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Part I General Provisions Relating to Road Passenger Transport

Abolition of road service licensing

1 Abolition of road service licensing

(1) The provisions of Part III of the 1981 Act (road service licences) shall cease to have effect.

(2) Those provisions are replaced—

(a) in relation to London local services, by Part II of this Act; and

(b) in relation to other local services, by sections 6 to 9 of this Act.

(3) Schedule 1 to this Act shall have effect for the purpose of making amendments in other enactments consequential on this section.

Meaning of “local service”

2 Local services

(1) In this Act “local service” means a service, using one or more public service vehicles, for the carriage of passengers by road at separate fares other than one—

(a) which is excluded by subsection (4) below; or

(b) in relation to which (except in an emergency) one or both of the conditions mentioned in subsection (2) below are met with respect to every passenger using the service.

(2) The conditions are that—

(a) the place where he is set down is fifteen miles or more, measured in a straight line, from the place where he was taken up;

(b) some point on the route between those places is fifteen miles or more, measured in a straight line, from either of those places.

(3) Where a service consists of one or more parts with respect to which one or both of the conditions are met, and one or more parts with respect to which neither of them is met, each of those parts shall be treated as a separate service for the purposes of subsection (1) above.

(4) A service shall not be regarded for the purposes of this Act as a local service if—

(a) the conditions set out in Part III of Schedule 1 to the 1981 Act (trips organised privately by persons acting independently of vehicle operators, etc.) are met in respect of each journey made by the vehicles used in providing the service; or

(b) every vehicle used in providing the service is so used under a permit granted under section 19 of this Act.

(5) Subsections (5)(b), (c) and (6) of section 1 of the 1981 Act (meaning of “fares”) shall apply for the purposes of this section.

Traffic commissioners

3 Traffic commissioners

(1) There shall cease to be a body of traffic commissioners for each traffic area constituted for the purposes of the 1981 Act (and the appointment of any person who, immediately before the day on which this section comes into force, was a traffic commissioner or deputy to a traffic commissioner shall accordingly come to an end on that day).

(2) For sections 4 and 5 of the 1981 Act (traffic commissioners) there shall be substituted the following sections—

“4 Traffic commissioners

(1) There shall be a commissioner for each traffic area constituted for the purposes of this Act.

(2) The commissioner for each traffic area shall be appointed by the Secretary of State and shall be known as the traffic commissioner for the area.

(3) The traffic commissioner for a traffic area shall be responsible for issuing licences under this Act and shall have such other functions as are given to him by, or in pursuance of, this Act or any other enactment.

(4) Any person appointed to be the traffic commissioner for a traffic area shall—

(a) act under the general directions of the Secretary of State; and

(b) vacate his office on attaining the age of sixty-five, or on such later date before he attains the age of sixty-six as the Secretary of State may at any time direct, but otherwise hold office during Her Majesty’s pleasure.

(5) Where the Secretary of State proposes to appoint a person to be the traffic commissioner for a traffic area he shall, before making the appointment, require that person to declare if he has any, and if so what, financial interest in any transport undertaking which carries passengers or goods by road within Great Britain.

(6) Schedule 2 to this Act shall have effect with respect to traffic commissioners.

5 Publication of information by traffic commissioners

(1) Every traffic commissioner shall publish, in such form and at such times as may be prescribed, such information with respect to the exercise, or proposed exercise, of any of his functions under this Act or the Transport Act 1985 as may be prescribed.

(2) Where the traffic commissioner for a traffic area publishes information under this section he shall—

(a) send a copy of the publication—

(i) to every chief officer of police, Passenger Transport Executive and local authority whose area falls partly or wholly within that traffic area; and

(ii) where that traffic area falls wholly or partly within London, to London Regional Transport; and

(b) make a copy of it available (by post if required and on payment of such fee as may be prescribed) to anyone who asks for one.

(3) In this section “local authority” means—

(a) in England and Wales, the council of any non-metropolitan county, any district or London borough or the Common Council of the City of London; and

(b) in Scotland, any regional or islands council.”

(3) For Schedule 2 to the 1981 Act (traffic commissioners) there shall be substituted the Schedule set out in Part I of Schedule 2 to this Act.

(4) For subsection (1) of section 59 of the 1968 Act (licensing authority for Part V of that Act) there shall be substituted—

“(1) The traffic commissioner for any traffic area constituted for the purposes of the Public Passenger Vehicles Act 1981 shall exercise the functions conferred on him by this Part of this Act and is in this Part of this Act referred to as “the licensing authority.” ”

(5) Part II of Schedule 2 to this Act shall have effect for the purpose of making further consequential amendments in other enactments.

4 Inquiries held by traffic commissioners

For section 54 of the 1981 Act (procedure of traffic commissioners) there shall be substituted the following section—

“54 Inquiries held by traffic commissioners

(1) A traffic commissioner may, at such places as appear to him to be convenient, hold such inquiries as he thinks fit in connection with the exercise of his functions.

(2) Where, as respects the proposed exercise of his powers on any occasion, a traffic commissioner receives a request for an inquiry from two or more persons he may hold a single inquiry in response to those requests.

(3) Subject to any provision made by regulations, any inquiry held under this section shall be public.

(4) Where a traffic commissioner proposes to hold an inquiry for the purpose of considering any application or proposal, he shall publish notice of the inquiry in the prescribed manner.

(5) Where a traffic commissioner holds an inquiry he may, in such circumstances as may be prescribed and subject to any provision made under subsection (6) below, make such order as he thinks fit as to the payment, by such party to the inquiry as he thinks fit, of costs incurred by him or by the Secretary of State in connection with the holding of the inquiry.

(6) Regulations may make provision, in relation to orders under subsection (5) above, as to—

(a) the method of calculating the amount of any costs incurred as mentioned in that subsection; and

(b) the maximum amount which may be ordered to be paid under such an order.

(7) Any amount so ordered to be paid by any person may be recoverable from him—

(a) in England and Wales, as a debt due to the Crown; or

(b) in Scotland, by the Secretary of State.

(8) Information with respect to any particular trade or business which is given at any such inquiry while admission to the inquiry is restricted in accordance with regulations shall not be disclosed, so long as that trade or business continues to be carried on, except—

(a) with the consent of the person for the time being carrying it on;

(b) for the purpose of the discharge by any person of his functions under any enactment mentioned in subsection (9) below; or

(c) with a view to the institution of, or otherwise for the purposes of, any legal proceedings pursuant to or arising out of any such enactment (including proceedings before the Transport Tribunal);

and any person who discloses any information in contravention of this subsection shall be liable on summary conviction to a fine not exceeding level 4 on the standard scale.

(9) The enactments referred to in subsection (8)(b) and (c) above are—

(a) sections 12 to 21 of this Act; and

(b) sections 24 to 28 of the Transport Act 1985.

(10) The Secretary of State may by order made by statutory instrument amend subsection (9) above by adding a reference to an enactment or by removing any such reference; and any statutory instrument made in exercise of the power conferred by this subsection shall be subject to annulment in pursuance of a resolution of either House of Parliament.”

5 Assistance for traffic commissioners in considering financial questions

After section 17 of the 1981 Act, there shall be inserted the following section—

“17A Assessors to assist traffic commissioners

(1) In considering any financial question which appears to him to arise in relation to the exercise of his functions under section 14, 16 or 17 of this Act, a traffic commissioner may be assisted by an assessor drawn from a panel of persons appointed by the Secretary of State for the purposes of this section.

(2) A traffic commissioner shall pay to any such assessor, in respect of his services, such remuneration as may be determined by the Secretary of State with the consent of the Treasury.”

Registration of local services

6 Registration of local services

(1) In this section “service” means a local service which is neither a London local service [F2nor a service which falls within subsection (1A) below] nor a service provided under an agreement [F1entered into, where a railway service has been temporarily interrupted, with the Secretary of State, the Scottish Ministers or the National Assembly for Wales under section 40 of the Railways Act 2005 (substitution services provided for interrupted or discontinued railway services)] .

[F3(1A) A service falls within this subsection if conditions A and B are satisfied in relation to it.

(1B) Condition A is satisfied if the service is provided in pursuance of—

(a) the obligation placed on a local education authority by section 508B(1), section 508F(1), section 509(1) or (1A), or section 509AA(7)(b) or (9)(a) of the Education Act 1996 (provision of transport etc);

(b) the exercise of the power of a local education authority under section 508C(1) of that Act; or

(c) arrangements made by a local education authority in pursuance of a scheme made by them under Schedule 35C to that Act (school travel schemes).

(1C) Condition B is satisfied if the service is for the carriage of any of the following persons (and no other)—

(a) a person receiving education or training at premises to or from which transport is provided in pursuance of the obligation, the exercise of the power or the arrangements, as the case may be, mentioned in paragraph (a), (b) or (c) of subsection (1B);

(b) a person supervising or escorting any such person while he is using such transport;

(c) a person involved with the provision of education or training at any such premises.]

(2) Subject to regulations under this section, no service shall be provided in any traffic area in which there is a stopping place for the service unless—

(a) the prescribed particulars of the service have been registered with the traffic commissioner for that area by the operator of the service;

(b) the period of notice in relation to the registration has expired; and

(c) the service is operated in accordance with the registered particulars.

(3) In subsection (2) above “the period of notice”, in relation to any registration, means, subject to regulations under this section—

(a) the period prescribed for the purposes of this subsection; or

(b) if longer, the period beginning with the registration and ending with the date given to the traffic commissioner by the operator as the date on which the service will begin.

(4) An application for registration shall only be accepted from a person who either holds an unconditional PSV operator’s licence or a permit under section 22 of this Act or is using, or proposing to use, a school bus belonging to that person for farepaying passengers in accordance with section 46(1) of the 1981 Act.

(5) In subsection (4) above “unconditional”, in relation to a PSV operator’s licence, means a licence which does not have attached to it a condition imposed under section 26(1) of this Act prohibiting, or having the effect of prohibiting, the operator from using vehicles under the licence to provide the service to which the application in question relates.

(6) In this Act any reference to a service registered under this section is a reference to a service in respect of which the prescribed particulars are registered under this section.

(7) Any registration may be varied or cancelled on an application made by the operator of the service to which it relates.

(8) Subject to regulations under this section, the variation or cancellation of a registration shall become effective—

(a) on the expiry of the period beginning with the date on which the traffic commissioner accepts the application and ending with the date determined in accordance with regulations under this section; or

(b) if later, on the day given to the traffic commissioner by the operator as the effective date for the variation or (as the case may be) cancellation.

(9) Regulations may be made for the purpose of carrying this section into effect and any such regulations may, in particular, make provision—

(a) for permitting the variation of a registered service, in such circumstances as may be prescribed, without variation of the registration;

(b) for excluding or modifying the application of subsection (3) or (8) above in such cases or classes of case as may be prescribed;

(c) that in such cases or classes of case as may be prescribed—

(i) subsection (2) above shall have effect as if for the reference in paragraph (b) to the period of notice there were substituted a reference to such period as the traffic commissioner may determine;

(ii) subsection (8) above shall have effect as if for the reference in paragraph (a) to the date on which the period mentioned in that paragraph is to expire there were substituted a reference to such date as he may determine;

(d) as to the procedure for applying for registration or for the variation or cancellation of a registration;

(e) for an application for registration or for the variation or cancellation of a registration not to be accepted by the traffic commissioner to whom it is made unless the applicant gives to the commissioner such information as he may reasonably require in connection with the application;

(f) as to the traffic commissioner to whom an application for registration is to be made in the case of services which will run through the areas of two or more traffic commissioners;

(g) as to the documents (if any) to be issued by a traffic commissioner with respect to registrations;

(h) as to the cancellation of registrations relating to discontinued services;

(i) for enabling a traffic commissioner to require the operator of a registered service, in such circumstances as may be prescribed, to keep records of such matters relating to the operation of the service, in such manner, as may be prescribed;

(j) for requiring the operator of a registered service who is required to keep records by regulations made by virtue of paragraph (i) above to make those records available to the traffic commissioner;

(k) for requiring the operator or prospective operator of a registered service to give, to such persons and at such times as may be prescribed, such information as may be prescribed with respect to the service, or proposed service, or any proposal to vary or cancel the registration of the service;

(l) for excluding from the application of this section services which are—

(i) excursions or tours; or

(ii) excursions or tours falling within a prescribed class.

6 Registration of local services

(1) In this section “service” means a local service which is neither a London local service nor a service provided under an agreement [F1entered into, where a railway service has been temporarily interrupted, with the Secretary of State, the Scottish Ministers or the National Assembly for Wales under section 40 of the Railways Act 2005 (substitution services provided for interrupted or discontinued railway services)].

(2) Subject to regulations under this section, no service shall be provided in any traffic area in which there is a stopping place for the service unless—

(a) the prescribed particulars of the service have been registered with the traffic commissioner for that area by the operator of the service;

(b) the period of notice in relation to the registration has expired; and

(c) the service is operated in accordance with the registered particulars.

(3) In [F2this section]“the period of notice”, in relation to any registration, means, subject to regulations under this section—

(a) the period prescribed for the purposes of this subsection; or

(b) if longer, the period beginning with the registration and ending with the date given to the traffic commissioner by the operator as the date on which the service will begin.

(4) An application for registration shall only be accepted from a person who either holds an unconditional PSV operator’s licence or a permit under section 22 of this Act or is using, or proposing to use, a school bus belonging to that person for farepaying passengers in accordance with section 46(1) of the 1981 Act.

(5) In subsection (4) above “unconditional”, in relation to a PSV operator’s licence, means a licence which does not have attached to it a condition imposed under section 26(1) of this Act prohibiting, or having the effect of prohibiting, the operator from using vehicles under the licence to provide the service to which the application in question relates.

(6) In this Act any reference to a service registered under this section is a reference to a service in respect of which the prescribed particulars are registered under this section.

(7) Any registration may be varied or cancelled on an application made by the operator of the service to which it relates.

(8) Subject to regulations under this section, the variation or cancellation of a registration shall become effective—

(a) on the expiry of the period beginning with the date on which the traffic commissioner accepts the application and ending with the date determined in accordance with regulations under this section; or

(b) if later, on the day given to the traffic commissioner by the operator as the effective date for the variation or (as the case may be) cancellation.

[F3(8A) Where a service is registered under this section or, as the case may be, a registration is varied under this section, the operator of the service which has been registered, or in respect of which the registration has been varied, shall provide that service for a period of at least 90 days (or, as the case may be, such other period as the traffic commissioner may specify) beginning with the day on which the period of notice expires or, as the case may be, the variation becomes effective.]

(9) Regulations may be made for the purpose of carrying this section into effect and any such regulations may, in particular, make provision—

(a) for permitting the variation of a registered service, in such circumstances as may be prescribed, without variation of the registration;

(b) for excluding or modifying the application of subsection (3) or (8) above in such cases or classes of case as may be prescribed;

(c) that in such cases or classes of case as may be prescribed—

(i) subsection (2) above shall have effect as if for the reference in paragraph (b) to the period of notice there were substituted a reference to such period as the traffic commissioner may determine;

(ii) subsection (8) above shall have effect as if for the reference in paragraph (a) to the date on which the period mentioned in that paragraph is to expire there were substituted a reference to such date as he may determine;

(d) as to the procedure for [F4or in connection with]applying for registration or for the variation or cancellation of a registration;

[F5(da) subject to subsection (10) below, specifying dates as the only dates on which the operator of a local service in the area (or areas) of such local authority (or authorities) as may be specified in the regulations may vary a registration in so far as it relates to the scheduled times of the local service in respect of which the registration is made;]

(e) for an application for registration or for the variation or cancellation of a registration not to be accepted by the traffic commissioner to whom it is made unless the applicant gives to the commissioner [F6, in such form as he may require,] such information as he may reasonably require in connection with the application;

(f) as to the traffic commissioner to whom an application for registration is to be made in the case of services which will run through the areas of two or more traffic commissioners;

(g) as to the documents (if any) to be issued by a traffic commissioner with respect to registrations;

(h) as to the cancellation of registrations relating to discontinued services;

(i) for enabling a traffic commissioner to require the operator of a registered service, in such circumstances as may be prescribed, to keep records of such matters relating to the operation of the service, in such manner, as may be prescribed;

(j) for requiring the operator of a registered service who is required to keep records by regulations made by virtue of paragraph (i) above to make those records available to the traffic commissioner;

(k) for requiring the operator or prospective operator of a registered service to give, to such persons and at such times as may be prescribed, such information as may be prescribed with respect to the service, or proposed service, or any proposal to vary or cancel the registration of the service;

(l) for excluding from the application of this section services which are—

(i) excursions or tours; or

(ii) excursions or tours falling within a prescribed class.

[F7(10) Regulations making provision such as is mentioned in subsection (9)(da) above may not—

(a) have effect for a period of more than three years;

(b) specify more than four dates in a calendar year as dates on which a registration may be varied.]

7 Application of traffic regulation conditions to local services subject to registration under section 6

(1) If a traffic authority asks him to exercise his powers under this section in relation to a particular traffic problem, the traffic commissioner for any traffic area may determine conditions (“traffic regulation conditions”) which must be met in the provision of services in the area to which the conditions are expressed to apply.

(2) In this section “service” means any local service to which section 6 of this Act applies.

(3) The area to which traffic regulation conditions may be expressed to apply is any part of the traffic area of the traffic commissioner determining them.

(4) No traffic commissioner shall determine traffic regulation conditions unless he is satisfied, after considering the traffic in the area in question, that such conditions are required in order to—

(a) prevent danger to road users; F1. . .

(b) reduce severe traffic congestion [F2; or

(c) reduce or limit noise or air pollution.]

(5) In considering what traffic regulation conditions to apply to a particular area a traffic commissioner shall have regard in particular to the interests of—

(a) those who have registered under section 6 of this Act services which are or will be operated in the area;

(b) those who are, or are likely to be, users of such services; and

(c) persons who are elderly or disabled.

(6) The purposes for which traffic regulation conditions may be determined are the regulation of—

(a) the routes of services;

(b) the stopping places for services;

(c) when vehicles used in providing services may stop at such stopping places and for how long they may do so; and

(d) such other matters as may be prescribed.

(7) Subject to subsection (8) below, traffic regulation conditions shall apply—

(a) to all services operated in the area to which the conditions are expressed to apply; or

(b) to such class of service operated there as may be specified in the conditions.

(8) Where the traffic commissioner for any traffic area is satisfied that traffic regulation conditions applying generally to a particular part of his traffic area would be inappropriate as a means of achieving the regulation of traffic which he considers is required there, he may determine traffic regulation conditions which apply only to the service or services specified in the conditions.

(9) Before determining any traffic regulation conditions, a traffic commissioner shall hold an inquiry if he has received (within the prescribed period) a request for an inquiry from—

(a) the traffic authority which made the request under subsection (1) above;

(b) any other traffic authority likely to be affected by traffic regulation conditions determined in response to that request; or

(c) any person who has registered under section 6 of this Act a service which is or will be operated in the area in question;

and the request has not been withdrawn.

(10) Subsection (9) above shall not apply where the traffic commissioner is satisfied that the conditions should be determined without delay.

(11) Where, in reliance on subsection (10) above, a traffic commissioner determines traffic regulation conditions without first holding an inquiry, he shall hold one as soon as is reasonably practicable if any person mentioned in subsection (9)(a) or (c) above or any other traffic authority affected by the conditions has, before the end of the prescribed period, asked him to do so.

(12) Before asking a traffic commissioner to exercise his powers under this section in relation to a [F3a road for which the Secretary of State is the highway or roads authority], a traffic authority shall obtain leave of the Secretary of State; but leave given under this subsection shall not be taken to indicate the Secretary of State’s approval of any conditions determined by the traffic commissioner in response to the request.

(13) Traffic regulation conditions may make different provision with respect to the operation of any service to which they apply during different periods of the year, on different days of the week, or at different times during any period of 24 hours.

(14) A traffic commissioner may vary or revoke any traffic regulation conditions determined by him on being requested to do so by—

(a) any traffic authority; or

(b) the operator of any service affected by the conditions.

(15) In this section “traffic authority” means—

(a) in relation to England and Wales, the council of any metropolitan district or non-metropolitan county; and

(b) in relation to Scotland, the council of any [F4local government] area.

8 Enforcement of traffic regulation conditions, etc

(1) Where traffic regulation conditions have been determined under section 7 of this Act, it shall be the duty of the traffic commissioner by whom any relevant licence or permit has been granted to attach the conditions to that licence or, as the case may be, to that permit.

(2) In this section—

• “licence” means a PSV operator’s licence;

• “permit” means a permit under section 22 of this Act;

and a licence or permit is relevant for the purposes of this section if a local service registered under section 6 of this Act by the holder of the licence or permit is affected by the conditions.

(3) Where the traffic commissioner who determined the traffic regulation conditions and the traffic commissioner who granted the relevant licence or permit are different, it shall be the duty of the commissioner determining the conditions to send to the other commissioner—

(a) details of the conditions; and

(b) the name of the person registering the particulars of the local service.

(4) If traffic regulation conditions which have been attached to a licence or permit under this section are subsequently varied or revoked, it shall be the duty of the traffic commissioner or commissioners concerned to secure that the conditions as so attached are correspondingly varied or (as the case may be) removed.

(5) Traffic regulation conditions shall be of no effect to the extent to which they are incompatible with any provision made by or under any enactment prohibiting or restricting the use of any road by traffic.

(6) Where the operator of a local service is unable both to operate the service in accordance with the particulars of the service registered under section 6 of this Act and to comply with—

(a) traffic regulation conditions; or

(b) any other provision of a kind mentioned in subsection (5) above;

any failure to operate the service in accordance with those particulars which occurs at any time before the expiry of the prescribed period beginning with the coming into force of the conditions or provision shall be disregarded to the extent to which it is attributable to his having to comply with the conditions or provision.

9 Appeals against traffic regulation conditions

(1) Any person to whom subsection (2) below applies may appeal to the Secretary of State against—

(a) the determination, variation or revocation of any traffic regulation conditions under section 7 of this Act; or

(b) the refusal by a traffic commissioner to comply with a request duly made under that section to determine, vary or revoke any such conditions.

(2) The persons to whom this subsection applies are—

(a) in relation to any determination, variation or revocation of conditions—

(i) any person who has registered under section 6 of this Act a local service which is, or is likely to be, affected by them; and

(ii) any traffic authority aggrieved by the decision in question; and

(b) in relation to any refusal to comply with a request, the person making the request.

(3) An appeal under this section must be made within the prescribed time and in the prescribed manner, and provision may be made by regulations as to the procedure to be followed in connection with such appeals.

(4) On the determination of an appeal under this section, the Secretary of State may confirm, vary or reverse the decision appealed against and may give such directions as he thinks fit to the traffic commissioner for giving effect to his decision.

(5) An appeal lies at the instance of any of the persons mentioned in subsection (6) below on any point of law arising from a decision of the Secretary of State on an appeal under this section—

(a) to the High Court, where the area of the traffic commissioner concerned is in England or Wales; and

(b) to the Court of Session, where it is in Scotland.

(6) The persons who may appeal against any such decision of the Secretary of State are—

(a) the person who appealed to him;

(b) any person who had a right to appeal to him against the relevant decision of the traffic commissioner but did not exercise that right;

(c) any traffic authority aggrieved by the decision; and

(d) the traffic commissioner whose decision was appealed against.

(7) If on an appeal under subsection (5) above the High Court or Court of Session is of opinion that the decision appealed against was erroneous in point of law, it shall remit the matter to the Secretary of State with the opinion of the court for rehearing and determination by him.

(8) No appeal to the Court of Appeal may be brought from a decision of the High Court under this section except with the leave of the High Court or the Court of Appeal.

(9) An appeal shall lie, with the leave of the Court of Session or the House of Lords, from any decision of the Court of Session under this section; and such leave may be given on such terms as to costs, expenses or otherwise as the Court of Session or the House of Lords determine.

(10) In this section “traffic authority” has the same meaning as in section 7 of this Act.

Taxis and hire cars

10 Immediate hiring of taxis at separate fares

(1) In the circumstances mentioned in subsection (2) below, a licensed taxi may be hired for use for the carriage of passengers for hire or reward at separate fares without thereby—

(a) becoming a public service vehicle for the purposes of the 1981 Act or any related enactment; or

(b) ceasing (otherwise than by virtue of any provision made under section 13 of this Act) to be subject to the taxi code.

(2) The circumstances are that—

(a) the taxi is hired in an area where a scheme made under this section is in operation;

(b) the taxi is licensed by the licensing authority for that area; and

(c) the hiring falls within the terms of the scheme.

(3) In this section “licensing authority” means—

(a) in relation to the London taxi area, [F1Transport for London] or the holder for the time being of any office designated by [F1Transport for London] for the purposes of this section; and

(b) in relation to any other area in England and Wales, the authority having responsibility for licensing taxis in that area.

(4) For the purposes of this section, a licensing authority may make a scheme for their area and shall make such a scheme if the holders of at least ten per cent. of the current taxi licences issued by the authority request the authority in writing to do so.

(5) Any scheme made under this section shall—

(a) designate the places in the area from which taxis may be hired under the scheme (“authorised places”);

(b) specify the requirements to be met for the purposes of the scheme in relation to the hiring of taxis at separate fares; and

(c) F2. . .—

(i) include such provision, or provision of such description, as may be prescribed for the purposes of this sub-paragraph;

(ii) not include provision of any such description as may be prescribed for the purposes of this sub-paragraph.

(6) Subject to subsection (5) above, any scheme made under this section may, in particular, make provision with respect to—

(a) fares;

(b) the display of any document, plate, mark or sign for indicating an authorised place or that a taxi standing at an authorised place is available for the carriage of passengers at separate fares;

(c) the manner in which arrangements are to be made for the carriage of passengers on any such hiring as is mentioned in subsection (1) above; and

(d) the conditions to apply to the use of a taxi on any such hiring.

(7) A licensing authority may, subject to subsection (5) above, vary any scheme made by them under this section.

(8) F3. . . any scheme under this section, and any variation of such a scheme, shall be made in accordance with the prescribed procedure.

(9) For the purposes of this section—

(a) the hiring of a taxi falls within the terms of a scheme if—

(i) it is hired from an authorised place; and

(ii) the hiring meets the requirements specified by the licensing authority as those to be met for the purposes of the scheme; and

(b) a taxi is hired from an authorised place if it is standing at that place when it is hired and the persons hiring it are all present there.

F4(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11 Advance booking of taxis and hire cars at separate fares

(1) Where the conditions mentioned in subsection (2) below are met, a licensed taxi or licensed hire car may be used for the carriage of passengers for hire or reward at separate fares without thereby—

(a) becoming a public service vehicle for the purposes of the 1981 Act or any related enactment; or

(b) ceasing (otherwise than by virtue of any provision made under section 13 of this Act) to be subject to the taxi code or (as the case may be) the hire car code.

(2) The conditions are that—

(a) all the passengers carried on the occasion in question booked their journeys in advance; and

(b) each of them consented, when booking his journey, to sharing the use of the vehicle on that occasion with others on the basis that a separate fare would be payable by each passenger for his own journey on that occasion.

12 Use of taxis in providing local services

(1) Where the holder of a taxi licence—

(a) applies to the appropriate traffic commissioner for a restricted PSV operator’s licence to be granted to him under Part II of the 1981 Act; and

(b) states in his application that he proposes to use one or more licensed taxis to provide a local service;

section 14 of the 1981 Act (conditions to be met before grant of PSV operator’s licence) shall not apply and the commissioner shall grant the application.

(2) In this section “special licence” means a restricted PSV operator’s licence granted by virtue of this section.

F1(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Without prejudice to his powers to attach other conditions under section 16 of the 1981 Act, any traffic commissioner granting a special licence shall attach to it, under that section, the conditions mentioned in subsection (5) below.

(5) The conditions are—

(a) that every vehicle used under the licence shall be one for which the holder of the licence has a taxi licence; and

(b) that no vehicle shall be used under the licence otherwise than for the purpose of providing a local service with one or more stopping places within the area of the authority which granted the taxi licence of the vehicle in question.

(6) In subsection (5)(b) above “local service” does not include an excursion or tour.

(7) The maximum number of vehicles which the holder of a special licence may at any one time use under the licence shall be the number of vehicles for which (for the time being) he holds taxi licences; and a condition to that effect shall be attached to every special licence under section 16(1) of the 1981 Act.

(8) Section 1(2) of the 1981 Act (vehicle used as public service vehicle to be treated as such until that use is permanently discontinued) shall not apply to any use of a licensed taxi for the provision of a local service under a special licence.

(9) At any time when a licensed taxi is being so used it shall carry such documents, plates and marks, in such manner, as may be prescribed.

(10) Such provisions in the taxi code as may be prescribed shall apply in relation to a licensed taxi at any time when it is being so used; and any such provision may be so applied subject to such modifications as may be prescribed.

(11) For the purposes of section 12(3) of the 1981 Act (which provides that where two or more PSV operators’ licences are held they must be granted by traffic commissioners for different traffic areas), special licences shall be disregarded.

(12) A person may hold more than one special licence but shall not at the same time hold more than one such licence granted by the traffic commissioner for a particular traffic area.

(13) The following provisions shall not apply in relation to special licences or (as the case may be) the use of vehicles under such licences—

(a) sections 16(1A) and (2), 17(3)(d), 18 to 20 . . . F2 and 26 of the 1981 Act; and

(b) section 26(5) and (6) of this Act;

and for the purposes of section 12 of that Act this section shall be treated as if it were in Part II of that Act.

13 Provisions supplementary to sections 10 to 12

(1) The Secretary of State may by order make such modifications of the taxi code and the hire car code as he sees fit for the purpose of supplementing the provisions of sections 10 to 12 of this Act.

(2) Any order made under subsection (1) above may, in particular, modify any provision—

(a) relating to fares payable by the hirer of a vehicle;

(b) requiring the driver of any vehicle to accept any hiring, or to drive at the direction of a hirer, or (as the case may be) of a prospective hirer, to any place within or not exceeding any specified distance or for any period of time not exceeding a specified period from the time of hiring;

(c) making the carriage of additional passengers in any vehicle which is currently subject to a hiring dependent on the consent of the hirer.

(3) In this section, and in sections 10 to 12 of this Act—

• “licenced taxi” means—

(a) in England and Wales, a vehicle licensed under—

(i) section 37 of the M1Town Police Clauses Act 1847; or

(ii) section 6 of the M2Metropolitan Public Carriage Act 1869;

or under any similar enactment; and

(b) in Scotland, a taxi licensed under section 10 of the M3Civic Government (Scotland) Act 1982;

• “London taxi area” means the area to which the Metropolitan Public Carriage Act 1869 applies;

• “licensed hire car” means a vehicle which is licensed under section 48 of the M4Local Government (Miscellaneous Provisions) Act 1976; [F1or section 7 of the Private Hire Vehicles (London Act) 1998]

• “hire car code”, in relation to a licensed hire car used as mentioned in section 11 of this Act, means those provisions made by or under any enactment which would apply if it were hired by a single passenger for his exclusive use;

• “related enactment”, in relation to the 1981 Act, means any statutory provision (whenever passed or made) relating to public service vehicles in which “public service vehicle” is defined directly or indirectly by reference to the provisions of the 1981 Act;

• “taxi code”, in relation to any licensed taxi used as mentioned in section 10, 11 or 12 of this Act, means—

(a) in England and Wales, those provisions made by or under any enactment which would apply if the vehicle were plying for hire and were hired by a single passenger for his exclusive use; and

(b) in Scotland, the provisions of sections 10 to 23 of the M5Civic Government (Scotland) Act 1982, and Part I of that Act as it applies to these provisions; and

• “taxi licence” means a licence under section 6 of the M6Metropolitan Public Carriage Act 1869, section 37 of the M7Town Police Clauses Act 1847 or any similar enactment, or a taxi licence under section 10 of the Civic Government (Scotland) Act 1982.

(4) Any order made under subsection (1) above may contain such supplementary, incidental, consequential and transitional provisions (including provisions modifying any enactment contained in any Act other than this Act) as appear to the Secretary of State to be necessary or expedient in consequence of any modification of the taxi code or the private hire car code made by the order.

14 Operation of taxis and private hire cars in Scotland for the carriage of passengers at separate fares

(1) As respects Scotland, a taxi (other than a taxi which is for the time being operating a local service which is or requires to be registered under this Part of this Act, has been previously advertised and has a destination and route which are not entirely at the discretion of the passengers) or private hire car which is used for the carriage of passengers for hire or reward at separate fares shall not by reason of such use become a public service vehicle for the purposes of the 1981 Act or any related enactment.

(2) In this section “taxi” and “private hire car” have the meanings given in section 23 of the Civic Government (Scotland) Act 1982 and “related enactment” has the meaning given in section 13(3) of this Act.

15 Extension of taxi licensing in England and Wales

(1) Where, immediately before the commencement of this section, the provisions of the M1Town Police Clauses Act 1847 with respect to hackney carriages and of the M2Town Police Clauses Act 1889 (as incorporated in each case in the M3Public Health Act 1875) were not in force throughout the whole of the area of a district council in England and Wales whose area lies outside the area to which the M4Metropolitan Public Carriage Act 1869 applies, those provisions (as so incorporated) shall—

(a) if not then in force in any part of the council’s area, apply throughout that area; and

(b) if in force in part only of its area, apply also in the remainder of that area.

(2) Where part only of a district council’s area lies outside the area to which the Act of 1869 applies, that part shall, for the purposes of subsection (1) above, be treated as being the area of the council.

(3) So much of any local Act as enables a district council to bring to an end the application of the provisions mentioned in subsection (1) above to the whole or any part of their area shall cease to have effect.

16 Taxi licensing: control of numbers

The provisions of the Town Police Clauses Act 1847 with respect to hackney carriages, as incorporated in any enactment (whenever passed), shall have effect—

(a) as if in section 37, the words “such number of” and “as they think fit” were omitted; and

(b) as if they provided that the grant of a licence may be refused, for the purpose of limiting the number of hackney carriages in respect of which licences are granted, if, but only if, the person authorised to grant licences is satisfied that there is no significant demand for the services of hackney carriages (within the area to which the licence would apply) which is unmet.

17 London taxi and taxi driver licensing: appeals

(1) In this section—

• “licence” means a licence under section 6 of the Metropolitan Public Carriage Act 1869 (taxi licences) or under section 8 of that Act (taxi driver licences); and

• “licensing authority” means the person empowered to grant a licence.

(2) Where the licensing authority has refused to grant, or has suspended or revoked, a licence the applicant for, or (as the case may be) holder of, the licence may, before the expiry of the [F1designated period]—

(a) require the authority to reconsider his decision; or

(b) appeal to [F2a magistrates'] court.

(3) Any call for a reconsideration under subsection (2) above must be made to the licensing authority in writing.

(4) On any reconsideration under this section the person calling for the decision to be reconsidered shall be entitled to be heard either in person or by his representative.

(5) If the person calling for a decision to be reconsidered under this section is dissatisfied with the decision of the licensing authority on reconsideration, he may, before the expiry of the [F1designated period], appeal to F2a magistrates' court.

(6) On any appeal to it under this section, the court may make such order as it thinks fit; and any order which it makes shall be binding on the licensing authority.

(7) Where a person holds a licence which is in force when he applies for a new licence in substitution for it, the existing licence shall continue in force until the application for the new licence, or any appeal under this section in relation to that application, is disposed of, but without prejudice to the exercise in the meantime of any power of the licensing authority to revoke the existing licence.

(8) For the purposes of subsection (7) above, where the licensing authority refuses to grant the new licence the application shall not be treated as disposed of—

(a) where no call for a reconsideration of the authority’s decision is made under subsection (2) above, until the expiry of the [F1designated period];

(b) where such a reconsideration is called for, until the expiry of the [F1designated period]which begins by reference to the decision of the authority on reconsideration.

(9) Where the licensing authority suspends or revokes a licence, or confirms a decision to do so, he may, if the holder of the licence so requests, direct that his decision shall not have effect until the expiry of the [F1designated period].

(10) In this section F3. . . .

• [F4“designated period” means such period as may be specified for the purpose by London cab order;

• “London cab order” means an order made by Transport for London]

[ F5(11) Any power to make a London cab order under this section includes power to vary or revoke a previous such order.]

Modification of PSV requirements in relation to vehicles used for certain purposes

18 Exemption from PSV operator and driver licensing requirements of vehicles used under permits

[F1(1)] [F2Section 12(1)] of the 1981 Act (licensing of operators . . . F3 in relation to the use of public service vehicles for the carriage of passengers) shall not apply—

(a) to the use of any vehicle under a permit granted under section 19 of this Act, if and so long as the requirements under subsection (2) of that section are met; [F4or]

(b) to the use of any vehicle under a permit granted under section 22 of this Act;

[F5(2) Where a holder of a licence under Part III of the Road Traffic Act 1988 was first granted a licence under that Part before 1st January 1997, he may drive any small bus at a time when it is being used as mentioned in paragraph (a) or (b) of subsection (1) above, notwithstanding that his licence under that Part does not authorise him to drive a small bus when it is being so used.

(3) Where—

(a) a holder of a licence under Part III of the Road Traffic Act 1988 was first granted a licence under that Part on or after 1st January 1997, or

(b) a Community licence holder is authorised by virtue of section 99A(1) of that Act to drive in Great Britain a motor vehicle of any class,

he may drive any small bus to which subsection (4) below applies at a time when it is being used as mentioned in paragraph (a) or (b) of subsection (1) above, notwithstanding that he is not authorised by his licence under that Part or by virtue of that section (as the case may be) to drive such a bus.

(4) This subsection applies to any small bus which, when laden with the heaviest load which it is constructed to carry, weighs—

(a) not more than 3.5 tonnes, excluding any part of that weight which is attributable to specialised equipment intended for the carriage of disabled passengers, and

(b) not more than 4.25 tonnes otherwise.

(5) In this section—

• “Community licence” has the same meaning as in Part III of the Road Traffic Act 1988, and

• “small bus” has the same meaning as in sections 19 to 21 of this Act.]

19 Permits in relation to use of buses by educational and other bodies

(1) In this section and sections 20 and 21 of this Act—

• “bus” means a vehicle which is adapted to carry more than eight passengers;

• “large bus” means a vehicle which is adapted to carry more than sixteen passengers;

• “small bus” means a vehicle which is adapted to carry more than eight but not more than sixteen passengers; and

• “permit” means a permit granted under this section in relation to the use of a bus for carrying passengers for hire or reward.

(2) The requirements that must be met in relation to the use of a bus under a permit for the exemption under section 18(a) of this Act to apply are that the bus—

(a) is being used by a body to whom a permit has been granted under this section;

(b) is not being used for the carriage of members of the general public nor with a view to profit nor incidentally to an activity which is itself carried on with a view to profit;

(c) is being used in every respect in accordance with any conditions attached to the permit; and

(d) is not being used in contravention of any provision of regulations made under section 21 of this Act.

(3) A permit in relation to the use of a small bus may be granted by a body designated by an order under subsection (7) below either to itself or to any other body to whom, in accordance with the order, it is entitled to grant a permit.

(4) A permit in relation to the use of a small bus may be granted by a traffic commissioner to any body appearing to him to be eligible in accordance with subsection (8) below and to be carrying on in his area an activity which makes it so eligible.

(5) A permit in relation to the use of a large bus may be granted by a traffic commissioner to any body which assists and co-ordinates the activities of bodies within his area which appear to him to be concerned with—

(a) education;

(b) religion;

(c) social welfare; or

(d) other activities of benefit to the community.

(6) A traffic commissioner shall not grant a permit in relation to the use of a large bus unless satisfied that there will be adequate facilities or arrangements for maintaining any bus used under the permit in a fit and serviceable condition.

(7) The Secretary of State may by order designate for the purpose of this section bodies appearing to him to be eligible in accordance with subsection (8) below and, with respect to any body designated by it, any such order—

(a) shall specify the classes of body to whom the designated body may grant permits;

(b) may impose restrictions with respect to the grant of permits by the designated body and, in particular, may provide that no permit may be granted, either generally or in such cases as may be specified in the order, unless there are attached to the permit such conditions as may be so specified; and

(c) may require the body to make returns with regard to the permits granted by it.

(8) A body is eligible in accordance with this subsection if it is concerned with—

(a) education;

(b) religion;

(c) social welfare;

(d) recreation; or

(e) other activities of benefit to the community.

(9) A body may hold more than one permit but may not use more than one bus at any one time under the same permit.

20 Further provision with respect to permits under section 19

(1) Subject to subsection (2) below, a permit shall specify the body to whom it is granted.

(2) A permit may be granted to a named individual on behalf of a body if, having regard to the nature of that body, it appears to the traffic commissioner or body granting the permit appropriate to do so.

(3) Where a permit is granted to a named individual on behalf of a body, it shall be treated for the purposes of this section and section 19 of this Act as granted to that body.

(4) In addition to any conditions attached to such a permit by virtue of section 19(7)(b) of this Act, the traffic commissioner or other body granting such a permit may attach to it such conditions as he or that body considers appropriate, including, in particular, conditions—

(a) limiting the passengers who may be carried in any bus used under the permit to persons falling within such classes as may be specified in the permit; and

(b) with respect to such other matters as may be prescribed.

(5) Subject to subsection (6) below, a permit may be varied or revoked—

(a) by the traffic commissioner or body who granted it; and

(b) in the case of a permit granted by a body designated under section 19(7) of this Act, after consultation with that body, by the traffic commissioner for any traffic area in which any bus has been used under the permit.

(6) A permit may not be varied so as to substitute another body for the body to whom it was granted.

(7) A permit shall remain in force until—

(a) it is revoked under subsection (5) above; or

(b) in the case of a permit granted by a body designated under section 19(7) of this Act, that body ceases to be so designated.

21 Permits under section 19: regulations

(1) Regulations may prescribe—

(a) the conditions to be fulfilled by any person driving a bus while it is being used under a permit;

(b) the conditions as to fitness which are to be fulfilled by any small bus used under a permit;

(c) the form of permits; and

(d) the documents, plates and marks to be carried by any bus while it is being used under a permit and the manner and position in which they are to be carried.

(2) Where regulations are made by virtue of subsection (1)(b) above, section 6 of the 1981 Act (certificate of initial fitness for public service vehicles) shall not apply in relation to any small bus subject to the regulations.

(3) Regulations under this section may contain such transitional provisions as the Secretary of State thinks fit.

22 Community bus permits

(1) In this section and section 23 of this Act—

• “community bus service” means a local service provided—

(a) by a body concerned for the social and welfare needs of one or more communities;

(b) without a view to profit, either on the part of that body or of anyone else; and

(c) by means of a vehicle adapted to carry more than eight but not more than sixteen passengers; and

• “community bus permit” means a permit granted under this section in relation to the use of a public service vehicle—

(a) in providing a community bus service; or

(b) in providing a community bus service and (other than in the course of a local service) carrying passengers for hire or reward where the carriage of those passengers will directly assist the provision of the community bus service by providing financial support for it.

(2) A community bus permit may be granted by the traffic commissioner for the area in which the operating centre for any vehicle used under the permit will be.

(3) A traffic commissioner shall not grant a community bus permit unless he is satisfied that there will be adequate facilities or arrangements for maintaining in a fit and serviceable condition any vehicle used under the permit.

(4) A body may hold more than one community bus permit but may not use more than one vehicle at any one time under the same permit.

23 Further provision with respect to community bus permits

(1) The requirements mentioned in subsection (2) below shall be conditions of every community bus permit and shall apply in relation to any use of a vehicle under such a permit.

(2) Those requirements are that—

(a) the driver receives no payment for driving except—

(i) reimbursement of any reasonable expenses incurred by him in making himself available to drive; and

(ii) an amount representing any earnings lost as a result of making himself available to drive in exceptional circumstances;

(b) the driver either holds [F1a passenger-carrying vehicle driver’s licence [F2or PCV Community licence]] (within the meaning of Part IV of the Road Traffic Act 1988) [F3or] a public service vehicle driver’s licence [F2or PCV Community licence] or fulfils any conditions prescribed in relation to a person driving a vehicle which is being used under a community bus permit; and

(c) any vehicle used under the permit fulfils any prescribed conditions of fitness for such use.

(3) A traffic commissioner may at any time attach to a community bus permit granted by him such conditions (or additional conditions) of a prescribed description as he thinks fit for restricting or regulating the use of any vehicle under the permit.

(4) The traffic commissioner by whom a community bus permit was granted may at any time while the permit is in force vary or remove any condition attached to it under subsection (3) above.

(5) Subject to section 68(3) of the 1981 Act (as applied by section 127(4) of this Act), if a condition attached to a community bus permit is contravened, the holder of the permit shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(6) The traffic commissioner by whom a community bus permit was granted may at any time revoke the permit on the ground—

(a) that he is no longer satisfied with respect to the adequacy of facilities or arrangements for maintaining in a fit and serviceable condition any vehicle used under the permit;

(b) that there has been a contravention of any condition attached to the permit; or

(c) that a prohibition under section 9 of the 1981 Act (power to prohibit driving of unfit public service vehicles) has been imposed with respect to a vehicle used under the permit which has its operating centre in his area.

(7) Where regulations are made by virtue of subsection (1)(c) above, section 6 of the 1981 Act (certificate of initial fitness for public service vehicles) shall not apply in relation to any vehicle subject to the regulations.

(8) Regulations may prescribe—

(a) the form of community bus permits; and

(b) the documents, plates and marks to be carried by any vehicle while it is being used under a community bus permit and the manner and position in which they are to be carried.

Further amendments with respect to PSV operators’ licences

24 Limit on number of vehicles to be used under a restricted licence

(1) In section 16 of the 1981 Act (conditions attached to PSV operators’ licences)—

(a) the following subsection shall be inserted after subsection (1)—

“(1A) In the case of a restricted licence, the number specified as the maximum in any condition imposed under subsection (1) above shall not, except in any prescribed case or class of case, exceed two.”;

(b) in subsection (8) of that section (power of traffic commissioner to dispense temporarily with conditions attached under that subsection), after the words “under this section” there shall be inserted the words “(other than a condition so attached under subsection (1A) above)”; and

(c) in subsection (9) of that section (limited effect of conditions attached under subsection (1)), after the words “subsection (1)” there shall be inserted the words “or (1A)”.

F1(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25 Objections to application for PSV operator’s licence

After section 14 of the 1981 Act (grant of licences) there shall be inserted the following section—

“14A Objections to application for PSV operator’s licence

(1) Where an application is made for the grant of a PSV operator’s licence under this Act, any chief officer of police or local authority may object to the grant of the licence on the ground that one or more of the requirements mentioned in section 14(1) and (3) of this Act are not satisfied in relation to the application.

(2) An objection under this section shall be made within the prescribed time and in the prescribed manner and shall contain particulars of the ground on which it is made.

(3) The onus of proof of the existence of the ground on which an objection is made shall lie on the objector.

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

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

(b) in Scotland, a regional or islands council.

(5) This section does not apply in relation to any application for a special licence (within the meaning of section 12 of the Transport Act 1985).”

26 Conditions attached to PSV operator’s licence

(1) Where it appears to a traffic commissioner, in relation to a person (“the operator”) to whom he has granted or is proposing to grant a PSV operator’s licence, that—

(a) the operator has failed to operate a local service registered under section 6 of this Act; or

(b) the operator has operated a local service in contravention of that section [F1or section 118(4) or 129(1)(b) of the Transport Act 2000;][F2or section 8(4) or section 22(1)(b) of the Transport (Scotland) Act 2001][F3; or

(ba) the operator has failed to comply with section 138 or 140(3) of [F4the Transport Act 2000]]; or

[F5; or

(bb) the operator has failed to comply with section 32(1) or 34(3) of the Transport (Scotland) Act 2001;]

(c) the arrangements for maintaining the vehicles used under the licence in a fit and serviceable condition are not adequate for the use of those vehicles in providing the local service or services in question; or

(d) the operator, or any employee or agent of his, has—

(i) intentionally interfered with the operation of a local service provided by another operator;

(ii) operated a local service in a manner dangerous to the public; or

(iii) been guilty of any other serious misconduct (whether or not constituting a criminal offence) in relation to the operation of a local service; or

(e) a condition attached under section 8 of this Act to the operator’s licence has been contravened;

he may (on granting the licence or at any later time) attach to it either a condition prohibiting the operator from using vehicles under the licence to provide any local service of a description specified in the condition or one prohibiting him from so using vehicles to provide local services of any description.

(2) The commissioner may attach a condition to a PSV operator’s licence under subsection (1) above, by reference to circumstances falling within paragraph (a) or (b) of that subsection if, but only if, it appears to him that the operator did not have a reasonable excuse for his conduct or that it is appropriate to attach the condition in view of—

(a) the danger to the public involved in the operator’s conduct; or

(b) the frequency of conduct of the kind in question on the part of the operator.

(3) Where the effect of a condition attached to a PSV operator’s licence under subsection (1) above is that the operator of a local service registered under section 6 of this Act is prohibited from using vehicles under the licence to provide that service, the traffic commissioner attaching the condition may—

(a) cancel the registration; or

(b) where the service is registered with another traffic commissioner, direct that it be cancelled.

(4) Where a direction is given under subsection (3)(b) above, it shall be the duty of the traffic commissioner with whom the service is registered to cancel the registration.

(5) Where it appears to the commissioner that—

(a) vehicles used under the licence (or under any PSV operator’s licence previously held by the operator) have not been maintained in a fit and serviceable condition; or

(b) the operator has been involved in arrangements with any other operator for the use of each other’s vehicles with a view to hindering enforcement of any requirements of the law relating to the operation of those vehicles;

he may (on granting the licence or at any later time) attach to the licence a condition restricting the vehicles which the operator may use under the licence to vehicles specified in the condition.

(6) A condition attached to a licence under subsection (5) above shall—

(a) apply only to vehicles which have their operating centre in the traffic area for which the commissioner acts; and

(b) be in addition to (and not be taken as prejudicing in any way) any conditions attached to the licence under section 16 of the 1981 Act as to the maximum number of vehicles which the operator may at any one time use under the licence.

27 Supplementary provisions with respect to conditions attached to PSV operator’s licence under section 26

(1) Before attaching any condition to a PSV operator’s licence under section 26 of this Act, a traffic commissioner shall hold an inquiry if he has, within the prescribed period, received a request for an inquiry from the holder of, or (as the case may be) applicant for, the licence.

(2) Subsection (1) above shall not apply where the traffic commissioner is satisfied that the condition should be attached without delay.

(3) Where, in reliance on subsection (2) above, a traffic commissioner attaches any such condition to a PSV operator’s licence without first holding an inquiry, he shall hold one as soon as is reasonably practicable if the holder of the licence has, before the end of such period as may be prescribed, asked him to do so.

(4) For the purposes of section 16(5) of the 1981 Act (traffic commissioner’s power to vary or remove conditions attached under section 16(3) of that Act to a PSV operator’s licence), a condition attached under section 26 of this Act shall be treated as attached under section 16(3) of that Act.

(5) Nothing in section 26 shall be taken as prejudicing the generality of the power under that Act to prescribe descriptions of conditions for the purposes of section 16(3) of that Act.

28 Power to disqualify PSV operators

(1) Where the traffic commissioner for any traffic area revokes a PSV operator’s licence, he may order the former holder to be disqualified, indefinitely or for such period as he thinks fit, from holding or obtaining a PSV operator’s licence.

(2) So long as a disqualification imposed under subsection (1) above is in force with respect to any person,

[F1(a) any PSV operator’s licence held by him at the date of the making of the order under subsection (1) above (other than the licence revoked) shall be suspended (that is, shall remain in force subject to the limitation that no vehicles are authorised to be used under it); and

(b) notwithstanding section 14(4) of the 1981 Act, no PSV operator’s licence may be granted to him.]

[F2(2A) If a person obtains a PSV operator’s licence while he is disqualified under subsection (1) above, the licence shall be void.]

(3) An order under subsection (1) above may be limited so as to apply only to the holding or obtaining of a PSV operator’s licence in respect of the area of one or more specified traffic commissioners and, if the order is so limited, subsection (2) above shall apply only to any PSV operator’s licence to which the order applies.

(4) Where a traffic commissioner makes an order under subsection (1) above with respect to any person, he may direct that if that person, at any time during such period as he may specify—

(a) is a director of, or holds a controlling interest in—

(i) a company which holds a licence of the kind to which the order applies; or

(ii) a company of which a company which holds such a licence is a subsidiary; or

(b) operates any public service vehicles in partnership with a person who holds such a licence;

the powers under section 17(2) of the 1981 Act (revocation, suspension, etc., of PSV operators’ licences) shall be exercisable in relation to that licence by the traffic commissioner by whom it was granted.

(5) The powers conferred by this section in relation to the person who was the holder of a licence shall be exercisable also—

(a) where that person was a company, in relation to any officer of that company; and

(b) where that person operated the vehicles used under the licence in partnership with other persons, in relation to any of those other persons[F3and any reference in subsection (6A) below to subsection (1) above or to subsection (4) above includes that subsection as it applies by virtue of this subsection.]

(6) A traffic commissioner shall not make any such order or give any such direction without first holding an inquiry if any person affected by the proposed order or direction requests him to do so.

[F4(6A) The traffic commissioner by whom any order disqualifying a person was made under subsection (1) above may at any time—

(a) cancel that order together with any direction that was given under subsection (4) above when the order was made;

(b) cancel any such direction; or

(c) with the consent of the person disqualified, vary the order or any such direction (or both the order and any such direction).]

(7) For the purposes of this section a person holds a controlling interest in a company if he is the beneficial owner of more than half its equity share capital.

29 Duty to give Secretary of State information about certain matters

In subsections (1) and (2) of section 20 of the 1981 Act (which require the holder of a PSV operator’s licence to inform the traffic commissioners of certain kinds of failure of, or damage or alteration to, a public service vehicle owned by him), for the words “traffic commissioners who granted the licence” there shall be substituted the words “Secretary of State”.

30 Plying for hire by large public service vehicles

(1) A public service vehicle which is adapted to carry more than eight passengers shall not be used on a road in plying for hire as a whole.

(2) Subject to section 68(3) of the 1981 Act (as applied by section 127(4) of this Act), if a vehicle is used in contravention of subsection (1) above, the operator of the vehicle shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

31 Appeals under the 1981 Act

For sections 50 and 51 of the 1981 Act (appeals) there shall be substituted the following sections—

“50 Appeals to the Transport Tribunal

(1) An applicant for the grant of a PSV operator’s licence under this Act may appeal to the Transport Tribunal against any decision of the traffic commissioner—

(a) to refuse to grant the licence in accordance with the application; or

(b) to attach any condition to the licence otherwise than in accordance with the application.

(2) Where a person who has applied for a new PSV operator’s licence in substitution for a licence held by him and in force at the date of his application appeals to the Transport Tribunal under subsection (1) above, the existing licence shall continue in force until the appeal is disposed of, but without prejudice to the exercise in the meantime of the powers conferred by section 17 of this Act.

(3) Where an application for a PSV operator’s licence is granted under this Act and a person who duly made an objection to the grant under section 14A of this Act is aggrieved by the grant of the licence he may appeal to the Transport Tribunal.

(4) The holder of a PSV operator’s licence may appeal to the Transport Tribunal against any decision of the traffic commissioner—

(a) to refuse his application for the variation or removal of any condition attached to the licence;

(b) to vary any such condition, or to attach any new condition to the licence, otherwise than on his application; or

(c) to revoke or suspend the licence or to curtail its period of validity.

(5) Where—

(a) the holder of a PSV operator’s licence in respect of which an order or direction has been made or given under section 28 of the Transport Act 1985 (power to disqualify PSV operators); or

(b) any person in respect of whom any such order or direction has been made or given;

is aggrieved by the order or direction he may appeal to the Transport Tribunal.

(6) The traffic commissioner—

(a) making any such decision with respect to a licence as is mentioned in subsection (4)(b) or (c) above;

(b) making any such order or giving any such direction as is mentioned in subsection (5) above;

may, if the holder of the licence or any such person as is mentioned in subsection (5)(b) above so requests, direct that his decision shall not have effect until the expiration of the period within which an appeal against it may be made to the Transport Tribunal and, if an appeal is made, until it is disposed of.

(7) Where a traffic commissioner has given a direction under subsection (6) above he may withdraw it at any time.

(8) If the traffic commissioner refuses to give a direction under subsection (6) above or withdraws such a direction, the person requesting it may apply for such a direction to the Transport Tribunal and the Transport Tribunal shall give their decision on the application within fourteen days.

(9) This section does not apply in relation to conditions attached to a PSV operator’s licence under section 8 of the Transport Act 1985 (enforcement of traffic regulation conditions).

51 Appeals to the Secretary of State

(1) A person applying for—

(a) a certificate of initial fitness under section 6 of this Act; or

(b) a certificate under section 10 of this Act that a vehicle conforms to a type vehicle;

may appeal to the Secretary of State against the refusal of a certifying officer to issue such a certificate.

(2) Where the refusal by a certifying officer or public service vehicle examiner to remove a prohibition under subsection (1) of section 9 of this Act (including a prohibition under that subsection as it applies by virtue of section 9A of this Act) has been referred to a certifying officer (“the referee”) under subsection (8) of that section by a traffic commissioner, any person aggrieved by the refusal of the referee to remove the prohibition may appeal to the Secretary of State.

(3) An appeal under this section must be made within the prescribed time and in the prescribed manner; and provision may be made by regulations as to the procedure to be followed in connection with such appeals.

(4) On the determination of an appeal under this section, the Secretary of State may confirm, vary or reverse the decision appealed against, and may give such directions as he thinks fit to the certifying officer for giving effect to his decision; and it shall be the duty of the certifying officer to comply with any such directions.”

Miscellaneous

32 Repeal of sections 28, 47 and 48 of the 1981 Act

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33 Extension of safety controls to certain passenger vehicles other than public service vehicles

The following section shall be inserted in the 1981 Act after section 9 (prohibition on driving unfit public service vehicle following inspection under section 8)—

“9A Extension of sections 8 and 9 to certain passenger vehicles other than public service vehicles

(1) Section 8 of this Act shall apply, with the omission of subsection (1)(b), to any motor vehicle (other than a tramcar) which is adapted to carry more than eight passengers but is not a public service vehicle as it applies to a public service vehicle.

(2) Section 9 of this Act shall apply to any such motor vehicle as it applies to a public service vehicle with the omission of subsection (4).”

Part II Regulation of Road Passenger Transport in London

London local service licences

34 London local services

(1) In this Act “London local service” means (subject to subsection (3) below) a local service with one or more stopping places in London.

(2) In this Part of this Act—

(a) “bus service” means a local service other than an excursion or tour; and

(b) “London bus service” means a London local service other than an excursion or tour.

(3) Where a local service is or is to be provided both inside and outside London, any part of the service which is or is to be provided outside London shall be treated as a separate service for the purposes of this Act if there is any stopping place for that part of the service outside London.

35 London local service licences

(1) Subject to subsection (2) below and to section 36 of this Act, a London local service shall not be provided except under a London local service licence granted in accordance with the following provisions of this Part of this Act.

(2) A London local service licence is not required for the provision by any person under an agreement with the Railways Board [F1, or the Director of Passenger Rail Franchising, of any service secured by the Board or, as the case may be, the Director of Passenger Rail Franchising under section 4A of the 1962 Act (provision of road passenger transport services.)]

(3) The traffic commissioner for the Metropolitan Traffic Area (referred to below in this Part of this Act as the metropolitan traffic commissioner) shall be responsible for granting London local service licences.

(4) Subject to subsection (5) below and to section 39(4) of this Act, a London local service licence shall be of no effect at any time at which the holder does not also hold—

(a) a PSV operator’s licence granted by the metropolitan traffic commissioner or by the traffic commissioner for any other traffic area F2. . .; or

(b) a permit under section 22 of this Act.

(5) Subsection (4) above does not apply to a London local service licence held by a local education authority.

(6) Subject to section 68(3) of the 1981 Act (as applied by section 127(4) of this Act), if a London local service is provided in contravention of subsection (1) above, the operator of the service shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

36 London bus services under control of London Regional Transport

(1) A London local service licence is not required for the provision of a London bus service—

(a) by London Regional Transport or any subsidiary of theirs; or

(b) by any other person in pursuance of any agreement entered into by London Regional Transport by virtue of [F1section 3(2) or (2A)(a)]of the M1London Regional Transport Act 1984 (referred to below in this section as the 1984 Act).

(2) Where—

(a) London Regional Transport or any subsidiary of theirs propose to provide a new bus service which is to be operated wholly or in part as a London bus service or to vary a bus service currently provided by them which is being so operated; or

(b) London Regional Transport propose to enter into an agreement by virtue of [F1section 3(2) or (2A)(a)]of the 1984 Act for the provision of such a new bus service by any other person or to agree to a variation in any bus service currently provided in pursuance of any such agreement which is being so operated;

then, before deciding on, or on the provisions to be contained in any such agreement with respect to, or on any variation affecting, any relevant aspects of that service London Regional Transport shall, so far as the service is or is to be provided in London, consult with the commissioner or commissioners of police concerned, with the local authorities affected, with the Passengers’ Committee and with any other person they think fit.

(3) In subsection (2) above the reference to relevant aspects of the service is a reference to the route of the service, a terminal point, a point at which passengers may or may not be taken up or set down, or a place at which, or street by the use of which, vehicles used for the service may turn at a terminal point.

(4) Where—

(a) London Regional Transport or any subsidiary of theirs propose to discontinue a bus service currently provided by them which is being operated wholly or in part as a London bus service; or

(b) London Regional Transport propose not to renew any agreement entered into by them by virtue of [F1section 3(2) or (2A)(a)] of the 1984 Act for the provision by any other person of any bus service which is being so operated, or to agree to the discontinuance of any such bus service currently provided in pursuance of any such agreement;

then, before any decision is taken to that effect, London Regional Transport shall, so far as the service is provided in London, consult with the local authorities affected, with the Passengers’ Committee and with any other person they think fit.

(5) Where an agreement entered into by London Regional Transport by virtue of [F1section 3(2) or (2A)(a)] of the 1984 Act for the provision of a bus service relates to such a service part only of which is operated as a London bus service, any provision contained in that agreement with respect to the carriage of passengers other than those who are both taken up and set down in London shall be of no effect if or so far as it is inconsistent with any condition for the time being attached under section 8 of this Act to—

(a) a PSV operator’s licence; or

(b) a permit under section 22 of this Act;

held by the operator of the service.

(6) For the purposes of this section the local authorities affected by any proposal with respect to a bus service are any of the following councils, that is to say, the councils of the London boroughs and the Common Council, in whose area there is situated—

(a) in the case of a proposal to which subsection (2) above applies, any part of the route in question or (as the case may be) the point, place or street in question; or

(b) in the case of a proposal to which subsection (4) above applies, any part of the route of the service.

(7) In this section—

(a) references to a new bus service are references to a bus service which has not been provided continuously since before the date on which this section comes into force (disregarding, in the case of a bus service operated during certain periods of the year only, any period other than one during which the service is due to be operated);

(b) “the Passengers’ Committee” means the London Regional Passengers’ Committee established under section 40 of the 1984 Act;

(c) “subsidiary” has the same meaning as in that Act;

and section 6(5) of and paragraph 11(4) of Schedule 5 to that Act shall apply to references in this section to an agreement entered into by London Regional Transport by virtue of [F1section 3(2) or (2A)(a)]of that Act as they apply to such references in that Act.

37 Grant of licences

(1) An application for a London local service licence shall be made in such a form as the metropolitan traffic commissioner may require, and an applicant shall give the commissioner such information as he may reasonably require for disposing of the application.

(2) Where an application is made for the grant of a London local service licence, the commissioner—

(a) shall grant the licence unless he is satisfied that to do so would be against the interests of the public; and

(b) if he grants the licence, shall do so in accordance with the application except to the extent that he is satisfied that to do so would be against the interests of the public.

(3) In considering under subsection (2) above whether the grant of a licence would be against the interests of the public, or the extent to which the grant of a licence in accordance with the application would be against those interests, the commissioner shall in particular have regard to—

(a) the transport needs for the time being of London as a whole and of particular communities within London;

(b) any transport policies or plans which have been made and drawn to his attention by the council of a London borough or by the Common Council; and

(c) any objections or other representations made to the commissioner in the prescribed manner which in his opinion are relevant.

(4) The metropolitan traffic commissioner, on granting a London local service licence, shall send notice of the grant, including particulars of the services to be provided under the licence, to the commissioner or commissioners of police concerned and to each of the local authorities affected.

38 Conditions attached to licences

(1) Subject to subsection (3) below, and to any regulations, the metropolitan traffic commissioner may, on granting a London local service licence, attach to the licence such conditions as he thinks fit having regard to the interests of the public, and in particular to the matters mentioned in section 37(3)(a) to (c) of this Act.

(2) The conditions that may be attached to a London local service licence by virtue of subsection (1) above include, in particular, such conditions as the commissioner thinks fit for securing—

(a) that suitable routes are used in providing any service which may be provided under the licence; and

(b) that passengers are not taken up or are not set down except at specified points, or are not taken up or are not set down between specified points;

and generally for securing the safety and convenience of the public, including persons who are elderly or disabled.

(3) No condition as to fares shall be attached under this section to a London local service licence.

(4) The metropolitan traffic commissioner may at any time while a London local service licence is in force vary the licence by—

(a) altering, in such manner as he thinks fit having regard to the interests of the public, any condition attached to the licence; or

(b) removing any condition attached to the licence, if he thinks fit having regard to those interests; or

(c) attaching to the licence any such condition or additional condition as he thinks fit having regard to those interests.

(5) Where the holder of such a licence makes an application to the commissioner requesting him to exercise his powers under subsection (4) above, the commissioner shall exercise those powers in accordance with the application except to the extent that he is satisfied that to do so would be against the interests of the public.

(6) Compliance with any condition attached to a London local service licence under this section may be temporarily dispensed with by the commissioner if he is satisfied—

(a) that compliance with the condition would be unduly onerous by reason of circumstances not foreseen when the condition was attached or, if the condition has been altered, when it was last altered; and

(b) that such a dispensation would not be against the interests of the public.

(7) Subject to section 68(3) of the 1981 Act (as applied by section 127(4) of this Act), if a condition attached under this section to a London local service licence is contravened, the holder of the licence shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

39 Grant of licences for certain excursions or tours

(1) This section applies where, in the case of any application for a London local service licence, the metropolitan traffic commissioner is satisfied that the service which the applicant proposes to provide under the licence (“the proposed service”) would be an excursion or tour and is also satisfied either—

(a) that the proposed service would not compete directly with any authorised London bus service; or

(b) that the proposed service would operate only to enable passengers to attend special events.

(2) In subsection (1)(a) above, “authorised London bus service” means—

(a) any London bus service for which a London local service licence has been granted; and

(b) any London bus service which, by virtue of section 36(1) of this Act, does not require a London local service licence.

(3) In any case to which this section applies, sections 35, 37 and 38 of this Act shall apply subject to the modifications provided by the following provisions of this section.

(4) Section 35(4) of this Act shall not prevent a London local service licence granted in pursuance of this section from having effect for the purposes of the provision of a service by means of a vehicle whose operator holds any such licence or permit as is there mentioned F1. . ..

(5) The interests of the public falling to be considered under any provision of section 37 or 38 shall be confined to the interests of the public in securing that only places which are suitable for use as such are used as stopping places for the service in question in London.

The reference above in this subsection to the service in question is a reference to the proposed service or the service provided under any London local service licence granted on an application to which this section applies (as the case may require).

(6) For the purposes of this section a place is to be regarded as not being suitable for use as a stopping place for any service if the commissioner is satisfied that its use as such would be prejudicial to the safety or convenience of the public.

(7) Section 37 shall apply with the omission of paragraphs (a) and (b) of subsection (3); and paragraph (c) of that subsection shall apply only in relation to objections or representations made by the commissioner or commissioners of police concerned or by any of the local authorities affected.

(8) Section 38 shall apply with the omission of subsections (1) and (2), but the metropolitan traffic commissioner in granting a licence on any application to which this section applies may attach to the licence such conditions of a description within section 38(2)(b) as he thinks fit, having regard to any objections or other representations that fall to be considered in relation to that application by virtue of section 37(3)(c), for securing that only places which are suitable for use as such are used as stopping places for the proposed service in London.

(9) Any condition attached to a licence under subsection (8) above shall be treated for the purposes of section 38(6) and (7) as if it had been attached under that section.

(10) Every London local service licence granted in pursuance of this section shall include a statement that it is so granted.

40 Revocation and suspension of licences

(1) Subject to subsection (2) below, a London local service licence may be revoked or suspended by the metropolitan traffic commissioner on the ground that there has been a contravention of any condition attached to it.

(2) The commissioner shall not revoke or suspend a London local service licence unless, owing to the frequency of the breach of conditions, or to the breach having been committed intentionally, or to the danger to the public involved in the breach, the commissioner is satisfied that the licence should be revoked or suspended.

(3) On revoking or suspending a London local service licence the metropolitan traffic commissioner shall send notice of the revocation or suspension to every commissioner of police or local authority notified of the grant of the licence in accordance with section 37(4) of this Act.

(4) A London local service licence suspended under this section shall during the time of suspension be of no effect.

41 Duration of licences

(1) Subject to subsection (2) below, a London local service licence shall, unless previously revoked, continue in force until the end of the period of five years beginning with the date on which it takes effect, unless at the time of the granting of the licence the metropolitan traffic commissioner for special reasons determines that it shall continue in force only for a shorter period, in which case it shall, unless previously revoked, continue in force only until the end of that shorter period.

(2) If, on the date on which a London local service licence is due to expire, proceedings are pending before the metropolitan traffic commissioner on an application for the grant of a new licence in substitution for it, the existing licence shall continue in force until the application is disposed of, but without prejudice to the exercise in the meantime of the powers conferred by section 40 of this Act.

(3) Nothing in this section shall prevent—

(a) the grant of a London local service licence limited to one or more particular periods or occasions; or

(b) the attachment to a London local service licence of a condition that the service shall be so limited.

Supplementary provisions

42 Appeals to the Secretary of State

(1) A person who has applied for the grant of a London local service licence may appeal to the Secretary of State against any decision of the metropolitan traffic commissioner—

(a) to refuse to grant the licence in accordance with the application; or

(b) to attach any condition to the licence otherwise than in accordance with the application.

(2) Where a person who has applied for a new London local service licence in substitution for a licence held by him and in force at the date of his application appeals to the Secretary of State under subsection (1) above against any such decision as is mentioned in paragraph (a) or (b) of that subsection, the existing licence shall continue in force until the appeal is disposed of, but without prejudice to the exercise in the meantime of the powers conferred by section 40 of this Act.

(3) The holder of a London local service licence may appeal to the Secretary of State against any decision of the metropolitan traffic commissioner—

(a) to refuse an application by the holder for the variation or removal of any condition attached to the licence;

(b) to vary any such condition, or to attach any new condition to the licence, otherwise than on an application by the holder; or

(c) to revoke or suspend the licence.

(4) Where the commissioner makes any such decision with respect to a licence as is mentioned in subsection (3)(b) or (c) above he may, if the holder of the licence so requests, direct that his decision shall not have effect until the expiration of the period within which an appeal against it may be made to the Secretary of State under that subsection and, if such an appeal is made, until the appeal is disposed of.

(5) If the commissioner refuses to give a direction under subsection (4) above, the holder of the licence may apply to the Secretary of State for such a direction, and the Secretary of State shall give his decision on the application within fourteen days.

(6) A person who has applied for the grant of a London local service licence, or for the variation or removal of any conditions attached to such a licence, shall, if the metropolitan traffic commissioner fails to come to a decision on the application within a reasonable time, have the same right to appeal to the Secretary of State as if the commissioner had decided to refuse the application.

(7) A person other than the applicant for, or holder of, a London local service licence may, if he has standing in the matter in accordance with the following provisions of this section, appeal to the Secretary of State against any decision of the metropolitan traffic commissioner with respect to—

(a) the grant, revocation or suspension of a London local service licence; or

(b) the attachment of any condition to a London local service licence or the variation or removal of any condition attached to such a licence.

(8) Subject to subsection (9) below, the persons having standing to appeal under subsection (7) above against a decision of the metropolitan traffic commissioner with respect to a London local service licence are—

(a) any local authority affected; and

(b) any person providing transport facilities along or near the route, or part of the route, of the service which is being or is to be provided under the licence;

being a local authority or person who has made objections or other representations to the commissioner in the course of the proceedings resulting in that decision.

(9) Subsection (8)(b) above shall not apply in the case of any decision of the metropolitan traffic commissioner on an application to which section 39 of this Act applies or with respect to a London local service licence granted in pursuance of that section.

(10) An appeal under this section must be made within the prescribed time and in the prescribed manner; and provision may be made by regulations as to the procedure to be followed in connection with appeals under this section.

(11) On any appeal under this section the Secretary of State may, if he thinks fit, remit the matter to the metropolitan traffic commissioner for rehearing and determination by him; and, if he does so, he may give to the commissioner such directions as he thinks fit with respect to the consideration to be given to any circumstances of the case.

(12) On the determination of an appeal under this section the Secretary of State may confirm, vary or reverse the decision appealed against, and may give such directions as he thinks fit to the metropolitan traffic commissioner for giving effect to his decision.

43 Further appeals on points of law

(1) An appeal lies to the High Court at the instance of any of the persons mentioned in subsection (2) below on any point of law arising from a decision of the Secretary of State on an appeal from a decision of the metropolitan traffic commissioner.

(2) The persons who may appeal against any such decision of the Secretary of State are—

(a) the person who appealed to the Secretary of State;

(b) any person who had a right to appeal to the Secretary of State against the relevant decision of the commissioner but did not exercise that right;

(c) any person who would have had a right of appeal to the Secretary of State against the relevant decision of the commissioner if aggrieved by that decision and who is aggrieved by the decision of the Secretary of State on the appeal; and

(d) the metropolitan traffic commissioner.

(3) If on an appeal under this section the High Court is of opinion that the decision appealed against was erroneous in point of law, it shall remit the matter to the Secretary of State with the opinion of the court for rehearing and determination by him.

(4) No appeal to the Court of Appeal may be brought from a decision of the High Court under this section except with the leave of the High Court or the Court of Appeal.

44 Application of provisions of the 1981 Act

(1) The provision of the 1981 Act mentioned in subsection (2) below shall apply in relation to the grant of London local service licences, or to London local service licences granted, under this Part of this Act, as they apply in relation to the grant of PSV operators’ licences, or to PSV operators’ licences granted, under that Act.

(2) Those provisions are—

• section 57 (death, bankruptcy, etc., of licence holder);

• section 58(2) (grant of licences to unincorporated body or to persons jointly); and

• section 59 (regulations with respect to procedure on applications for licences).

(3) Section 84 of that Act (which relates to the effect of that Act in relation to general public interests) shall have effect as if the provisions of this Part of this Act were contained in that Act.

45 Interpretation of Part II

(1) In this Part of this Act—

• “commissioner of police” means—

(a) in relation to the metropolitan police district, the Commissioner of Police of the Metropolis; and

(b) in relation to the City of London, the Commissioner of Police for the City of London;

• “the Common Council” means the Common Council of the City of London;

• “bus service” and “London bus service” have the meanings given by section 34(2) of this Act; and

• “metropolitan traffic commissioner” shall be read in accordance with section 35(3) of this Act.

(2) Subject to subsection (3) below, for the purposes of—

(a) section 37(4) of this Act; and

(b) section 42(8)(a) of this Act;

the local authorities affected are any of the following councils, that is to say, the councils of the London boroughs and the Common Council, in whose area the service, or any part of the service, is being or (as the case may be) is to be provided under the licence in question.

(3) For the purposes of—

(a) section 39(7) of this Act; and

(b) section 42(8)(a) of this Act as it applies in a case within subsection (9) of that section;

the local authorities affected are any of the councils mentioned in subsection (2) above in whose area there is situated any stopping place for the proposed service or (as the case may be) for the service which is being provided under the licence in question.

Repeal of Part II

46 Power of Secretary of State to repeal Part II

(1) The Secretary of State may by order repeal this Part of this Act.

(2) Any order made under this section may contain such supplementary, incidental, consequential and transitional provisions as may appear to the Secretary of State to be necessary or expedient (including provision making such amendments or repeals in any provision of this or any other Act as may appear to the Secretary of State to be required in consequence of the repeal of this Part of this Act).

(3) 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.

Part III The National Bus Company

The Bus Company’s disposal programme

F147 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F148 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Powers of disposal

F149 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F150 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F151 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F152 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Miscellaneous and supplementary

F153 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54 Dissolution of the Bus Company

(1) When it appears to the Secretary of State that the Bus Company have completed their disposal programme, the Secretary of State may by order provide for the dissolution of the Company.

(2) Any such order may provide for the disposal of any remaining property, rights or liabilities of the Company, and 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 make provision—

(a) F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) making such amendments or repeals in any provision of the 1962 Act or the 1968 Act or of this or any other Act as appear to the Secretary of State to be required in consequence of the dissolution of the Company.

(4) F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

55 Reduction of assets of National Loans Fund

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

56 Interpretation of Part III

In this Part of this Act—

(a) references to the Bus Company shall be read in accordance with section 47(1) of this Act; and

(b) “the Company’s disposal programme” has the meaning given by subsection (4) of that section.

Part IV Local Passenger Transport Services

Passenger Transport Areas

57 Passenger Transport Areas, Authorities and Executives

(1) In section 9 of the 1968 Act (designation of passenger transport areas and establishment of Passenger Transport Authorities and Executives)—

(a) for subsections (1) to (4) there shall be substituted the following subsections—

“(1) For the purposes of this Part of this Act—

(a) each of the following areas, that is to say—

(i) in England and Wales, the metropolitan counties; and

(ii) in Scotland, that part of the Strathclyde region which was a designated area for the purposes of this Part of this Act immediately before the date on which section 57 of the Transport Act 1985 came into operation;

shall be a passenger transport area;

(a) the Passenger Transport Authority for a passenger transport area (referred to below in this Part of this Act, in relation to that area, as “the Authority”) shall be—

(i) in relation to a passenger transport area in England and Wales, the metropolitan county council; and

(ii) in relation to the Strathclyde passenger transport area, the Strathclyde regional council; and

(c) the Passenger Transport Executive for a passenger transport area (referred to below in this Part of this Act, in relation to that area, as “the Executive”) shall be the body which immediately before the date mentioned in paragraph (a) above was the Passenger Transport Executive for the designated area for the purposes of this Part of this Act corresponding to that passenger transport area.

(2) The Executive for a passenger transport area consists of—

(a) a Director General appointed in accordance with Part II of Schedule 5 to this Act by the Authority; and

(b) not less than two nor more than eight other members so appointed by the Authority after consultation with the Director General.

(3) Subject to subsection (2) of this section and Part II of Schedule 5 to this Act, the Secretary of State may by order make with respect to the Executive for any passenger transport area—

(a) such provision with respect to any of the matters referred to in Part III of that Schedule; and

(b) such supplementary, incidental and consequential provision;

as appears to the Secretary of State to be necessary or expedient.

(4) Before making any order under subsection (3) of this section, the Secretary of State shall consult with the Passenger Transport Authority for the area and, where the area is in England and Wales, with the councils of the districts comprised in the area.”;

(b) in subsection (5), as it applies to England and Wales, for the words “constituent areas” there shall be substituted the words “the districts comprised in a passenger transport area”;

(c) in subsection (5), as it applies to Scotland, for the word “designated” there shall be substituted the words “passenger transport”; and

(d) subsection (7) shall be omitted.

(2) After section 9 there shall be inserted the following sections—

“9A General functions of Passenger Transport Authorities and Executives

(1) It shall be the duty of the Authority for any passenger transport area to formulate from time to time general policies with respect to the descriptions of public passenger transport services they consider it appropriate for the Executive for their area to secure for the purpose of meeting any public transport requirements within their area which in the view of the Authority would not be met apart from any action taken by the Executive for that purpose.

(2) The Authority shall seek and have regard to the advice of the Executive for their area in formulating their policies under subsection (1) of this section.

(3) It shall be the duty of the Executive for any passenger transport area to secure the provision of such public passenger transport services as they consider it appropriate to secure for meeting any public transport requirements within their area in accordance with policies formulated by the Authority for their area under subsection (1) of this section.

(4) The Executive shall have power to enter into an agreement providing for service subsidies for the purpose of securing the provision of any service under subsection (3) of this section; but their power to do so—

(a) 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 the Transport Act 1985 (tendering for local services, etc.).

(5) Where it appears to the Authority for any passenger transport area that it would be appropriate for the Executive for that area to take any measures for the purpose of or in connection with promoting, so far as relates to that 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 Authority 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);

the Authority may from time to time formulate general policies with respect to the description of such measures to be taken by the Executive for that area, and the Executive shall take such measures for the purpose or in the connection mentioned above as appear to them to be appropriate for carrying out those policies.

(6) It shall be the duty—

(a) of the Authority for any passenger transport area, in formulating any such policies; and

(b) of the Executive for any passenger transport area, in carrying out any such policies;

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

(7) It shall be the duty both of the Authority and of the Executive for any passenger transport area, 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.

(8) No person who is for the time being—

(a) the operator of any public passenger transport services;

(b) a director of any company or (as the case may be) an employee of any company or other person who is such an operator;

(c) a director or employee of any company which is a member of a group of inter-connected bodies corporate any one or more of which is such an operator;

(d) in Scotland, a partner or (as the case may be) an employee of a partner of such an operator;

shall be appointed as a member, officer or servant of the Executive for any passenger transport area; and any person so appointed who subsequently becomes such an operator, director, partner or employee shall immediately vacate his membership of the Executive, or (as the case may be) his office or employment with the Executive.

(9) References in subsection (5) above to subsidised services are references to services provided under an agreement providing for service subsidies entered into—

(a) by the Executive for the area in question or for any other area under subsection (4) of this section; or

(b) by any non-metropolitan county or district council in England and Wales or by any regional or islands council in Scotland under section 63 of the Transport Act 1985.

(10) For the purposes of subsection (8) 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.

(11) In this section and section 9B of this Act “public passenger transport services” has the same meaning as in the Transport Act 1985; and—

(a) references in this section to agreements providing for service subsidies; and

(b) references in this section and that section to the operator of, or to persons operating, any public passenger transport services;

shall be read as if contained in that Act.

9B 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 9A(1) of this Act, the Authority for a passenger transport area shall consult—

(a) with every Passenger Transport Authority, county council or regional 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 Authority to be representative of such persons;

and where the passenger transport area is in England and Wales the Authority shall also consult with the councils of the districts comprised in that area about the requirements of transport arising out of or in connection with the exercise and performance by those councils of their functions as local education authorities or of their social services functions.

(2) As soon as practicable after any occasion when they formulate new or altered policies for those purposes, the Authority concerned shall publish a statement of all policies so formulated by them on that or any previous occasion which for the time being apply in relation to the performance by the Executive for their area of their duty to secure services under section 9A(3).

(3) When the Authority 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 Authority 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.”

(3) Section 20 of the 1968 Act (which imposes a special duty on the Executive for any passenger transport area to which that section is applied by an order made by the Secretary of State under subsection (1) of that section to secure by agreement with the Railways Board the provision of such railway passenger services as the Authority decide to be necessary to ensure a proper contribution towards the provision of a properly integrated and efficient system of public passenger transport to meet the needs of their area) shall apply in relation to the Executive for every passenger transport area; and subsection (1) of that section shall accordingly cease to have effect.

(4) Without prejudice to section 17(2)(b) of the M1Interpretation Act 1978 (preservation of subordinate legislation) any order under section 9(1) of the 1968 Act or under section 202(4) of the 1972 Act (orders establishing Passenger Transport Executives) which applies in relation to a Passenger Transport Executive immediately before this section comes into force shall have effect, so far as it makes with respect to that Executive any such provision as is mentioned in section 9(3) (as substituted by subsection (1) above), as if made under that provision (as so substituted).

(5) Section 9A(8) of the 1968 Act shall not apply in relation to any person appointed before this section comes into force as a member, officer or servant of the Passenger Transport Executive for any passenger transport area.

(6) Schedule 3 to this Act shall have effect for the purpose of making amendments consequential on the provisions of this section in the 1968 Act and in the other enactments there mentioned.

58 Local government reorganisation: transport functions

(1) The following provisions of this section, with the exception of subsection (5), shall have effect from the abolition date within the meaning of the M1Local Government Act 1985 (that is to say, 1st April 1986).

(2) In section 9 of the 1968 Act (as amended by section 57(1) of this Act)—

(a) in subsection (1)—

(i) at the beginning there shall be inserted the words “Subject to any order under section 42(1)(c) of the Local Government Act 1985 (alteration or abolition of passenger transport areas, etc.)”; and

(ii) in paragraph (b)(i), for the word “council” there shall be substituted the words “passenger transport authority for the county which is coterminous with or includes that passenger transport area”;

(b) in subsection (4), after the word “the” (where it last occurs) there shall be inserted the words “county which is coterminous with or includes that”; and

(c) in subsection (5), as it applies in England and Wales, after the words “comprised in” there shall be inserted the words “a county which is coterminous with or includes”.

[F1(3) In section 9B(1) of that Act, after the words “comprised in” there shall be inserted the words “the county which is coterminous with or includes”.]

(4) In the M2Local Government Act 1985—

(a) paragraphs 1, 2 and 4 of Schedule 12 shall be omitted;

(b) in section 39(2) (operative dates for Schedule 12), for the words “paragraphs 1 to 4” there shall be substituted the words “paragraph 3”; and

(c) in section 42(1)(c) (reorganisation of functions with respect to passenger transport), after the words “section 39 above” there shall be inserted the words “or section 58 of the Transport Act 1985”.

(5) Provisions of that Act referring generally to that Act, or to any provision made by or under that Act, shall have effect as if subsections (1) to (3) above were contained in that Act.

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 M1Companies 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 M1Companies 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 M2Companies 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.

Passenger transport in other areas

63 Functions of local councils with respect to passenger transport in areas other than 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; F1. . .

F1(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) It shall be the duty of a F2. . . 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 F3. . . (2)(b) above with respect to the descriptions of services they propose to secure under subsection F3. . . (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 F4. . . as an education authority; or

(b) any of their F5. . . social work functions.

(4) A non-metropolitan district council in England F6. . . 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) 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.

(6) A non-metropolitan county council in England and Wales or, in Scotland, a F2. . . 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, [F7to 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 [F8and to the appropriate bus strategy.].

[F9(8A) In subsection (8) “the appropriate bus strategy” means—

(a) in the case of a council which is a local transport authority (within the meaning of section 108(4) of the Transport Act 2000), their bus strategy;

(b) in the case of a district council which is not such an authority, the bus strategy of the council for the county in which the district is situated.]

(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 passenger transport area under section 9A(4) of the 1968 Act.

(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.

63 Functions of local councils with respect to passenger transport in areas other than 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; and

(b) to formulate from time to time general policies as to the descriptions of services they propose to secure under paragraph (a) above.

(2) It shall be the duty of a F1. . . 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.

F2(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) A non-metropolitan district council in England F3. . . 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) shall be exercisable only where the service in question[F4—(i)] would not be provided [F5;or

(ii) would not be provided to the standard specified in a quality partnership scheme made under section 6 of the Transport (Scotland) Act 2001 (asp 2),]

without subsidy; and

(b) is subject to [F6section] 92 of this Act.

(6) A non-metropolitan county council in England and Wales or, in Scotland, a F1. . . 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 [F7, in Scotland , a] council, in exercising their power under subsection (6) above, so to conduct themselves as not to inhibit competition between persons providing or seeking to provide public passenger transport services in their area.

(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.

(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 [F8in Scotland] council under this section; or

(b) by the Passenger Transport Executive for any passenger transport area under section 9A(4) of the 1968 Act.

(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 [F8in Scotland] 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 [F163(2)(b)] of this Act, any council to whom [F2that provision] applies shall consult—

(a) with every 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;

F3. . ..

(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 F4. . . 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.

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(1)(b) or (2)(b) of this Act, any council to whom either of those provisions applies shall consult—

(a) with every Passenger Transport Authority, county council or [F1in Scotland] 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;

and where the council’s area is in England F2. . . the council shall also consult with the councils of districts comprised in their area.

(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(1)(a) or (as the case may be) 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 [F1Transport 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) [F2Transport 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 [F3Transport for London or any of its subsidiaries (within the meaning of the Greater London Authority Act 1999)] .

[F4(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.]

(4) F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

66 Exclusion of powers of certain councils to run bus undertakings

(1) Subject to section 71 of this Act and subsection (2) below, but notwithstanding anything in any other statutory provision, a non-metropolitan district council in England [F1a county council or county borough council in Wales] or, in Scotland, a [F2 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.

(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 M1Companies 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—