Legalize / United Kingdom / Public General Act

Transport Act 1968

Type Public General Act

Publication 1968-10-25

Last updated 2024-05-07

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

Part I — Integration of Freight Transport Services

The National Freight Corporation

Expenses.

1

General powers of Freight Corporation

2

(1) Subject and without prejudice to the provisions of, or of any enactment applied by, sections 47 to 52 of this Act, the Freight Corporation shall have power—

(a) to carry goods by road, whether in or outside Great Britain;

(b) to enter into arrangements with the Railways Board for the conveyance of goods by the Board, whether as agents of the Corporation or otherwise, on such terms as may be provided for in the arrangements—

(i) by rail, whether in vehicles provided by the Corporation or by the Board or by some other person;

(ii) by means of any transport services provided by the Board in pursuance of their powers under section 5 of the Act of 1962;

(c) to act as agent for the Railways Board for the purposes of any services for the carriage of goods provided by the Board;

(d) to provide—

(i) the like transport services by sea as immediately before the appointed day for the purposes of section 4(1) of this Act were provided by any of the bodies to whose securities that section relates;

(ii) with the consent of the Minister, any other transport services by sea;

(e) with the consent of the Minister, to provide transport services by hovercraft;

(f) to consign goods on behalf of other persons from or to any place, whether in Great Britain or elsewhere ;

(g) to store goods which have been or are to be carried by the Corporation, the Railways Board or a subsidiary of the Corporation or that Board, and—

(i) so far as any premises provided by the Corporation for the purposes of that or any other part of their business are not required for those purposes, to use them to provide facilities for the storage of other goods;

(ii) with the consent of the Minister, to provide such facilities at any other premises ;

(h) to enter into and carry out agreements with any person engaged in the provision of services for the carriage of goods, by whatever form of transport, for co-ordinating the activities of that person with those of the Corporation, and in particular for the provision of combined services for the through carriage of goods, whether by the same or partly by one and partly by another form of transport, for the quoting of through rates, and for the pooling of receipts or expenses;

(j) to join with any person engaged as mentioned in paragraph (h) of this subsection in forming, promoting and assisting a company for carrying on any activities in connection with such combined services as are so mentioned which the Corporation or that person have power to carry on;

(k) either alone or together with any other person, to provide, maintain and operate depots for the sorting of goods, with facilities for the reception, storage, weighing and handling of goods and for compliance with the requirements of the enactments relating to customs and excise;

(l) to operate harbours;

(m) to let for hire any vehicle, vessel or other means of transport owned by them ;

(n) with the consent of the Minister, to carry on any activities which the Corporation would not apart from this paragraph have power to carry on but which a subsidiary of the Corporation was carrying on immediately before it became such a subsidiary.

(2) The Freight Corporation shall not be regarded as common carriers in respect of any of their activities.

Financial provisions with respect to Freight Corporation

3

(1) Subject and without prejudice to the provisions of section 41 of this Act, the following provisions of the Act of 1962, namely—

(a) section 18 (financial duty of Boards);

(b) section 19 (borrowing powers of Boards);

(d) section 21 (Treasury guarantees); and

(e) section 24 (accounts),

shall apply to the Freight Corporation as they apply to the Boards.

(2) The Freight Corporation shall assume a commencing capital debt in accordance with the provisions of Schedule 2 to this Act.

(3) The aggregate amount outstanding in respect of—

(a) the principal of any money borrowed by the Freight Corporation under section 19 of the Act of 1962, and

(b) the Corporation's commencing capital debt,

shall not exceed £200 million or such greater sum not exceeding £300 million as the Minister may from time to time by order specify; but no order shall be made under this subsection unless a draft thereof has been approved by a resolution of the Commons House of Parliament.

Transfer of assets, etc

Transfer to Freight Corporation of certain securities, rights and liabilities

4

(1) On the appointed day for the purposes of this subsection—

(a) the securities of the bodies listed in Part I of Schedule 3 to this Act, so far as beneficially owned on that day by the Holding Company or by any wholly-owned subsidiary of that Company, and

(b) the securities of the bodies listed in Part II of that Schedule, so far as beneficially owned on that day by the Railways Board, and

(c) any rights or liabilities on that day of that Company or subsidiary or, as the case may be, of that Board regarding the securities of any of those bodies, and

(d) the right to any money owed on that day to that Company or subsidiary or, as the case may be, to that Board by any of those bodies, and

(e) the liability represented by any money owed on that day by that Company or subsidiary or, as the case may be, by that Board to any of those bodies, and

(f) any rights and liabilities of that Company on that day in connection with B.R.S. Federation Limited, and

(g) any rights and liabilities of the Holding Company by virtue of paragraph 5(a) or (d) of Schedule 5 to the Act of 1962,

shall, subject to subsection (3) of this section, be transferred to, and by virtue of this Act vest in, the Freight Corporation.

(2) The Minister may by order made not later than the appointed day aforesaid add to Part I or Part II of the said Schedule 3 any body not for the time being listed in that Part if the Minister is satisfied—

(a) that the activities of the body are similar to those of the bodies for the time being listed in one or other of those Parts; and

(b) that the Holding Company or a wholly-owned subsidiary of that Company or, as the case may be, the Railways Board are for the time being the beneficial owners of any securities of that body.

(3) Where any of the securities aforesaid are beneficially owned as mentioned in paragraph (a) or (b) of subsection (1) of this section but held by a nominee, that subsection shall operate only to transfer the beneficial interest in the securities; and paragraphs (d) and (e) of that subsection shall not apply to money owed in the ordinary course of trading.

(4) The rights and liabilities of the Holding Company under such agreements for the rendering of personal services by persons who immediately before the appointed day aforesaid are employed by the Holding Company as may be determined in accordance with arrangements agreed between that Company and the Corporation before that day or, in default of such agreement, in accordance with such arrangements as the Minister may before that day direct, shall on that day be transferred to, and by virtue of this Act vest in, the Corporation.

(5) Paragraph 2(3) and (4) of Schedule 4 to this Act shall apply to any transfer under subsection (4) of this section, and paragraphs 1 to 13 of that Schedule shall apply to any transfer under that subsection or subsection (1) of this section.

Formation by Railways Board of, and transfer to Freight Corporation of shares in, subsidiary companies

5

(1) The Railways Board shall take steps to the satisfaction of the Minister to effect, not later than two days before the appointed day for the purposes of the transfer referred to in subsection (3)(b) of this section, the separation from the remainder of their undertaking of those parts thereof concerned respectively with—

(a) the carriage of freightliner containers and other high capacity containers (other than container traffic consigned from private railway sidings); and

(b) the following activities, namely—

(i) the carriage of the freight traffic commonly known as rail sundries traffic; and

(ii) the collection and delivery of goods by road otherwise than by way of such carriage as is mentioned in paragraph (a) of this subsection,

but excluding the provision of rail vehicles for, and the haulage by rail of, the containers referred to in paragraph (a) or, as the case may be, the traffic referred to in paragraph (b)(i) of this subsection; and the Board shall from time to time furnish the Minister with such information as he may require with respect to the property, rights and liabilities which the Board propose to treat as included in each respectively of those parts of their undertaking, and the Minister may give directions to the Board as to the property, rights and liabilities to be so treated.

(2) The Railways Board shall secure that, not later than two days before the appointed day aforesaid, two wholly-owned subsidiaries of the Board are formed of which—

(a) one (hereafter in this section referred to as " the freight-liner company") shall be formed with the object of carrying on such activities as are mentioned in subsection (1)(a) of this section; and

(b) the other (hereafter in this section referred to as " the freight sundries company ") shall be formed with the object of carrying on such activities as are mentioned in subsection (1)(b) of this section;

and all securities of those companies shall be issued, as the Railways Board may direct (after consultation, in the case of fifty-one per cent. in nominal value of the securities of the freightliner company and in the case of all the securities of the freight sundries oompany, with the Freight Corporation), to the Board or to such other person or persons as the Board may nominate to hold them.

(3) Subject to subsection (4) of this section—

(a) on the day before the appointed day aforesaid there shall be transferred to, and by virtue of this Act vest in, the freightliner company and the freight sundries company respectively all the property, rights and liabilities comprised in the part of the Railways Board's undertaking referred to in paragraph (a) or, as the case may be, paragraph (b) of subsection (1) of this section; and

(b) on the appointed day there shall be transferred to, and by virtue of this Act vest in, the Freight Corporation the aforesaid fifty-one per cent. of the securities of the freightliner company and all the securities of the freight sundries company.

(4) Schedule 4 to this Act shall apply to any transfer under paragraph (a), and paragraphs 7 to 13 of that Schedule shall apply to any transfer under paragraph (b), of subsection (3) of this section, and the said paragraph (a) shall have effect subject to the provisions of that Schedule; and, in the case of any securities held by any person other than the Railways Board, the said paragraph (b) shall operate only to transfer the beneficial interest in those securities.

(5) For the period of five years beginning with the appointed day aforesaid the Minister may make to the Freight Corporation grants of such amount for each respectively of those years payable in such manner as the Minister may with the approval of the Treasury determine towards any loss which it is estimated will be incurred in that year by the Corporation or the freight sundries company in the carrying on of such activities as are referred to in subsection (1)(b) of this section; but the aggregate amount of those grants shall not exceed £60 million.

The Freight Integration Council

6

Redistribution of activities between Freight Corporation and Railways Board or Scottish Group

Transfer schemes by authorities

7

Transfer orders by Minister

8

Part II — Integrated Transport Areas and Passenger Transport Areas

Designation of Integrated Transport Areas or Passenger Transport Areas and establishment and functions of Authorities and Executives

Passenger Transport Areas, Authorities and Executives

9

(1) Subject to any order under section 42(1)(c) of the Local Government Act 1985 (alteration or abolition of passenger transport areas, etc.) for the purposes of this Part of this Act—

(a) each of the following areas shall be designated as follows, that is to say—

(i) in England and Wales, each of the metropolitan counties except a metropolitan county which is or is included in a combined authority area or a combined county authority area shall be an integrated transport area; ...

(ia) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) in Scotland, such area to be known as the Strathclyde Passenger Transport Area as the Minister may designate for the purposes of section 40 of the Local Government etc. (Scotland) Act 1994 shall be a passenger transport area;

(aa) any reference to a “combined authority” is to an authority established under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009 for an area which is or includes a metropolitan county;

(ab) any reference to a “combined authority area” is to an area for which a combined authority is established;

(ac) any reference to a “combined county authority” is to an authority established under section 9(1) of the Levelling-up and Regeneration Act 2023 for an area which is or includes a metropolitan county;

(ad) any reference to a “combined county authority area” is to an area for which a combined county authority is established;

(b) any reference to “the Authority” is a reference to—

(i) in relation to an integrated transport area in England and Wales, the Integrated Transport Authority established for the metropolitan county which is coterminous with or includes that integrated transport area; ...

(ia) in relation to a combined authority area ..., the combined authority;

(iaa) in relation to a combined county authority area, the combined county authority;

(ib) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) in relation to the Strathclyde Passenger Transport Area, the Strathclyde Passenger Transport Authority

(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 any reference to “the Executive” is a reference to—

(i) in England and Wales (except as mentioned in sub-paragraph (ia) sub-paragraphs (ia) to (ie)) 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; and

(ia) in relation to the area of the West Yorkshire Combined Authority, that Authority;

(iaa) in relation to the area of the West Midlands Combined Authority, that Authority;

(ib) in relation to the area of the Greater Manchester Combined Authority, the Greater Manchester Passenger Transport Executive;

(ic) in relation to the area of the Greater Merseyside Combined Authority, the Merseyside Passenger Transport Executive;

(id) in relation to the area of the Barnsley, Doncaster, Rotherham and Sheffield Combined Authority, the South Yorkshire Passenger Transport Executive;

(ie) in relation to the area of the North East Mayoral Combined Authority, the Tyne and Wear Passenger Transport Executive;

(ii) in Scotland, the Strathclyde Passenger Transport Executive

(2) The Executive for an integrated transport area , a combined authority area , a combined county authority area or 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 integrated transport area , a combined authority area , a combined county authority area or 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 the Authority for the area and, where the area is in England and Wales, with the councils of the districts comprised in the county which is coterminous with or includes that area.

(5) Each of the councils of the districts comprised in a county which is coterminous with or includes a passenger transport area an integrated transport area or a combined authority area a combined authority area or a combined county authority area and each of the following bodies namely, the Authority, the Executive and any subsidiary of the Executive, shall have power to enter into and carry out agreements with one another for the giving of assistance by that council to that body or, as the case may be, by that body to that council by way of making available to the assisted party any services or facilities provided by, or any property of, the assisting party.

(5A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) In relation to any area in Scotland or Wales, any reference to the Minister in any provision of this Part of this Act or Schedule 5 . . . thereto other than section 20(6) and (7) shall be construed as a reference to the Secretary of State.

(6A) This section applies in relation to each of the authorities within subsection (6B) as if—

(a) subsections (2) to (4) were omitted; and

(b) in subsection (5), the words “the Executive and any subsidiary of the Executive”. were omitted.

(6B) The authorities referred to in subsection (6A) are—

(a) the West Yorkshire Combined Authority;

(b) the West Midlands Combined Authority.

(6C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General powers of Executive

10

(1) Subject to the provisions of this Act, the Executive for a an integrated transport area , a combined authority area , a combined county authority area orpassenger transport area shall have power—

(i) to carry passengers by road within, to and from that area;

(ia) to carry passengers by railway—

(a) where that area is in England, between places in that area, between such places and any place in Great Britain which is outside that area, or between places in Great Britain which are outside that area, or

(b) where that area is in Wales or Scotland, between places in that area or between such places and any place outside that area but within the permitted distance, that is to say, the distance of twenty-five miles from the nearest point on the boundary of that area;

(ii) to carry passengers by any form of land transport other than road or railway or by any form of water transport (including in either case hovercraft) between places in that area or between such places and any place outside that area but within the permitted distance, that is to say, the distance of twenty-five miles from the nearest point on the boundary of that area;

(iii) so far as the Executive consider requisite—

(a) in connection with the exercise of their powers under paragraph (i) or (ia)(b) or (ii) of this subsection, or

(b) in order to avoid an interruption of existing services which would otherwise result from an exercise by them of any of their functions under this Part of this Act,

to carry passengers as mentioned in the said paragraph (i) or (ia)(b) or (ii) between places outside that area;

(iv) in any vehicle or vessel used for the carriage of passengers in pursuance of paragraph (i), (ia), (ii) or (iii) of this subsection, or in a trailer drawn by any vehicle so used, to carry also luggage and other goods;

(v) to store within that area goods which have been or are to be carried by the Executive, and, so far as any premises provided for the purposes of that or any other part of their business are not required for those purposes, to use them to provide facilities for the storage of other goods;

(vi) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(viza) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(via) with the approval of the Authority, to enter into and carry out agreements with any person who is the operator of, or who has an estate or interest in, or right over, a network, station or light maintenance depot or some part of a network, station or light maintenance depot, in connection with the building, replacement, redevelopment, refurbishment, repair, maintenance, operation or staffing of the network, station or light maintenance depot or any part thereof;

(vii) with the approval of the Authority, to make arrangements with any person providing passenger transport services by air for the provision of such services between places in that area or between such places and places outside that area, and to include in such arrangements provision for the making of payments to that person by the Executive;

(viii) to let passenger vehicles on hire with or without trailers for the carriage of goods;

to let passenger vehicles on hire (with or without trailers for the carriage of goods)—

(a) as part of, or in connection with, an agreement providing for service subsidies, to an operator of public passenger transport services within the meaning of section 9A;

(b) to a body holding a permit granted under section 19 of the Transport Act 1985 (permits in relation to the use of vehicles by educational and other bodies);

(viiia) to let locomotives and other rolling stock on hire to any person who is (within the meaning of Part I of the Railways Act 1993) the franchisee or the franchise operator under a franchise agreement to which the Executive is a party;

(viiiaa) where that area is in England, to let locomotives and other rolling stock on hire to a person not falling within paragraph (viiia) for or in connection with the provision of railway passenger services;

(viiib) where that area is in Wales or Scotland, to let locomotives and other rolling stock on hire to a person not falling within paragraph (viiia) above—

(a) for or in connection with the provision of railway passenger services within that area or within the permitted distance; or

(b) with the written consent of the Secretary of State, for or in connection with the provision of railway passenger services outside that area and beyond the permitted distance;

(viiic) with the approval of the Authority, to enter into and carry out agreements with the owner of any locomotive or other rolling stock concerning the persons to whom, or the terms on which, the locomotive or other rolling stock may be let on hire;

(ix) where an undertaking has been—

(a) transferred to the Executive under subsection (1) of section 17 of this Act; or

(b) wholly or partly resumed by the Executive under subsection (2)(b) of the said section 17; or

to carry on (but, in a case falling within sub-paragraph (c) of this paragraph, only with the approval of the Authority) any activities which the Executive would not otherwise have power to carry on but which were carried on by that undertaking immediately before the date of that transfer, the date of the disposal which gave rise to that resumption, or the date of that acquisition, as the case may be;

(x) in places where persons using the services and facilities provided by the Executive may require them, to provide both for those and other persons facilities for the purchase and consumption of food and drink, places of refreshment and such other amenities or facilities as it may appear to the Executive requisite or expedient to provide;

(xi) at any place where the Executive, in the exercise of their powers under paragraph (x) of this subsection, provide a car park, to repair motor vehicles for any persons, and to sell to any persons petrol, oil and spare parts and accessories for motor vehicles, whether or not those persons are using the car park;

(xii) to provide interchange facilities for the purpose of enabling passengers travelling by one means of transport to continue their journey by another;

(xiii) subject to section 15(2) of this Act and section 104(1) of the Transport Act 1985 (travel concessions on services provided by Passenger Transport Executives), to demand, take and recover or waive such charges for the services and facilities provided by them, and to make the use of those services and facilities subject to such terms and conditions, as they think fit, so, however, that, without prejudice to any other limitation on the power conferred by this paragraph subsisting by virtue of subsection (7) of this section, this paragraph shall not be construed as entitling the Executive to carry passengers by any form of land or water transport on terms or conditions which—

(a) purport, whether directly or indirectly, to exclude or limit their liability in respect of the death of, or bodily injury to, any passenger; or

(b) purport, whether directly or indirectly, to prescribe the time within which or the manner in which any such liability may be enforced;

(xiv) to construct, manufacture, produce, purchase, maintain and repair anything required for the purposes of their business;

(xv) to enter into and carry out agreements with any person for the carrying on by that person, whether as agent for the Executive or otherwise, of any activities which the Executive have power to carry on, and in particular for the provision of combined services for the through carriage of passengers or goods, for the quoting of through rates, and for the pooling of receipts or expenses, to include in any such agreement provision for the making of payments to that person by the Executive, and to enter into any such agreement notwithstanding that it involves the delegation of functions of the Executive under any enactment relating to part of their undertaking;

(xvi) with the approval of the Authority . . ., to make with any person with whom they have entered into an agreement under paragraph (xv) of this subsection for the carrying on by that person of any activities arrangements for the transfer from the Executive to that person in such manner and on such terms as may be provided for by the arrangements of any part of the undertaking or property of the Executive relevant to the carrying on of those activities;

(xvii) to acquire by agreement any undertaking or part of an undertaking if the assets comprised in that undertaking or part are wholly or mainly assets which the Executive require for the purposes of their business;

(xviii) for the purposes of the business of the Executive, to lend money to, or give a guarantee for the benefit of, any person for the purposes of an undertaking carried on by that person, or, where that person is a body corporate, by any undertaking carried on by a subsidiary of that body corporate;

(xix) for the purposes of the business of the Executive, to form, promote and assist, or join with any other person in forming, promoting and assisting, a company for carrying on any activities which the Executive have power to carry on, and, where that company is a subsidiary of the Executive, to transfer to that company any part of the undertaking or property of the Executive, and to subscribe for or acquire by agreement any securities of any body corporate;

(xx) to acquire land by agreement—

(a) for the purposes of their business; or

(b) with the approval of the Authority, for the purpose of adding it to and disposing of it with other contiguous land of theirs of which they propose to dispose;

(xxi) to develop their land for the purposes of their business in such manner as they may think fit;

(xxii) with the approval of the Authority—

(a) to develop for use by other persons any part of their land which is not required for the purposes of their business; or

(b) where the use of their land for the purposes of their business can be combined with its use for other purposes, to develop the land by constructing or adapting buildings thereon for use wholly or partly by other persons; and

(c) where they propose to develop any of their land as mentioned in sub-paragraph (a) or (b) of this paragraph, to acquire by agreement adjoining land for the purpose of developing it together with the other land,

with a view to selling or otherwise disposing of any right or interest in the land or, as the case may be, the buildings or any part of the buildings, after the development is carried out;

(xxiii) subject, in the case of a disposal of land, to the approval of the Authority, to dispose (whether absolutely or for a terms of years) of any property which in their opinion is not required to be retained by them for the purposes of their business;, and, in particular, to dispose of an interest in, or right over, any property which, subject to the interest or right, is retained by them;

(xxiv) to do anything for the purposes of advancing the skill of persons employed by them or the efficiency of their equipment or of the manner in which that equipment is operated, including the provision by the Executive, and the assistance of the provision by others, of facilities for training, education and research;

(xxv) to provide houses, hostels and other like accommodation for persons employed by them;

(xxvi) to make loans to persons employed by them for the purpose of assisting those persons to acquire housing accommodation, and to guarantee loans made by building societies and other bodies to such persons for that purpose;

(xxvii) to invest any sums which are not immediately required by them for the purposes of their business their money;

(xxviii) to turn their resources to account so far as not required for the purposes of their business;

(xxix) with the approval of the Authority, to promote or oppose any Bill in Parliament;

(xxx) to establish and administer pension schemes and pension funds in the interest of persons who are or have been employed by the Executive and to pay pensions to or in respect of such persons, or to enter into and carry into effect agreements or arrangements with any other person for securing or preserving pension rights for such persons;

(xxxi) to provide for any person technical advice or assistance, including research services, as respects any matter in which the Executive have skill or experience;

(xxxii) to do all other things which in their opinion are necessary to facilitate the proper carrying on of their business.

(2) For the purposes of paragraphs (v), (x), (xiv) and (xxiv) to (xxvi) of subsection (1) of this section, goods carried by, services and facilities provided by, things required for the purposes of the business of, and persons employed by, a subsidiary of the Executive or, for the purposes of the said paragraphs (v), (x) and (xiv), by a person providing bus services in the area under an agreement with the Executive . . . shall be deemed to be goods carried by, services and facilities provided by, things required for the purposes of the business of, or persons employed by, that Executive.

(2A) The reference in subsection (1)(viii) above to an agreement providing for service subsidies includes—

(a) an agreement for such subsidies under section 9A(4) above;

(b) provision included in a quality contract under section 124 of the Transport Act 2000 for the making of payments by the PTE (see subsection (5)(a) of that section).

(3) If the Authority for an integrated transport area , a combined authority area , a combined county authority area or a passenger transport area so request in writing, the Minister may authorise the Executive for that area to purchase compulsorily any land which the Executive or any wholly-owned subsidiary of theirs require for the purposes of their business, and the Acquisition of Land Act 1981 shall apply to the compulsory purchase.

(4) The power of purchasing land compulsorily in subsection (3) of this section shall include power to acquire an easement or other right in, over or under land by the creation of a new right; but this subsection shall not apply to an easement or other right in, over or under any land which would for the purposes of the Acquisition of Land Act 1981 form part of a common, open space or fuel or field garden allotment.

(5) The Ferries (Acquisition by Local Authorities) Act 1919 shall apply to the Executive for an integrated transport area , a combined authority area , a combined county authority area or a passenger transport area as if the Executive were within the meaning of that Act a local authority for that area.

(6) Part I of the Harbours, Piers and Ferries (Scotland) Act 1937 shall apply to the Executive for a passenger transport area as if that area were a region and the Executive were the council of that region.

(7) Each of the powers conferred by the foregoing provisions of this section shall be deemed to be in addition to, and not in derogation of, any other of them; but it is hereby declared that those provisions relate only to the capacity of the Executive for a passenger transport area as a statutory corporation and nothing in those provisions shall be construed as authorising the disregard by the Executive of any enactment or rule of law, or any requirement of this Part of this Act as to the approval of the Authority or the consent of the Minister for a particular exercise of any of those powers.

(8) It shall be the duty of an Executive who have a subsidiary to exercise their control over the subsidiary so as to ensure that the subsidiary does not engage in activities in which the Executive have no power to engage (including activities in which the Executive have no power to engage because any requisite consent or approval has not been obtained).

(9) In the application of subsections (3) and (4) of this section to Scotland there shall be substituted—

(a) for the references to the Acquisition of Land Act 1981 references to the Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947; and

(b) for the references to an easement references to a servitude;

and the reference in the said subsection (4) to a fuel or field garden allotment shall be omitted.

(10) This section applies to each of the authorities within subsection (11) as if—

(a) in subsection (1)—

(i) in paragraph (xxiii), the words “subject, in the case of a disposal of land, to the approval of the Authority” were omitted, and

(ii) any other reference to the approval of the Authority were omitted;

(b) in subsection (7), the words “the approval of the Authority or” were omitted.

(11) The authorities referred to in subsection (10) are—

(a) the West Yorkshire Combined Authority;

(b) the West Midlands Combined Authority.

Financial duty of Executive

11

(1) The Executive for a designated area shall so perform their functions under this Act as to ensure so far as practicable that the cumulative net balance of the consolidated revenue account of the Executive and any subsidiaries of theirs does not show a deficit at the end of any accounting period of the Executive after taking into account any amount which, at the date when that period ends, has been specified in a notice under section 13(2) of this Act in respect of expenditure incurred before that date but has not yet been received by the Executive.

(2) In respect of each accounting period of the Executive, the Executive shall charge to revenue account, and secure that any subsidiary of theirs so charges, all charges which are proper to be made to revenue account, including, in particular, proper provision for the depreciation or renewal of assets.

(3) The Executive may make charges to capital account representing interest on expenditure of a capital nature for any period which ends with or before the end of the accounting period in which the project or scheme to which the expenditure relates is completed.

(3A) Without prejudice to any power of the Executive to establish specific reserves, the Executive may establish and maintain a general reserve, and the Authority may give to the Executive directions as to any matter relating to the establishment or management of any such general reserve and the carrying of sums to the credit thereof, or the application thereof; but no part of the moneys comprised in such a general reserve shall be applied otherwise than for purposes of the Executive or a subsidiary of theirs.

(3B) Subsection (3A) applies to each of the authorities within subsection (3C) as if the words from “and the Authority” to “the application thereof” were omitted.

(3C) The authorities referred to in subsection (3B) are—

(a) the West Yorkshire Combined Authority;

(b) the West Midlands Combined Authority.

(4) The Executive shall from time to time, at such times, in such form and manner, and as respects such periods, as the Minister may after consultation with the Authority require, submit to the Minister a statement approved by the Authority of the Executive’s proposals for expenditure on capital account by the Executive and any subsidiaries of theirs; and—

(a) the Minister may from time to time by notice in writing to the Executive impose a limit on such expenditure by the Executive and their subsidiaries; and

(b) the Executive shall secure that any such expenditure is restricted within that limit.]

(5) If any of the councils of constituent areas so request the Executive in writing, the Executive shall send to that council a copy of any statement submitted by the Executive to the Minister under subsection (4) of this section.

Borrowing powers of Executive

12

(1) The provisions of this section shall have effect with respect to borrowing by the Executive for an integrated transport area , a combined authority area , a combined county authority area or a designated passenger transport area.

(2) The Executive may borrow temporarily, by way of overdraft or otherwise, from any person such sums as they may require for meeting their obligations and discharging their functions under this Part of this Act; but the Executive shall ensure that the aggregate of the amounts outstanding in respect of any temporary loans raised by thg Executive under this subsection or raised by any subsidiary of the Executive does not at any time exceed such amount as the Authority for the area may for the time being have approved.

(3) The Executive may, with the approval of the Authority for the area, borrow otherwise than by way of temporary loan from any person and in any manner such sums as the Executive may require for all or any of the following purposes, namely—

(a) for meeting any expenses properly chargeable to capital, being expenses incurred in connection with the provision or improvement of assets in connection with their business;

(b) for the provision of working capital;

(d) for the making of any payment which they are required by or under this Part of this Act to make by way of compensation. . .

(e) for subscribing for or acquiring securities of a body corporate otherwise than by way of investment;

(f) for the payment of interest charged to capital account under section 11(3) of this Act;

(g) to pay off any debt incurred by the Executive or any liability assumed by or transferred to the Executive in pursuance of this Part of this Act;

(h) for making any loan, or fulfilling any guarantee given, in pursuance of the powers conferred by section 10(1)(xviii) of this Act;

(j) for any purpose for which capital moneys are properly applicable, whether or not specified in the foregoing paragraphs of this subsection;

and the Executive shall exercise their control over any subsidiary of theirs so as to ensure that the subsidiary does not borrow otherwise than by way of temporary loan from any person without the approval of the Authority or for any purpose other than purposes of the subsidiary such as are specified in paragraphs (a) to (e) and (j) of this subsection or for paying off any debt incurred by the subsidiary.

(4) Each of the councils of constituent areas The Authority for the Executive’s area shall have power to lend money to the Executive but only if the rate of interest payable by the Executive to the Authority in respect of the loan is not less than that which would be payable by the Authority if they were to borrow the same sum on equivalent terms (disregarding any terms as to interest) from another person

(5) All moneys borrowed by the Executive shall be charged indifferently on all their revenues, and all securities created by the Executive shall rank equally without any priority; but nothing in this subsection shall—

(a) apply to any money borrowed by way of temporary loan without security; or

(b) affect any right to priority conferred by a security for any liability assumed by or transferred to the Executive in pursuance of this Act.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) The Executive shall be deemed to be a local authority for the purposes of—

(a) the enactments relating to loans by or borrowing from the Public Works Loan Commissioners;

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

(8) This section does not apply to—

(a) the West Yorkshire Combined Authority, or

(b) the West Midlands Combined Authority.

Power for Authority to precept for Executive

13

(1) The Authority shall have power to make grants to the Executive for any purpose.

(2) This section does not apply to—

(a) the West Yorkshire Combined Authority, or

(b) the West Midlands Combined Authority.

Accounts of Executive

14

(1) The Executive for an integrated transport area , a combined authority area , a combined county authority area or a passenger transport area shall—

(a) cause proper accounts and other records in relation to their business to be kept; . . .

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

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

(3) As soon as the accounts of the Executive for any accounting period have been audited in accordance with the Local Audit and Accountability Act 2014, they must send a copy of the statement of accounts prepared by them for that period under section 3 of that Act, together with a copy of the auditor's opinion on that statement—

(a) to the Secretary of State,

(b) to the Authority, and

(c) to each of the councils of the districts comprised in the county which is coterminous with or includes the Executive's area.

(4) This section does not apply to—

(a) the West Yorkshire Combined Authority, or

(b) the West Midlands Combined Authority.

Further functions of Authority

15

(1) The Executive for an integrated transport area , a combined authority area , a combined county authority area or a passenger transport area shall submit to the Authority and obtain the Authority’s approval of—

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

(b) such annual or other estimates of income or expenditure of the Executive and any subsidiaries of theirs as the Authority may require to be submitted to the Authority, and any major change proposed to be made in any of those estimates after their approval by the Authority;

(c) any proposal for expenditure by the Executive or any subsidiary of theirs, or by any other person in pursuance of arrangements with the Executive, which involves a substantial outlay on capital account.

(d) any agreement proposed to be entered into by the Executive ...;

(2) The Executive shall obtain the approval of the Authority—

(a) before making, or authorising or consenting to the making of, any alteration in the general level of charges for the transport services or facilities provided by the Executive or any subsidiary of theirs . . .; and

(b) subject to section 104(2) of the Transport Act 1985 (travel concessions on services provided by Passenger Transport Executives), for any proposal of the Executive for reducing or waiving those charges in a particular case or cases of a particular class;

. . .

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

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

(5) Any expenditure incurred by the Authority in performing their functions under this Part of this Act shall be defrayed by the Executive.

(6) Notwithstanding anything in this Part of this Act, nothing done by the Executive for an integrated transport area , a combined authority area , a combined county authority area or a passenger transport area shall be held to be unlawful on the ground that the approval of the Authority for that area to the doing of that thing was required by or under this Part of this Act and that it was done without obtaining that approval; but if it appears to the Authority that the Executive propose to do anything, or have done anything, without the approval of the Authority which in the opinion of the Authority requires that approval, the Authority may, after consultation with the Executive, give to the Executive such directions as appear to the Authority to be appropriate to secure so far as practicable the observance of the rights of the Authority in relation to the doing of that thing, and those directions may include directions to discontinue any specified activity or dispose of any specified assets; and the Executive shall comply with any such directions notwithstanding that they may result in the Executive having to dispose of any assets at a loss or incurring liability to other persons.

(7) Any approval or direction given by the Authority in pursuance of this Part of this Act shall be given in writing.

(8) This section does not apply to—

(a) the West Yorkshire Combined Authority, or

(b) the West Midlands Combined Authority.

Publication of annual report by Authority and Executive and prevention of improper conduct of subsidiary activities

16

(1) The Authority for any integrated transport area , combined authority area , combined county authority area or area designated by an order under section 9(1) of this Act passenger transport area shall as soon as practicable after the end of each accounting period of the Executive cause to be prepared jointly by the Authority and the Executive, and to be published in such manner as the Minister may directas the Authority consider appropriate a report on the exercise and performance by the Authority and the Executive of their respective functions during that period, including in particular any matters which by virtue of paragraph 15 of Part III of Schedule 5 to this Act are required by the order aforesaid by any order made, or having effect as if made, under section 9(3) of this Act to be dealt with in the report.

(2) Where the activities of the Executive or any subsidiary of theirs include the carrying on of the business of providing services for the carriage of passengers by road which do not, and if section 19(3)(a) of this Act had not passed would not, require authorisation by a road service licence other than local services, the report under this section for any accounting period shall include a statement of—

(a) the amount, as determined by the Executive, of the turnover of the Executive or subsidiary for that period in respect of that business;

(b) the extent or approximate extent (expressed in either case in monetary terms) to which, as so determined, the carrying on of that business contributed to, or restricted, the profit or loss of the Executive or subsidiary for that period before taxation;

(c) the method by which any determination for the purposes of paragraph (a) or (b) of this subsection was arrived at; and

(d) such further information, if any, relating to the carrying on by the Executive or subsidiary of that business as the Minister may from time to time direct.

(2A) In its application to each of the authorities within subsection (2B), subsection (1) has effect as if—

(a) the words “jointly by the Authority and the Executive” were omitted;

(b) “and the Executive” (in the second place) were omitted; ...

(d) the words from “including in particular” to the end of the subsection were omitted.

(2B) The authorities referred to in subsection (2A) are—

(a) the West Yorkshire Combined Authority, and

(b) the West Midlands Combined Authority.

(3) If, where the Executive or any subsidiary of theirs carry on such business as aforesaid, it appears at any time to the Minister that, having regard to all the circumstances appearing to the Minister to be relevant, the charges made for the services aforesaid provided by the Executive or subsidiary are unduly low in comparison with the cost of providing them, the Minister shall, after consultation with the Authority and with the Executive, either—

(a) direct the Executive to make, or, as the case may be, to ensure that the subsidiary makes, such modifications in their or its method of conducting that business as may be specified in the direction; or

(b) direct the Executive to discontinue, or, as the case may be, to ensure that the subsidiary discontinues, that business.

(4) The Minister may by order provide that subsections (2) and (3) of this section shall apply with or without modifications to any specified business of the Executive or any subsidiary of theirs which appears to the Minister to be of a character only subsidiary or incidental to the discharge of the Executive’s duty under section 9(3) of this Act and to be carried on on a substantial scale as those subsections apply to the business referred to in the said subsection (2).

(5) The Executive shall secure that no subsidiary of theirs carries on any business with respect to which the Minister has given the Executive a direction under subsection (3)(b) of this section

Reorganisation of passenger transport in Integrated Transport Areas or Passenger Transport Areas

Transfer to Executive of local authority transport undertakings

17

(1) In the case of each designated area the Minister shall by order make provision—

(a) with respect to any of the councils of constituent areas in the case of whom, on such date as may be appointed by the order, either—

(i) the council are carrying on, or are a member of some other body which is carrying on, an undertaking which either is at that date a road passenger transport, ferry or railway undertaking or was on the identifying date (that is to say, 8th December 1967 or a date five years before the date of the making of the order, whichever is the later) comprised in such an undertaking; or

(ii) any of the members of any such other body fall to be appointed by the council,

for the transfer on the date so appointed to the Executive from that council of all interests of that council in such fixed or movable property, and of all such rights and liabilities of that council, as may be determined by or under the order, being property, rights and liabilities which are on the date so appointed, or have at any time since the identifying date been, property used, rights enjoyed or liabilities incurred for or in connection with the purposes of that undertaking;

(b) for the transfer to the Executive (subject to paragraph 11(c) of Part III of Schedule 5 to this Act) of all property, rights and liabilities of, and for the dissolution of, any such other body as aforesaid which may be specified in the order, being a body in the case of which in consequence of provision made under paragraph (a) of this subsection no person other than the Executive or persons appointed by the Executive are entitled to be or become members;

(c) for the transfer to the Executive from any of the councils of constituent areas or any body specified for the purposes of paragraph (b) of this subsection of all such powers and duties as may be determined by or under the order, being powers or duties conferred or imposed on that council or body by or under any Act for the purposes of or in connection with any such undertaking as is referred to in paragraph (a) of this subsection;

(d) for the transfer to the service of the Executive of all such persons as may be determined by or under the order, being persons who immediately before the date appointed as aforesaid are employed by any of the councils of constituent areas or any body specified for the purposes of paragraph (b) of this subsection and who either are on that date or were on the identifying date aforesaid so employed in connection with any such undertaking as is referred to in paragraph (a) of this subsection;

(e) for the protection of the interests of persons transferred by the order to the service of the Executive.

(2) Any order under subsection (1) of this section may contain such supplementary, incidental and consequential provision as the Minister thinks necessary or expedient for the purposes of the order, and in particular, but without prejudice to the generality of the foregoing provisions of this subsection, may include provision—

(a) for the assumption by any council such as is mentioned in subsection (1)(a)(i) of this section and by the Executive of such liabilities to one another as may be determined by or under the order to be appropriate having regard to the financial arrangements of that council before the severance of the undertaking so mentioned from the other activities of that council;

(b) for—

(i) the exclusion from transfer to, or the disclaimer by, the Executive of any property acquired or contract entered into for the purposes of any undertaking affected by the order or any variation made in such a contract; or

(ii) the resumption by the Executive of any property, rights or liabilities formerly included in any such undertaking which have been disposed of before the transfer date; or

(iii) the resumption by the Executive of any interests in property, rights and liabilities of any of the councils of constituent areas, being property used, rights enjoyed or liabilities incurred for or in connection with the purposes of a road passenger transport, ferry or railway undertaking to which subsection (1)(a) of this section would have applied but for a disposal of the undertaking before the date appointed under the said subsection (1)(a), and whether before or after the making of the order,

if the acquisition of that property, the making of that contract or variation, or that disposal, took place after such date as may be specified in the order, not being earlier than the identifying date referred to in the said subsection (1)(a), and was not reasonably necessary or expedient for the purposes of the undertaking or was an act of unreasonable imprudence on the part of the person carrying on the undertaking;

(c) for the payment by such of the councils of constituent areas as are concerned of compensation to any person from whom any property, rights and liabilities are resumed by the Executive by virtue of paragraph (b)(ii) or (iii) of this subsection;

(d) for the settlement by a court or otherwise of any dispute or other matter arising in connection with the order;

(e) for securing that any undertaking affected by the order is properly carried on and maintained pending any relevant transfer under the order;

(f) for making in any Act, or in any instrument made under an Act, being an Act or instrument relating to, or to a class of undertakings which includes, any undertaking affected by the order, such modifications or repeals as may appear to the Minister to be required in consequence of any transfer under the order;

(g) for the making by the Executive to any council such as is mentioned in subsection (1)(a)(i) of this section of payments by way of contributions to the cost of any adjustments arising from the severance of the undertaking so mentioned from the other activities of that council.

(3) Section 1(1) to (5) of the Water Officers Compensation Act 1960 (which relates to compensation for loss of employment, etc., attributable to certain orders) shall apply to an order under subsection (1) of this section as it applies to the orders referred to in subsection (1) of that section but as if the definition of “the appropriate Minister” in subsection (4) of that section were omitted and for any other reference in that section to the appropriate Minister there were substituted a reference to the Minister; and the Minister shall exercise as respects any order under subsection (1) of this section the power to make regulations conferred by the said section 1 as applied by this subsection.

(4) Before making an order under subsection (1) of this section with respect to any designated area the Minister shall consult with any such councils of constituent areas as are referred to in paragraph (a), and any such other bodies as are referred to in paragraph (b), of that subsection; and those councils or bodies shall furnish the Minister with such information as he may reasonably require for the purpose of making the order.

(5) Subject to subsection (6) of this section, any property or interests in property, rights and liabilities for the transfer of which provision is made by an order under subsection (1) of this section shall on the date appointed for the purpose by the order be transferred, and by virtue of this Act vest, in accordance with the order.

(6) Schedule 4 to this Act shall apply to any transfer under subsection (5) of this section and that subsection shall have effect subject to the provisions of that Schedule; but—

(a) for the purposes of an order under subsection (1) of this section with respect to an area in Scotland or Wales, any reference in that Schedule to the Minister shall be construed as a reference to the Secretary of State;

(b) any order under the said subsection (1) may make modifications in that Schedule for the purposes of its application to a transfer effected by that order.

Planning of passenger transport services in designated areas

18

Transfer of control of bus services to Executive

19

(1) At any time after the Minister has received from the Authority for a designated area a copy of the statement prepared by that Authority and the Executive for that area under section 18(1) of this Act, the Minister may by order direct that this section shall apply to that area as from such date as may be appointed by the order.

(2) As from the date appointed in relation to any area under subsection (1) of this section, no person other than the Executive or a subsidiary of theirs shall provide an area bus service in that area except in pursuance of an agreement with the Executive or, in the case of an existing service within the meaning of Schedule 6 to this Act, with the consent of the Executive granted under that Schedule; but in the case of a service part only of which is operated as an area bus service in that area any provision with respect to the carriage of passengers other than those who are both taken up and set down in that area which is contained in any such agreement shall be of no effect if or so far as it is inconsistent with any condition for the time being attached to any road service licence under which the service is provided.

(3) Notwithstanding anything in Part III of the Act of 1960—

(a) no road service licence shall be required for the provision of any bus service operated wholly within an area to which this section applies ; and

(b) where such a licence is granted in respect of a bus service operated in part as an area bus service in such an area, no condition shall be attached to the licence with respect to the carriage of passengers who are both taken up and set down in that area;

and, on the day on which this section first applies to any particular designated area, any such licence in force immediately before that date, if or so far as that licence relates to the operation of an area bus service in that area, and any condition attached to such a licence, if or so far as that condition relates to the carriage of passengers who are both taken up and set down in that area, shall cease to have effect.

(4) If any person provides a bus service in contravention of subsection (2) of this section, he shall be liable on summary conviction to a fine not exceeding £200; but in England or Wales proceedings for an offence under this subsection shall not be instituted except by or on behalf of the Director of Public Prosecutions, or by or with the authority of the Executive for a designated area or a chief officer of police.

Special duty of certain Executives with respect to railway passenger services

20

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Without prejudice to their duty under section 9A(3) of this Act, it shall be the special duty of the Executive for an integrated transport area , a combined authority area or a passenger transport area ... —

(a) to ... keep under review, the railway passenger services provided by passenger service operators (within the meaning of Part I of the Railways Act 1993) for meeting the needs of persons travelling between places in that area or between such places and places outside that area but within the permitted distance ... and

(b) without prejudice to the general powers of the Executive under section 10 of this Act , to enter into such agreements with the Strategic Rail Authority or any wholly-owned subsidiary of the Strategic Rail Authority as the Passenger Transport Authority for that area may approve for securing the provision of such railway passenger services as the Passenger Transport Authority consider it appropriate to secure to meet any public transport requirements within that area.

(2A) For the purposes of subsection (2)(a) “permitted distance”, in relation to an integrated transport area, a combined authority area , a combined county authority area or a passenger transport area, means the distance of 25 miles from the nearest point on the boundary of that area.

(3) The Strategic Rail Authority shall furnish the Executive with any information which the Executive may reasonably require for the purposes of the discharge of their functions under subsection (2) of this section.

(4) Without prejudice to the general power of the Executive under section 10(1)(vi) of this Act, any agreement under this section may include provision for the making of payments by the Executive to the Strategic Rail Authority or a wholly-owned subsidiary of the Strategic Rail Authority in respect of the railway passenger services provided in pursuance of the agreement.

(5) Before entering into any agreement under this section, the Executive shall send a copy of the proposed agreement to the Minister; but a failure to comply with this subsection shall not affect the validity of the agreement.

(6) If any dispute arises between the Executive and the Strategic Rail Authority or any wholly-owned subsidiary of the Strategic Rail Authority in connection with the provisions of subsection (2) or (3) of this section, either of them may require the dispute to be referred to the Minister for determination, and any agreement under the said subsection (2) may include provision for any dispute in connection with the agreement to be so referred; and where any dispute is referred to the Minister under or by virtue of this subsection, then, subject to subsection (7) of this section, the Minister may give such directions to the Executive and the Strategic Rail Authority or the subsidiary with respect to the dispute as he thinks fit.

(7) Before giving any directions under subsection (6) of this section to the Executive for a passenger transport area in Scotland or Wales the Minister shall consult with the Secretary of State.

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Provisions as to functions of traffic commissioners in connection with designated areas

21

General

Provisions as to regulations and orders under Part II

22

(1) In relation to orders. . . made under this Part of this Act, the provisions of this section shall have effect in addition to the provisions of section 157 of this Act.

(2) Any order. . . made under this Part of this Act shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(2A) Subsections (1) and (2) of this section do not apply in relation to orders under section 10C of this Act (but see subsections (7) to (9) of that section).

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

Consents of, or directions by, Minister under Part II

23

(1) Section 28 of the Act of 1962 (which contains general provisions with respect to Ministerial consents under that Act) shall apply to a consent of the Minister under any provision of this Part of this Act to an action of the Executive for an integrated transport area , a combined authority area , a combined county authority area or a passenger transport area as it applies to a consent under any of the provisions mentioned in the said section 28 to an action of any of the Boards and, where that area is in Scotland or Wales, as if any reference therein to the Minister of Transport included a reference to the Secretary of State.

(2) It shall be the duty of any person to whom the Minister or an Authority for an integrated transport area , a combined authority area , a combined county authority area or a passenger transport area gives directions under this Part of this Act to give effect to those directions.

(3) Any direction given by the Minister or an Authority for an integrated transport area , a combined authority area , a combined county authority area or a passenger transport area under this Part of this Act shall be in writing.

Part III — Bus and Ferry Services

National Bus Company and Scottish Transport Group

Establishment and general duties of Bus Company and Scottish Group

24

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

General powers of Bus Company

25

Subject and without prejudice to the provisions of, or of any enactment applied by, sections 47 to 52 of this Act, the Bus Company shall have power—

(a) to carry passengers by road, whether in or outside England and Wales;

(b) to carry passengers by vessel or hovercraft where that carriage forms part of a passenger transport service which includes the carriage of passengers by road by the Company or a subsidiary of theirs or by some other person, whether or not as agent for the Company, in pursuance of an agreement with the Company;

(c) where any vehicle or vessel is used for the carriage of passengers in pursuance of paragraph (a) or (b) of this section, to carry also luggage or other goods in that vehicle or a trailer drawn thereby or in that vessel;

(d) to store goods which have been or are to be carried by the Company in pursuance of paragraph (c) of this section or by a subsidiary of the Company, and, so far as any premises provided for the purposes of that or any other part of their business are not required for those purposes, to use them to provide facilities for the storage of other goods;

(e) to let passenger vehicles for hire with or without trailers for the carriage of goods;

(f) to carry on business as travel agents;

(g) to enter into and carry out agreements with any person engaged in the provision of transport services, by whatever form of transport, for co-ordinating the activities of that person with those of the Bus Company, and in particular for the provision of combined services for the through carriage of passengers or goods, whether by the same or partly by one and partly by another form of transport, for the quoting of through rates and for the pooling of receipts or expenses;

(h) to join with any person engaged as mentioned in paragraph (g) of this section in forming, promoting and assisting a company for carrying on any activities in connection with such combined services as are so mentioned which the Bus Company or that person have power to carry on;

(j) with the consent of the Minister, to carry on any activities which the Company would not apart from this paragraph have power to carry on but which a subsidiary of the Company was carrying on immediately before it became such a subsidiary.

General powers of Scottish Group

26

(1) Subject and without prejudice to the provisions of, or of any enactment applied by, sections 47 to 52 of this Act, the Scottish Group shall have power—

(a) to carry passengers by road, subway or water or by hovercraft, whether in or outside Scotland;

(b) to carry goods by road or water or by hovercraft within, or to or from any place situated within, the Highland region, the islands areas of Orkney, Shetland and the Western Isles, the Argyll district and in the Cunninghame district the former burgh of Millport and the former districts of Arran and Cumbrae;

(c) where any vehicle or vessel is used for the carriage of passengers in pursuance of paragraph (a) of this subsection, to carry also luggage and other goods in that vehicle or a trailer drawn thereby or in that vessel;

(d) to consign goods on behalf of other persons;

(e) to store goods which have been or are to be carried by the Group or by a subsidiary of theirs and—

(i) so far as any premises provided by the Group for the purposes of that or any other part of their business are not required for those purposes, to use them to provide facilities for the storage of other goods;

(ii) with the consent of the Secretary of State to provide such facilities at any other premises;

(f) to carry on business as travel agents;

(g) to enter into and carry out agreements with any person engaged in the provision of transport services, by whatever form of transport, for co-ordinating the activities of that person with those of the Group, and in particular for the provision of combined services for the through carriage of passengers or goods, whether by the same or partly by one and partly by another form of transport, for the quoting of through rates, and for the pooling of receipts or expenses;

(h) to join with any person engaged as mentioned in paragraph (g) of this subsection in forming, promoting and assisting a company for carrying on any activities in connection with such combined services as are so mentioned which the Group or that person have power to carry on;

(j) either alone or together with any other person, to provide maintain and operate depots for the sorting of goods, with facilities for the reception, storage, weighing and handling of goods and for compliance with the requirements of the enactments relating to customs and excise;

(k) to let for hire any vehicle, vessel or other means of transport;

(l) to operate harbours;

(m) with the consent of the Secretary of State, to carry on any activities which the Group would not apart from this paragraph have power to carry on but which a subsidiary of the Group was carrying on immediately before it became such a subsidiary.

(2) The Scottish Group shall not be regarded as common carriers in respect of any of their activities concerned with the carriage of goods.

Financial provisions with respect to Bus Company and Scottish Group

27

(1) Subject and without prejudice to the provisions of section 41 of this Act, the following provisions of the Act of 1962, namely—

(a) section 18 (financial duty of Boards);

(b) section 19 (borrowing powers of Boards);

(d) section 21 (Treasury guarantees);

(e) section 24 (accounts),

shall apply to the Bus Company and to the Scottish Group as they apply to the Boards, except that any reference in those sections to the Minister shall, in relation to the Scottish Group, be construed as a reference to the Secretary of State.

(2) The Bus Company and] the Scottish Group shall each assume a commencing capital debt in accordance with the provisions of Schedule 2 to this Act.

(3) The aggregate amount outstanding in respect of—

(a) the principal of any money borrowed by the Bus Company or, as the case may be, the Scottish Group, under section 19 of the Act of 1962, and

(b) the commencing capital debt of that Company or, as the case may be,Group,

shall not exceed—

(i) for the Bus Company, the limit mentioned in subsection (4) of this section;

(ii) for the Scottish Group, £50 million.

(4) The limit referred to in subsection (3)(i) of this section is £250 million or such greater sum not exceeding £275 million as the Secretary of State may specify by order.

(5) No order shall be made under subsection (4) of this section unless a draft of the order has been laid before and approved by resolution of the House of Commons.

Transfer to Bus Company or Scottish Group of certain securities, rights and liabilities

28

(1) On the appointed day for the purposes of this subsection—

(a) the securities of the bodies listed in Schedule 7 to this Act, so far as beneficially owned on that day by the Holding Company or by any wholly-owned subsidiary of that Company, and

(b) any rights or liabilities on that day of that Company or subsidiary regarding the securities of any of those bodies, and

(d) the liability represented by any money owed on that day by that Company or subsidiary to any of those bodies, and

(e) any rights and liabilities on that day of that Company in connection with Tilling Association Limited, and

(f) any rights and liabilities of the Holding Company under any agreement such as is mentioned in paragraph 6 of Schedule 5 to the Act of 1962 so far as subsisting in England or Wales,

shall, subject to subsection (3) of this section, be transferred to, and by virtue of this Act vest in, the Bus Company.

(2) On the appointed day for the purposes of this subsection—

(a) the securities of the following bodies, namely—

(i) David MacBrayne Limited; and

(ii) Scottish Bus Group Limited,

so far as beneficially owned on that day by the Holding Company or by any wholly-owned subsidiary of that Company, and

(b) the securities of the following body, namely, the Caledonian Steam Packet Company Limited, so far as beneficially owned on that day by the Railways Board, and

(c) any rights or liabilities on that day of the Holding Company or that subsidiary thereof or, as the case may be, of that Board regarding the securities of any of those bodies, and

(d) the right to any money owed on that day to the Holding Company or subsidiary or, as the case may be, to that Board by any of those bodies, and

(e) the liability represented by any money owed on that day by the Holding Company or subsidiary or, as the case may be, by that Board to any of those bodies, and

(f) any rights and liabilities of the Holding Company under any agreement such as is mentioned in paragraph 6 of Schedule 5 to the Act of 1962 so far as subsisting in Scotland,

shall, subject to subsection (3) of this section, be transferred to, and by virtue of this Act vest in, the Scottish Group.

(3) Where any of the securities referred to in subsection (1) or (2) of this section are beneficially owned as mentioned in that subsection but held by a nominee, that subsection shall operate only to transfer the beneficial interest in the securities; and paragraphs (c) and (d) of the said subsection (1) andparagraphs (d) and (e) of the said subsection (2) shall not apply to money owed in the ordinary course of trading.

(4) The Minister may by order made not later than the appointed day for the purposes of subsection (1) of this section, andthe Minister and the Secretary of State acting jointly may by order made not later than the appointed day for the purposes of subsection (2) of this section, add to the said Schedule 7 or, as the case may be, to paragraph (a) or (b) of the said subsection (2), any body not for the time being listed therein if he is, or, as the case may be, they are, satisfied—

(a) that the activities of the body are similar to those of the bodies for the time being so listed, and

(b) that the Holding Company or a wholly-owned subsidiary thereof or, as the case may be, the Railways Board are for the time being the beneficial owners of any securities of that body.

(5) The rights and liabilities of the Holding Company under such agreements for the rendering of personal services by persons who immediately before the appointed day for the purposes of subsection (1) or, as the case may be, subsection (2) of this section, are employed by the Holding Company as may be determined in accordance with arrangements agreed between the Holding Company and the Bus Company or, as the case may be, between the Holding Company and the Scottish Group, or, in default of such agreement, in accordance with such arrangements as the Minister or, as the case may be, the Minister and the Secretary of State acting jointly may direct, shall on that day be transferred to, and by virtue of this Act vest in, the Bus Company or, as the case may be, the Scottish Group.

(6) Paragraph 2(3) and (4) of Schedule 4 to this Act shall apply to any transfer under subsection (5) of this section, and paragraphs 7 to 13 of that Schedule shall apply to any transfer under that subsection or under subsection (1) or (2) of this section; and in the application of any provision of that Schedule by virtue of this subsection to a transfer under the said subsection (2) any reference in that provision to the Minister shall be construed as a reference to the Minister and the Secretary of State acting jointly.

Transfer of certain property, rights and liabilities between Railways Board and Bus Company or Scottish Group

29

(1) Before the appointed day for the purposes of the relevant transfer referred to in subsection (2) of this section, the Railways Board shall take steps to the satisfaction of the Minister to separate from the remainder of their undertaking the parts thereof concerned respectively—

(a) with the provision of road passenger transport services within or to and from the city of Sheffield, the county borough of Halifax, the county borough of Huddersfield or the borough of Todmorden; and

(b) with the provision of shipping services in Scotland by the Caledonian Steam Packet Company Limited, and with the provision by the Board of the ferry service to and from Kyle of Lochalsh and Kyleakin;

and the Board shall from time to time furnish the Minister with such information as he may require with respect to the property and interests which the Board propose to treat as included in each respectively of those parts of their undertaking, and the Minister may give directions to the Board as to the property, rights and liabilities to be so treated.

(2) Subject to subsection (3) of this section, on the relevant appointed day for the purposes of this subsection there shall be transferred to, and by virtue of this Act vest in, the Bus Company andthe Scottish Group respectively, all the property, rights and liabilities comprised in the part of the Railways Board’s undertaking referred to in paragraph (a) or, as the case may be, paragraph (b) of subsection (1) of this section.

(3) Schedule 4 to this Act shall apply to any transfer under subsection (2) of this section, and that subsection shall have effect subject to the provisions of that Schedule; and in the application of any provision of that Schedule to a transfer affecting the Scottish Group, any reference in that provision to the Minister shall be construed as a reference to the Minister and the Secretary of State acting jointly.

(4) Notwithstanding anything in section 4 of the Act of 1962, as from the appointed day for the purposes of the transfer under subsection (2) of this section to the Bus Company the Railways Board shall not have power to carry passengers by road except as permitted by subsection (1)(a)(iii) of the said section 4.

(5) Subject to subsection (6) of this section—

(a) the Scottish Group and the Railways Board acting jointly may as occasion seems to them to require it make schemes for the transfer from one to another of the following bodies, namely, that Group, that Board and any wholly-owned subsidiary of that Group or Board, of any specified property, rights or liabilities, or of all property, rights or liabilities comprised in a specified part of their undertaking, being property, rights and liabilities held or subsisting for the purposes of or in connection with, or, as the case may be, a part of their undertaking concerned with, a transport service by water (including such a service by means of a hovercraft) which carries passengers and operates regularly between two or more points at least one of which is in Scotland;

(b) the Minister and the Secretary of State acting jointly may by order make any such provisions as aforesaid with respect to any of the bodies aforesaid.

(6) Subsections (3) to (7) of section 7 of this Act shall apply to any scheme, and subsections (3) to (6) of section 8 of this Act shall apply to any order, under subsection (5) of this section as they apply to a scheme under subsection (1)(b) of the said section 7 or, as the case may be, to an order under subsection (1)(b) of the said section 8 making any such provision as is mentioned in the said section 7(1)(b), but as if for the reference in subsection (6)(a) of the said section 8 to the Railways Board there were substituted a reference to the Scottish Group and the Railways Board.

Relaxation of control over certain bus services

Permit for certain bus services in lieu of road service licence

30

Abolition of special control over bus services provided by local authorities outside their areas

31

(1) So much of subsection (1) of section 101 of the Road Traffic Act 1930 as requires a local authority to obtain the consent of the appropriate traffic commissioners before running public service vehicles outside the district of the authority shall cease to have effect, and accordingly—

(a) in that subsection for the words from “on any road within their district”to the end shall be substituted the words “ on any road inside or outside their district ”; and

(b) section 102 of that Act (which contains procedural provisions with respect to consents under subsection (1) of the said section 101) shall cease to have effect.

(2) Any provision in a local Act or in any order under Part VI of the Local Government Act 1933, Part VI of the Local Government (Scotland) Act 1947, or Part II of the Local Government Act 1958—

(a) imposing any requirement corresponding to that which ceases to have effect by virtue of the foregoing subsection; or

(b) in relation to any such requirement, applying or making provision corresponding to the said section 102,

together with section 38(6) of the said Act of 1958 (which, in certain cases, requires orders under the said Part II to contain such provisions as aforesaid) shall cease to have effect.

Assistance for bus and ferry services

New bus grants

32

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

Grants towards duty charged on bus fuel

33

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

(3) So much of subsection (9) of the said section 92 as enables the Parliament of Northern Ireland to make laws for purposes similar to the purposes of the provisions of that section shall apply to those provisions as amended by subsection (1) of this section.

Assistance for rural bus or ferry services

34

(1) Any of the following councils, namely the council or any county,. . . or district in England or Wales, any county, town or district council in Scotland, and the Council of the Isles of Scilly, or any two or more of those councils acting jointly, may, on such conditions, if any, as they think fit, afford assistance to any other person, by way of grant, loan or both, for the purpose of securing the provision, improvement or continuance of any. . . ferry service if in the opinion of the council or councils in question that service is or will be for the benefit of persons residing in rural areas.

(1A) The Council of the Isles of Scilly may, on such conditions, if any, as they think fit, afford assistance to any other person, by way of grant, loan or both, for the purpose of securing the provision, improvement or continuance of any bus service if in the opinion of that Council that service is or will be for the benefit of persons residing in rural areas.

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

Further provision relating to public service vehicles

Provisions with respect to operation of public service vehicles

35

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

Power of local authority to run contract carriages

36

Power for local authorities to acquire or dispose of public service vehicle undertakings

37

(1) Without prejudice to any powers apart from this section, any local authority within the meaning of Part V of the Road Traffic Act 1930 who, under powers conferred by section 101(1) of that Act or by any local Act or order, are running public service vehicles may,. . .

(a) acquire by agreement the whole or any part of a public service vehicle undertaking carried on by any other person; or

(b) dispose of the whole or any part of the authority’s public service vehicle undertaking to any other person, whether by purchase or sale, by lease, or by exchange or, in Scotland, excambion.

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

Part IV — Further Provisions as to Boards, New Authorities and Transport Services

Railways Board

Composition of Railways Board and removal of requirement for regional boards

38

(1) In section 1(3) of the Act of 1962 (which relates to the composition of the Railways Board) for the words “shall consist of a chairman, a vice chairman, or two vice chairmen, and not more than sixteen nor less than ten other members" there shall be substituted the words “ shall consist of a chairman and not more than fifteen nor less than nine other members ”.

(2) The Minister may from time to time, if after consultation with the chairman of the said Board he thinks fit so to do, appoint one or more members of the Board to be deputy chairman or deputy chairmen, or vice chairman or vice chairmen, of the Board.

(3) A person appointed as deputy chairman or vice chairman of the said Board shall not by reason only of ceasing to be deputy chairman or vice chairman cease to be a member of the Board.

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

Grants for unremunerative passenger services

39

Grants pending elimination of surplus track and signalling equipment

40

Additional financial provisions with respect to Boards and new authorities

Financial provisions as to Boards and new authorities

41

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.