Office of Public Sector Information

[F3“(6A)The National Assembly for Wales may confer exemptions from subsection (3) or (3A) above either generally or in the case of any class or description of members except that no such exemption may be granted in the case of a member of a council’s executive acting alone; and—

(a)subsection (5)(a) and (b) above shall apply in relation to any such exemption as they apply in relation to any dispensation that may be granted under subsection (4) above; and

(b)any such exemption may be withdrawn or varied at any time by the National Assembly for Wales]

(7)If any person fails to comply with subsection (3) [F4or (3A)] above he shall for each offence be liable on summary conviction to a fine not exceeding level 4 on the standard scale, unless he proves that he did not know that a contract or proposed contract with, or any other matter relating to the activities of, the company concerned was the subject of consideration at the meeting in question.

(8)A prosecution for an offence under this section shall not, in England and Wales, be instituted except by or on behalf of the Director of Public Prosecutions.

(9)A council who are a public transport company’s controlling authority or one of the component councils of such an authority, and any Passenger Transport Authority for a passenger transport area in England and Wales who are a public transport company’s controlling authority, may by standing orders provide for the exclusion of a member of that council or authority who is a director of that company from a meeting of that council or Authority while any contract or proposed contract with, or any other matter relating to the activities of, the public transport company or a subsidiary of that company is under consideration.

(10)Subsections (3) and (9) above shall apply as respects members of—

(a)a committee of any such council or Passenger Transport Authority as is mentioned in subsection (9) above; or

(b)a joint committee of two or more local authorities one or more of whom is such a council or Passenger Transport Authority;(including in either case a sub-committee), as they apply in respect of members of that council or Authority, but with the substitution of references to meetings of any such committee for references to meetings of that council or Authority.

(11)In subsection (10)(b) above, “local authority”—

(a)as respects England and Wales, has the same meaning as in the 1972 Act, except that it includes also a metropolitan county passenger transport authority; and

(b)as respects Scotland, has the same meaning as in the M1Local Government (Scotland) Act 1973.

(12)For the purposes of section 94 of the 1972 Act or section 38 of the Local Government (Scotland) Act 1973 (disability of members of authorities for voting on account of interest in contracts, etc.) a member of any such council or Passenger Transport Authority as is mentioned in subsection (9) above who is a director of the public transport company in question shall not be treated as having a pecuniary interest in any contract or proposed contract with, or in any other matter relating to the activities of, the public transport company or a subsidiary of that company by reason only of any interest of his in that company or in a subsidiary of that company.

(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.

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 a Passenger Transport Authority for a passenger 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 Passenger Transport Authority.

(3)Subject to the following provisions of this section, if a director of a public transport company is a member of any such council as is mentioned in subsection (1)(a) or (b) above or of any such Passenger Transport Authority as is mentioned in subsection (2) above he shall not at any meeting of that council or Authority—

(a)take part in the consideration or discussion of any contract or proposed contract with, or any other matter relating to the activities of, the public transport company or a subsidiary of that company; or

(b)vote on any question with respect to any such contract, proposed contract or other matter.

(4)The Secretary of State may grant a written dispensation from subsection (3) above in the case of any individual member.

(5)Any such dispensation—

(a)may extend both to the consideration or discussion of any such contract, proposed contract or other matter and to voting with respect to it, or to either alone;

(b)may relate to contracts, proposed contracts or other matters of all descriptions or of any particular description specified in the dispensation; and

(c)may be withdrawn or varied at any time by a notice in writing given by the Secretary of State to the member in question.

(6)The Secretary of State may confer exemptions from subsection (3) above either generally or in the case of any class or description of members; and—

(a)subsection (5)(a) and (b) above shall apply in relation to any such exemption as they apply in relation to any dispensation that may be granted under subsection (4) above; and

(b)any such exemption may be withdrawn or varied at any time by the Secretary of State.

(7)If any person fails to comply with subsection (3) above he shall for each offence be liable on summary conviction to a fine not exceeding level 4 on the standard scale, unless he proves that he did not know that a contract or proposed contract with, or any other matter relating to the activities of, the company concerned was the subject of consideration at the meeting in question.

(8)A prosecution for an offence under this section shall not, in England and Wales, be instituted except by or on behalf of the Director of Public Prosecutions.

(9)A council who are a public transport company’s controlling authority or one of the component councils of such an authority, and any Passenger Transport Authority for a passenger transport area in England and Wales who are a public transport company’s controlling authority, may by standing orders provide for the exclusion of a member of that council or authority who is a director of that company from a meeting of that council or Authority while any contract or proposed contract with, or any other matter relating to the activities of, the public transport company or a subsidiary of that company is under consideration.

(10)Subsections (3) and (9) above shall apply as respects members of—

(a)a committee of any such council or Passenger Transport Authority as is mentioned in subsection (9) above; or

(b)a joint committee of two or more local authorities one or more of whom is such a council or Passenger Transport Authority;(including in either case a sub-committee), as they apply in respect of members of that council or Authority, but with the substitution of references to meetings of any such committee for references to meetings of that council or Authority.

(11)In subsection (10)(b) above, “local authority”—

(a)as respects England and Wales, has the same meaning as in the 1972 Act, except that it includes also a metropolitan county passenger transport authority; and

(b)as respects Scotland, has the same meaning as in the M1Local Government (Scotland) Act 1973.

(12)For the purposes of section 94 of the 1972 Act or section 38 of the Local Government (Scotland) Act 1973 (disability of members of authorities for voting on account of interest in contracts, etc.) a member of any such council or Passenger Transport Authority as is mentioned in subsection (9) above who is a director of the public transport company in question shall not be treated as having a pecuniary interest in any contract or proposed contract with, or in any other matter relating to the activities of, the public transport company or a subsidiary of that company by reason only of any interest of his in that company or in a subsidiary of that company.

(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, a Passenger Transport Authority [F1, 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)A Passenger Transport Authority [F1, 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

(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 company appoints only auditors who, in addition to being [F1eligible for such appointment in accordance with Part II of the Companies Act 1989], are approved for appointment as auditors of that company by the Audit Commission for Local Authorities in England and Wales.

(2)Where a public transport company’s controlling authority are a composite authority, the duty imposed by subsection (1) 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 M1Local 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 [F1eligible for such appointment in accordance with Part II of the Companies Act 1989], 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, [F1council (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)A Passenger Transport Authority and a district council or, in Scotland, a [F1council (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 connecdtion 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)A Passenger Transport Authority and a district council or, in Scotland, a [F1council (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)A Passenger Transport Authority and a district council or, in Scotland, a [F1council (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, a Passenger Transport Authority and a district council or, in Scotland, a [F1council (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)A Passenger Transport Authority and a district council or, in Scotland, a [F1council (other than the council for Orkney Islands, Shetland Islands or Western Isles)] shall each have power, where on the winding up of any associated company the assets of the company are not sufficient to meet the company’s liabilities, to make to the creditors of the company such payments as may be necessary to meet the balance of those liabilities (and may accordingly give to persons dealing or proposing to deal with any such company such guarantees with respect to the exercise of their power under this subsection in relation to that company as they think fit).

Miscellaneous and supplementary

80 Duty of Passenger Transport Authority not to inhibit competition

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 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.

[F1(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 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.

[F2(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 [F3(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).

(7)On any application under subsection (6) above the 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 M1Road 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.

[F1(4A)Nothing done pursuant to 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.]

[F2(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 M2Transport 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.