(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.
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;
(c) references to—
(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.
88 Expenditure on public passenger transport services.
(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; ...
(ba) combined authorities,
(bb) combined county authorities, and
(c) . . . councils in Scotland;
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.
89 Obligation to invite tenders for subsidised services.
(1) Subject to sections 90 and 91 of this Act, an authority responsible for expenditure on public passenger transport services may not enter into an agreement providing for service subsidies under which a local service is to be provided except by accepting a tender invited in pursuance of this section.
(2) Where any such authority propose to secure the provision of any local service by entering into any such agreement, the authority shall invite tenders for the provision of that service for such period and on such basis as may be specified in the invitation to tender.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Subject to subsection (5) below, any such invitation—
(a) must be issued generally, in such manner as the authority issuing the invitation consider appropriate for bringing it to the attention of persons who may be interested; and
(b) must also be issued individually to all persons who have given to that authority a written notice indicating that they wish to receive invitations to tender for the provision of local services for that authority’s area or (as the case may be) for the provision of such services of any description to which the invitation relates.
(5) Any such notice shall specify the address to which any such invitation is to be directed, and it shall be sufficient for the purposes of subsection (4)(b) above if the authority send the invitation to the person giving any such notice at the address so specified.
(6) An authority issuing an invitation to tender under this section shall not accept any tender submitted by a person who is not the holder of either—
(a) a PSV operator’s licence, not being—
(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(ii) a licence to which any condition is attached under section 26 of this Act prohibiting the holder from using vehicles under the licence to provide local services of all descriptions or (as the case may be) of any description to which the invitation relates; or
(b) a permit under section 22 of this Act.
(7) An authority issuing an invitation to tender under this section shall, in determining whether to accept a tender submitted in response to the invitation or which (if any) of several such tenders to accept, have regard in particular to—
(a) a combination of economy, efficiency and effectiveness;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) the reduction or limitation of traffic congestion, noise or air pollution.
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) The period specified in any invitation to tender issued under section 89 of this Act as the period for which a service to which the invitation relates is to be provided shall not exceed 8 years beginning with the date on which any agreement entered into by accepting a tender submitted in response to the invitation is concluded.
(2) Such information as may be prescribed with respect to any tenders submitted in response to any such invitation to tender shall be published by the authority issuing the invitation in such manner as may be prescribed.
(3) On entering into an agreement by accepting any such tender that authority shall publish in such manner as may be prescribed their reasons for considering that the payment of service subsidies to secure the service in question in accordance with the terms of that tender accords with section 89(7) of this Act.
(4) Regulations may provide for treating a specification of terms of service, in such form as may be prescribed—
(a) prepared, with reference to any invitation to tender issued under section 89 of this Act by any authority responsible for expenditure on public passenger transport services, by the authority issuing the invitation with respect to the provision of that service by a company to be formed in pursuance of any requirement under Part IV of this Act to carry on any business which includes any current activities of that authority; and
(b) ratified by that company after its formation within such period and in such manner as may be prescribed;
as if it were a tender submitted in response to that invitation by that company within any period allowed for the submission of tenders in accordance with that invitation.
(5) The reference in subsection (4)(a) above to any current activities of an authority responsible for expenditure on public passenger transport services is a reference to any activities which at the time when the specification of terms of service is prepared are currently carried on by or on behalf of that authority, or by any body of which that authority is a member or to which it appoints any members.
(1) Regulations may provide for excluding from section 89(1) of this Act agreements of any description specified in the regulations; and any such description may be framed by reference to—
(a) the description of service to which the agreement relates;
(b) the description of persons proposing to operate the service;
(c) the period for which the service is to be provided under the agreement;
(d) the aggregate amount of the service subsidies provided for under the agreement; or
(e) any other relevant circumstances.
(2) Section 89(1) of this Act shall not apply in any case where it appears to an authority responsible for expenditure on public passenger transport services that action is urgently required for the purpose of—
(a) maintaining an existing service;
(b) securing the provision of a service in place of a service which has ceased to operate; or
(c) securing the provision of a service to meet any public transport requirement which has arisen unexpectedly and ought in the opinion of the authority to be met without delay;
and that it is necessary for that purpose to enter into an agreement providing for service subsidies in order to secure that service.
(3) Where by virtue of subsection (2) above any such authority enter into an agreement to which section 89(1) of this Act does not apply, the authority shall as soon as possible invite tenders for the provision of the service which is the subject of that agreement for such period and on such basis as may be specified in the invitation to tender; and sections 89(3) to (8) and 90 of this Act shall apply in any such case as if the invitation had been issued under section 89(2).
(4) Any agreement entered into by virtue of subsection (2) above shall be made so as to remain in force no later than the end of the period of three months beginning with the day immediately following the end of the period allowed for the submission of tenders in accordance with the invitation to tender issued under section (3) above.
(5) Subject to the following provisions of this section, where—
(a) an invitation to tender for the provision of any service is issued under section 89(2) of this Act or subsection (3) above; and
(b) no tender, or no tender which the authority issuing the invitation consider acceptable, is submitted in response to that invitation;
any power of that authority to enter into an agreement providing for service subsidies in order to secure that service shall cease to be subject to section 89(1) of this Act.
(6) Any agreement which by virtue of subsection (5) above is entered into by an authority responsible for expenditure on public passenger transport services otherwise than by acceptance of a tender invited in pursuance of section 89 or subsection (3) above shall be made so as to remain in force no later than the end of the period specified in pursuance of section 90(1) of this Act in the invitation to tender mentioned in subsection (5)(a) above.
(7) On entering into any such agreement an authority shall publish in such manner as may be prescribed either—
(a) a statement that no tender was submitted in response to that invitation to tender; or
(b) a statement of their reasons for considering that no tender so submitted was acceptable;
as the case may require.
92 General provisions with respect to the exercise of service subsidy functions.
(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
(c) may make provision for exceptions from section 89(4) of this Act in such cases as may be prescribed.
(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.
(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
(c) between places outside but in the vicinity of that area;
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.
(8A) A county council or a council of a non-metropolitan district is not a local authority for the purposes of this section where—
(a) the council is a constituent council of a combined authority or a combined county authority (and here “constituent council” has the meaning given by section 104(11) of the Local Democracy, Economic Development and Construction Act 2009 in relation to a combined authority and section 10(11) of the Levelling-Up and Regeneration Act 2023 in relation to a combined county authority), and
(b) the combined authority or combined county authority has completed its first full financial year.
(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.
(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;
(c) the manner of making any payments due to operators by way of such reimbursement;
(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
(c) any modifications applied in the case of any individual operator by a direction given under section 98 of this Act;
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.
95 Publicity requirements for schemes and reimbursement arrangements.
(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.
96 Right of eligible service operators to participate in travel concession schemes.
(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.
97 Compulsory participation in travel concession schemes.
(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.
98 Further provisions with respect to participation notices.
(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.