Legalize / United Kingdom / Public General Act

Public Passenger Vehicles Act 1981

Type Public General Act

Publication 1981-04-15

Last updated 2026-02-03

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

PART I — Preliminary

Definition and classification of public service vehicles

Definition of " public service vehicle "

1

(1) Subject to the provisions of this section, in this Act “public service vehicle” means a motor vehicle (other than a tramcar) which—

(a) being a vehicle adapted to carry more than eight passengers, is used for carrying passengers for hire or reward; or

(b) being a vehicle not so adapted, is used for carrying passengers for hire or reward at separate fares in the course of a business of carrying passengers.

(2) For the purposes of subsection (1) above a vehicle “is used” as mentioned in paragraph (a) or (b) of that subsection if it is being so used or if it has been used as mentioned in that paragraph and that use has not been permanently discontinued.

(3) A vehicle carrying passengers at separate fares in the course of a business of carrying passengers, but doing so in circumstances in which the conditions set out in Part I, . . . or III of Schedule 1 to this Act are fulfilled, shall be treated as not being a public service vehicle unless it is adapted to carry more than eight passengers.

(4) For the purposes of this section a journey made by a vehicle in the course of which one or more passengers are carried at separate fares shall not be treated as made in the course of a business of carrying passengers if—

(a) the fare or aggregate of the fares paid in respect of the journey does not exceed the amount of the running costs of the vehicle for the journey; and

(b) the arrangements for the payment of fares by the passenger or passengers so carried were made before the journey began;

and for the purposes of paragraph (a) above the running costs of a vehicle for a journey shall be taken to include an appropriate amount in respect of depreciation and general wear.

(5) For the purposes of this section, . . . and Schedule 1 to this Act—

(a) a vehicle is to be treated as carrying passengers for hire or reward if payment is made for, or for matters which include, the carrying of passengers, irrespective of the person to whom the payment is made and, in the case of a transaction effected by or on behalf of a member of any association of persons (whether incorporated or not) on the one hand and the association or another member thereof on the other hand, notwithstanding any rule of law as to such transactions;

(b) a payment made for the carrying of a passenger shall be treated as a fare notwithstanding that it is made in consideration of other matters in addition to the journey and irrespective of the person by or to whom it is made;

(c) a payment shall be treated as made for the carrying of a passenger if made in consideration of a person’s being given a right to be carried, whether for one or more journeys and whether or not the right is exercised.

(6) Where a fare is paid for the carriage of a passenger on a journey by air, no part of that fare shall be treated for the purposes of subsection (5) above as paid in consideration of the carriage of the passenger by road by reason of the fact that, in case of mechanical failure, bad weather or other circumstances outside the operator’s control, part of that journey may be made by road.

Classification of public service vehicles as stage, express or contract carriages

2

Traffic Areas and Traffic commissioners

Traffic areas

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(1) For the purposes of this Act Great Britain shall be divided into the Metropolitan, Northern, Yorkshire, North-Western, West Midland, East Midland, Eastern, South Wales, Western, South-Eastern and Scottish Traffic Areas.

(2) The Secretry of State may from time to time by order vary the provisions of this Act constituting traffic areas, either by altering the limits of an existing traffic area or by increasing or reducing the number of traffic areas or otherwise as he may think fit.

(2A) The power to make an order under subsection (2) above includes power to make—

(a) such incidental, consequential, supplemental or transitional provision, and

(b) such savings,

as the Secretary of State may consider necessary or expedient for the purpose of, or in consequence of, or for giving full effect to, any order under that subsection for varying the number or limits of traffic areas in England and Wales.

(2B) The power conferred by subsection (2A) above includes power to amend or modify any provision of this Act or any other enactment (whenever passed or made) for the purpose of making any such provision or savings.

(2C) The powers conferred by subsections (2A) and (2B) above are without prejudice to what may be done under subsection (3) below.

(3) An order under this section for varying the number or limits of traffic areas may contain such consequential and incidental provisions as appear to the Secretary of State to be necessary or expedient in consequence of the variations of areas to be affected by the order, including provisions—

(a) as to the effect of licences previously issued, and consents previously given, by a traffic commissioner;

(b) as to the effect of applications for licences or consents previously made to a traffic commissioner;

(d) as to the recovery of any sums due to a traffic commissioner,

in relation to any traffic area abolished or changed.

(4) The power to make orders conferred by this section shall be exercisable by statutory instrument which shall be laid before Parliament after being made, and an order under this section shall not have effect unless and until it has been approved by a resolution of each House of Parliament.

Traffic commissioners

4

(1) For the purposes of this Act there shall be—

(a) such number of commissioners for England and Wales as the Secretary of State may consider appropriate; and

(b) a single commissioner for the Scottish Traffic Area (the “Scottish traffic commissioner”).

(2) The commissioners shall be appointed by the Secretary of State and shall be known as traffic commissioners.

(3) A traffic commissioner 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.

(3A) A traffic commissioner for England and Wales—

(a) may exercise the functions of a traffic commissioner in any traffic area in England and Wales; and

(b) may exercise in relation to the Scottish Traffic Area any functions of a traffic commissioner that relate to reserved matters within the meaning of the Scotland Act 1998.

(3B) The Scottish traffic commissioner—

(a) is to exercise the functions of a traffic commissioner in relation to the Scottish Traffic Area; and

(b) may exercise in relation to any traffic area in England and Wales any functions of a traffic commissioner that relate to reserved matters within the meaning of the Scotland Act 1998.

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

(a) act under the general directions of, and shall have regard to any guidance given by, the senior traffic commissioner; and

(b) vacate his office on attaining the age of 75, but otherwise hold office during Her Majesty’s pleasure.

(5) Where the Secretary of State proposes to appoint a person to be a traffic commissioner 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.

Appointment and terms of service of traffic commissioners

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(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 a traffic commissioner 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 the traffic commissioner considers may be affected by the information; and

(ii) if the traffic commissioner considers that the information may affect Greater London, to Transport for London; 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 council constituted under section 2 of the Local Government etc. (Scotland) Act 1994.

PART II — General Provisions Relating to Public Service Vehicles

Fitness of public service vehicles

Certificate of initial fitness (or equivalent) required for use as public service vehicles

6

(1) Subject to subsection (1ZA) below, A public service vehicle adapted to carry more than eight passengers shall not be used on a road unless—

(a) an examiner appointed under section 66A of the Road Traffic Act 1988 or an authorised inspector has issued a certificate (in this Act referred to as a “certificate of initial fitness”) that the prescribed conditions as to fitness are fulfilled in respect of the vehicle; or

(b) a certificate under section 10 of this Act has been issued in respect of the vehicle; or

(d) one of the following certificates has effect with respect to the vehicle―

(ai) a GB certificate of conformity;

(i) a relevant certificate of conformity;

(ii) a ... small series certificate of conformity;

(iii) an individual approval certificate.

(1ZA) In the case of a public service vehicle to which subsection (1ZB) below applies, subsection (1) above has effect as if paragraphs (a) and (b) of that subsection were omitted.

(1ZB) This subsection applies to any public service vehicle which, by virtue of regulation 21 of the Approval Regulations, may not—

(a) be granted a first licence under section 21 of the Vehicle Excise and Registration Act 1994, or

(b) be registered before the issue of a first licence under that section,

unless one of the certificates mentioned in paragraph (d) of subsection (1) above has effect with respect to the vehicle.

(1A) Without prejudice to the powers of the Secretary of State under section 7 of this Act in relation to the exercise by certifying officers of their functions, regulations may make provision with respect to the examination of vehicles for the purposes of subsection (1)(a) above by or under the direction of authorised inspectors and the issue or refusal of certificates of initial fitness by such inspectors on any such examinations.

(2) Subject to section 68(3) 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 4 on the standard scale.

(3) In this section—

“Approval Regulations” means the Road Vehicles (Approval) Regulations 2020;

“GB certificate of conformity” means—a GB certificate of conformity within the meaning of Article 3(5B) of the Type Approval Regulation, ora certificate of conformity issued under section 57(1) of the Road Traffic Act 1988;

“individual approval certificate” means a certificate issued under regulation 18(10) of the Approval Regulations;

“relevant certificate of conformity” means—a UK (NI) certificate of conformity, as defined in Article 3(5C) of the Type Approval Regulation, orin a case where the vehicle—was in the United Kingdom before IP completion day;is a qualifying Northern Ireland good, within the meaning of section 47 of the United Kingdom Internal Market Act 2020; oris approved as a type vehicle under section 55(1A) or (1D) of the Road Traffic Act 1988,an EU certificate of conformity, as defined in Article 3(5A) of the Type Approval Regulation;

“small series certificate of conformity” means a certificate issued under regulation 16(7) of the Approval Regulations;

“Type Approval Regulation” means Regulation (EU) 2018/858 of the European Parliament and of the Council of 30 May 2018 on the approval and market surveillance of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles.

Certifying officers and public service vehicle examiners

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Powers of, and facilities for, inspection of public service vehicles

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—(1)

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

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

(3) The Secretary of State may—

(a) provide and maintain stations where inspections of public service vehicles . . . may be carried out;

(b) designate premises as stations where such inspections may be carried out; and

and in this Act “official PSV testing station” means a station provided, or any premises for the time being designated, under this subsection.

Power to prohibit driving of unfit public service vehicles

9

Approval of type vehicle and effect thereof

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(1) Where the Secretary of State is satisfied in respect of one vehicle of a particular type that the prescribed conditions as to fitness are fulfilled in respect of the vehicle he may, on payment of the prescribed fee, approve the vehicle as a type vehicle.

(2) Where a type vehicle has been approved under this section and a declaration in the prescribed form has been made by a person authorised by the Secretary of State in that behalf that any other vehicle conforms in design, construction and equipment with the type vehicle, an examiner appointed under section 66A of the Road Traffic Act 1988 may, after examining if he thinks fit that other vehicle, issue a certificate in the prescribed form that the vehicle conforms to the type vehicle.

(3) The Secretary of State may at any time withdraw his approval of a type vehicle and thereafter no certificate that any other vehicle conforms to the type vehicle shall be issued; but as regards any such certificate previously issued, the withdrawal of the approval shall not affect the operation of that certificate for the purposes of section 6 of this Act.

Modification of section 6 in relation to experimental vehicles

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(1) Where it appears to the Secretary of State expedient to do so for the purpose of the making of tests or trials of a vehicle or its equipment, he may by order made in respect of that vehicle for the purposes of section 6 of this Act dispense with such of the prescribed conditions as to fitness referred to in subsection (1)(a) of that section as are specified in the order.

(2) While such an order is in force in respect of a vehicle, section 6 of this Act shall have effect in relation to the vehicle as if the prescribed conditions as to fitness referred to in subsection (1)(a) of that section did not include such of those conditions as are dispensed with by the order.

(3) An order under this section shall specify the period for which it is to continue in force, and may contain, or authorise the imposition of, requirements, restrictions or prohibitions relating to the construction, equipment or use of the vehicle to which the order relates.

(4) Where an order under this section in respect of a vehicle is revoked or otherwise ceases to have effect, any certificate of initial fitness issued under section 6 of this Act in respect of the vehicle while the order was in force shall, for the purposes of that section as regards any use of the vehicle after the order has ceased to have effect, be deemed never to have been issued.

Public service vehicle operators’ licences

PSV operators' licences

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(1) A public service vehicle shall not be used on a road for carrying passengers for hire or reward except under a PSV operator’s licence granted in accordance with the following provisions of this Part of this Act.

(1A) Subsection (1) applies in spite of Article 1.4(b) and (c) of the 2009 Regulation (exemptions unless otherwise provided in national law for certain undertakings engaged in road passenger transport services and for slow vehicles), but is subject to section 46 of this Act and section 18 of the Transport Act 1985

(2) The authority having power to grant a PSV operator’s licence is a traffic commissioner.

(3) A person may hold two or more PSV operator’s licences but shall not at the same time hold more than one such licence in relation to the same traffic area.

(3A) Subject to the provisions of this Part of this Act, a PSV operator’s licence authorises the holder to use anywhere in Great Britain a vehicle which has as its operating centre an operating centre specified in the licence.

(4) An application for a PSV operator’s licence shall be made in such a form as a traffic commissioner may require, and an applicant shall give the traffic commissioner dealing with the application such information as he or another traffic commissioner may reasonably require for disposing of the application.

(5) Subject to section 68(3) 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 4 on the standard scale.

Classification of licences

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(1) A PSV operator’s licence may be either a standard licence or a restricted licence.

(2) A standard licence authorises the use of any description of public service vehicle and may authorise use either—

(a) on both national and international operations; or

(b) on national operations only.

(3) A restricted licence authorises the use (whether on national or international operations) of—

(a) public service vehicles not adapted to carry more than eight passengers; and

(b) public service vehicles not adapted to carry more than sixteen passengers when used—

(ii) otherwise than in the course of a business of carrying passengers; or

(ii) by a person whose main occupation is not the operation of public service vehicles adapted to carry more than eight passengers.

(4) For the purposes of subsection (3)(b)(i) above, a vehicle used for carrying passengers by a local or public authority shall not be regarded as used in the course of a business of carrying passengers unless it is used by the public service vehicle undertaking of that authority.

Grant of licences

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(1) On an application for a standard licence a traffic commissioner must consider whether the requirements of sections 14ZA and 14ZC are satisfied.

(2) On an application for a restricted licence a traffic commissioner must consider whether the requirements of sections 14ZB and 14ZC are satisfied.

(3) If on an application for a PSV operator’s licence the traffic commissioner determines that the relevant requirements mentioned in subsection (1) or (2) are satisfied the commissioner must, subject to section 16 (conditions attached to licences), grant the licence in accordance with the application.

Duration of licences

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(1) There shall be specified in every PSV operator’s licence the date on which the licence is to come into force .

(2) Subject to its revocation or other termination under any provision of this Act or another statutory provision, a PSV operator’s licence shall continue in force indefinitely.

(3) If the holder of a PSV operator’s licence requests a traffic commissioner to terminate it at any time, he or another traffic commissioner must, subject to subsection (4) below, comply with the request.

(4) A traffic commissioner may refuse to comply with such a request if he or another traffic commissioner is considering taking action in respect of the licence under section 17(1) or (2) of this Act.

Conditions attached to licences

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(1) Subject to subsection (1A) below and section 12(7) of the Transport Act 1985 A traffic commissioner on granting a PSV operator’s licence shall attach to it one or more conditions specifying the maximum number of vehicles (being vehicles having their operating centre in the traffic area to which that licence relates ) which the holder of the licence may at any one time use under the licence.

(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.

(2) Conditions attached under subsection (1) above to a PSV operator’s licence may specify different maximum numbers for different descriptions of vehicle.

(3) A traffic commissioner may attach to a PSV operator’s licence (whether at the time when the licence is granted or at any later time) such conditions or additional conditions as he thinks fit for restricting or regulating the use of vehicles under the licence, being conditions of any prescribed description.

(4) Without prejudice to the generality of the power to prescribe descriptions of conditions for the purposes of subsection (3) above, the descriptions which may be so prescribed include conditions for regulating the places at which vehicles being used under a PSV operator’s licence may stop to take up or set down passengers.

(5) At any time while a PSV operator’s licence is in force, a traffic commissioner may vary the licence by—

(a) altering in such manner as he thinks fit any condition attached under subsection (3) above to the licence; or

(b) removing any condition so attached to the licence.

(6) On the application of the holder of a PSV operator’s licence, a traffic commissioner may at any time while it is in force—

(a) vary the conditions attached under subsection (1) above to the licence; . . .

(b) exercise his powers (whether of alteration or removal) under subsection (5) above; or

and a person making an application under this subsection shall give to the traffic commissioner dealing with the application such information as he or another traffic commissioner may reasonably require for the discharge of duties of a traffic commissioner in relation to the application.

(6A) In considering whether to grant an application under subsection (6) above, a traffic commissioner may take into account any undertakings given by the applicant (or procured by him to be given) for the purposes of the application, and may assume that those undertakings will be fulfilled.

(6B) In any case where a traffic commissioner grants an application under subsection (6) above, any undertakings taken into account by him under subsection (6A) above that he considers to be material to the granting of the application shall be recorded in the licence as varied.

(7) Subject to section 68(3) of this Act, if a condition attached to a PSV operator’s 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.

(8) Compliance with any condition attached to a PSV operator’s licence . . . (other than a condition so attached under subsection (1A) above) may be temporarily dispensed with by a traffic commissioner if he is satisfied 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.

(9) It is hereby declared that the conditions attached under subsection (1) or (1A) above to a PSV operator’s licence granted in relation to a traffic area do not affect the use by the holder of the licence of a vehicle—

(a) under a PSV operator’s licence granted to the holder of that licence in relation to any other traffic area;

(b) in circumstances such that another person falls to be treated as the operator of the vehicle (for example, by virtue of regulations under section 81(1)(a) of this Act).

Revocation, suspension etc. of licences

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(1) A traffic commissioner must revoke a standard licence if it appears to the commissioner at any time that—

(a) the holder no longer satisfies the requirements of section 14ZA(2), or

(b) the transport manager designated in accordance with Article 4 of the 2009 Regulation no longer satisfies the requirements of section 14ZA(3).

(1A) Before revoking a standard licence under subsection (1), the traffic commissioner may serve on the holder a notice setting a time limit, in accordance with Article 13.1 of the 2009 Regulation, for the holder to rectify the situation.

(1B) If the holder rectifies the situation within the time limit set under subsection (1A), the traffic commissioner must not revoke the licence

(2) Without prejudice to subsection (1) above, a traffic commissioner may, on any of the grounds specified in subsection (3) below, at any time—

(a) revoke a PSV operator’s licence;

(b) suspend such a licence for such period as he directs;

(d) vary any condition attached under subsection (1) of section 16 of this Act to such a licence, or attach to such a licence (whether in addition to or in place of any existing condition so attached to it) any such condition as is mentioned in that subsection.

(3) The grounds for action under subsection (2) above are—

(a) that the holder of the licence made or procured to be made for the purposes of his application for the licence, or for the purposes of an application for a variation of the licence, a statement of fact which (whether to his knowledge or not) was false, or a statement of ... expectation which has not been fulfilled;

(aa) that any undertaking recorded in the licence has not been fulfilled;

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

(c) that a prohibition under section 69 of the Road Traffic Act 1988 has been imposed with respect to a vehicle owned or operated by the holder of the licence, or that the holder of the licence has been convicted of an offence under section 71(1)(a) or (b) of that Act arising out of the contravention of such a prohibition;

(d) in the case of a restricted licence, that the holder no longer satisfies the requirements of section 14ZB;

(e) that there has been since the licence was granted or varied a material change in any of the circumstances of the holder of the licence which were relevant to the grant or variation of his licence.

(f) the licence is one in relation to which a direction given by a traffic commissioner under section 28(4) of the Transport Act 1985 (power when disqualifying a former licence holder to direct that certain other PSV operators’ licences should be liable to be revoked, suspended, etc.) has effect

(4) A traffic commissioner shall not take any action under subsection (1) or (2) above in respect of any licence without first holding an inquiry if the holder of the licence requests that an inquiry be held.

(5) Where a traffic commissioner decides to revoke a licence under this section, he may direct that the revocation shall not take effect for such period as appears to him reasonably required to enable the business carried on under the licence to be transferred to another person duly licensed to carry it on.

(5A) Where a licence is suspended under this section, it remains in force during the time of its suspension subject to the limitation that no vehicles are authorised to be used under it.

(5B) Where a licence is suspended under this section, a traffic commissioner may at any time—

(a) cancel the suspension; or

(b) with the consent of the holder of the licence, vary the period for which it is suspended.

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

Duty to exhibit operator's disc

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(1) Where a vehicle is being used in circumstances such that a PSV operator’s licence is required, there shall be fixed and exhibited on the vehicle in the prescribed manner an operator’s disc issued under this section showing particulars of the operator of the vehicle and of the PSV operator’s licence under which the vehicle is being used.

(2) A traffic commissioner on granting a PSV operator’s licence shall supply the person to whom the licence is granted—

(a) with a number of operators’ discs equal to the maximum number of vehicles that he may use under the licence in accordance with the condition or conditions attached to the licence under section 16(1) of this Act; or

(b) with such lesser number of operators’ discs as he may request.

(2A) Where, in the case of any PSV operator’s licence, the maximum number referred to in subsection (2)(a) above is increased on the variation of one or more of the conditions there referred to, the traffic commissioner on making the variation shall supply the holder of the licence—

(a) with such number of additional operators’ discs as will bring the total number of operators’ discs held by him in respect of the licence to that maximum number, or

(b) with such lesser number of additional operators’ discs as he may request.

(2B) Where the number of operators’ discs currently held in respect of a PSV operator’s licence is less than the maximum number referred to in subsection (2)(a) above, a traffic commissioner shall on the application of the holder of the licence supply him with such number of additional operators’ discs as is mentioned in subsection (2A)(a) or (b) above.

(2C) Where, in accordance with regulations under subsection (3)(aa) below, all the operators’ discs held in respect of a PSV operator’s licence expire at the same time, a traffic commissioner shall supply the holder of the licence with a number of new operators’ discs equal to the number of discs that have expired.

(3) Regulations may make provision—

(a) as to the form of operators’ discs and the particulars to be shown on them;

(aa) as to the expiry of operators’ discs;

(b) with respect to the custody and production of operators’ discs;

(d) for the return of operators’ discs on their expiry or otherwise ceasing to have effect,on the revocation or on termination of a PSV operator’s licence or in the event of a variation of one or more conditions attached to a licence under section 16(1) of this Act having the effect of reducing the maximum number of vehicles which may be used under the licence.

(e) for the voluntary return of operators’ discs by the holder of a PSV operator’s licence.

(4) Subject to section 68(3) 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.

Duty to inform traffic commissioners of relevant convictions etc.

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(1) A person who has applied for a PSV operator’s licence shall forthwith notify the traffic commissioner dealing with the application if, in the interval between the making of the application and the date on which it is disposed of, a relevant conviction occurs of the applicant, or any employee or agent of his, or of any person proposed to be engaged as transport manager whose repute and competence are relied on in connection with the application.

(2) It shall be the duty of the holder of a PSV operator’s licence to give notice in writing to a traffic commissioner of—

(a) any relevant conviction of the holder; and

(b) any relevant conviction of any officer, employee or agent of the holder for an offence committed in the course of the holder’s road passenger transport business,

and to do so within 28 days of the conviction in the case of a conviction of the holder or his transport manager and within 28 days of the conviction coming to the holder’s knowledge in any other case.

(2A) For the purposes of subsections (1) and (2) above the issue to a person of a fixed penalty notice or conditional offer under Part 3 of the Road Traffic Offenders Act 1988 in respect of an offence prescribed for the purposes of this Act is to be treated as if it were a relevant conviction of him.

(3) It shall be the duty of the holder of a PSV operator’s licence within 28 days of the occurrence of—

(a) the bankruptcy or liquidation of the holder, or the sequestration of his estate or the entry into administration of the holder or the appointment of a receiver, manager or trustee of his road passenger transport business; or

(aa) the making of a debt relief order in respect of the holder (under Part 7A of the Insolvency Act 1986); or

(b) any change in the identity of the transport manager of the holder’s road passenger transport business,

to give notice in writing of that event to a traffic commissioner.

(4) On granting or varying a PSV operator’s licence, or at any time after the grant or variation of such a licence, a traffic commissioner may require the holder of the licence to inform a traffic commissioner forthwith, or within a specified period, of any specified material change in any of the holder’s circumstances which were relevant to the grant or variation of the licence.

(4A) In subsection (4) “specified” means specified by the traffic commissioner imposing the requirement to inform.

(5) Subject to section 68(1) of this Act, a person who fails to comply with subsection (1), (2) or (3) above or with any requirement under subsection (4) above shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Duty to give traffic commissioners information about vehicles

20

(1) It shall be the duty of the holder of a PSV operator’s licence, on the happening to any public service vehicle owned by him of any failure or damage of a nature calculated to affect the safety of occupants of the public service vehicle or of persons using the road, to report the matter as soon as is practicable to the Secretary of State in accordance with regulations made by virtue of subsection (2A) below.

(2) It shall be the duty of the holder of a PSV operator’s licence, on any alteration otherwise than by replacement of parts being made in the structure or fixed equipment of any public service vehicle owned by him, to give notice of the alteration as soon as is practicable to the Secretary of State in accordance with regulations made by virtue of subsection (2A) below.

(2A) Regulations may make provision—

(a) for any report or notice required under subsection (1) or (2) above to be made or given to the Secretary of State or to the prescribed testing authority;

(b) for requiring a public service vehicle to be submitted for examination in the event of any such failure or damage as is mentioned in subsection (1) above or any such alteration as is mentioned in subsection (2) above; and

(c) for the examinations to be carried out under the regulations and, in particular, for authorising any such examination to be carried out by or under the direction of a an examiner appointed under section 66A of the Road Traffic Act 1988 or an authorised inspector.

(3) A traffic commissioner may—

(a) require the holder of a PSV operator’s licence to supply him or another traffic commissioner forthwith or within a specified time with such information as he may reasonably require about the public service vehicles owned by the holder and normally kept at an operating centre within the traffic area to which the licence relates, and to keep up to date information supplied by the holder under this paragraph; or

(b) require the holder or former holder of a PSV operator’s licence to supply him or another traffic commissioner forthwith or within a specified time with such information as he may reasonably require about the public service vehicles owned by the holder or former holder at any material time specified by him which were at that time normally kept at an operating centre within the traffic area to which the licence relates.

In this subsection “material time” means a time when the PSV operator’s licence in question was in force.

(4) Subject to section 68(1) of this Act, a person who fails to comply with the provisions of subsection (1) or (2) above or with any requirement under subsection (3) above shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(5) A person who in purporting to comply with any requirement under subsection (3) above supplies any information which he knows to be false or does not believe to be true shall be liable on summary conviction to a fine not exceeding level 4 on the standard scale.

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

Certificates of qualification

21

(1) A person who wishes to do either of the following things in a member State or in Northern Ireland, namely to carry on a road passenger transport business or to be the transport manager of such a business, may apply to a traffic commissioner for a certificate as to the applicant’s repute and professional competence and, where relevant, his financial standing.

(2) A person applying for a certificate under subsection (1) above shall give to the traffic commissioner dealing with the application such information as he or another traffic commissioner may reasonably require for the discharge of duties of a traffic commissioner in relation to the application.

(3) The traffic commissioner dealing with an application under subsection (1) above shall certify such matters relating to the applicant as—

(a) he is satisfied he may properly certify, and

(b) appear to the commissioner to be of assistance to the applicant in satisfying the requirements of the law of the ... member State in which he wishes to carry on business or to work or, as the case may be, the requirements of the law of Northern Ireland.

Drivers’ licences

Drivers' licences

22

(1) A person—

(a) shall not drive a public service vehicle on a road unless he is licensed for the purpose under this section; and

(b) shall not employ a person who is not so licensed for the purpose to drive a public service vehicle on a road.

Notwithstanding section 1(1) of this Act, in this section and in sections 23 to 26 of this Act “public service vehicle” shall be construed as meaning a public service vehicle being used on a road for carrying passengers for hire or reward.

(2) The authority having power to grant under this section a licence to a person to drive a public service vehicle shall be— the traffic commissioner for the traffic area in which that person resides at the time when he applies for a licence.

(3) A person shall be disqualified for obtaining a licence to drive a public service vehicle unless he fulfils such conditions as may be prescribed.

(4) A licence to drive a public service vehicle may be limited to such type or types of vehicles as may be specified in the licence.

(5) A licence to drive a public service vehicle may at any time be suspended or revoked by the authority by whom it was granted upon the ground that, by reason of his conduct or physical disability, the holder is not a fit person to hold such a licence; and a licence suspended under this subsection shall during the time of suspension be of no effect.

(6) A licence to drive a public service vehicle shall, unless previously revoked, continue in force for five years from the date on which it is expressed to take effect.

(7) Without prejudice to section 23(3) of this Act if, on the date on which an application is made for a licence to drive a public service vehicle, the applicant is the holder of such a licence, the existing licence shall, notwithstanding anything in subsection (6) above, continue in force until the application is disposed of.

(8) A licence granted under this section to a person resident in any traffic area shall be valid in every other traffic area.

(9) Subject to section 68(1) and (3) of this Act, a person who contravenes subsection (1)(a) or (b) above shall be liable on summary conviction to a fine not exceeding level 4 on the standard scale.

Appeals to courts of summary jurisdiction in connection with drivers' licences

23

(1) A person who, being the holder of or an applicant for a licence to drive a public service vehicle, feels aggrieved by the refusal or failure of a traffic commissioner . . . to grant, or by the suspension or revocation of, such a licence, or by any limitation imposed thereon, may by notice in writing to the commissioner . . . , require him . . . to reconsider the matter and shall on the reconsideration be entitled to be heard either personally or by his representative.

(2) A person who is so aggrieved or who is dissatisfied with the decision of the commissioner . . . on the reconsideration of the matter may appeal—

(a) if he resides in England or Wales, to a magistrates’ court acting for the petty sessions area in which he resides,

(b) if he resides in Scotland, to the sheriff within whose jurisdiction he resides,

and on any such appeal the court or sheriff may make such order as it or he thinks fit and any order so made shall be binding on the commissioner . . . .

(3) Where the applicant for a licence to drive a public service vehicle, who is at the date of his application the holder of a licence, appeals under this section on the ground of refusal or failure to grant the licence, the existing licence shall, notwithstanding anything in section 22(6) of this Act, continue in force until the appeal has been disposed of.

Regulation of conduct etc. of drivers, inspectors, conductors and passengers

Regulation of conduct of drivers, inspectors and conductors

24

(1) Regulations may make provision for regulating the conduct, when acting as such, of—

(a) persons licensed to act as drivers of public service vehicles, and

(b) inspectors and conductors of such vehicles; and

(2) Subject to section 68(1) of this Act, if a person to whom regulations having effect by virtue of this section apply contravenes, or fails to comply with, any of the provisions of the regulations, he shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale and, in the case of an offence by a person acting as driver of a public service vehicle, the court by which he is convicted may, if it thinks fit, send notice of the particulars of the conviction to the Secretary of State requiring the Secretary of State to endorse them on the person's driving record (within the meaning of section 97A of the Road Traffic Offenders Act 1988).

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

(4) In this section and in section 25 of this Act “inspector”, in relation to a public service vehicle, means a person authorised to act as an inspector by the holder of the PSV operator’s licence under which the vehicle is being used.

(5) Notwithstanding section 1(1) of this Act, in this section and in sections 25 and 26 of this Act “public service vehicle” shall be construed as meaning a public service vehicle being used on a road for carrying passengers for hire or reward.

Regulation of conduct of passengers

25

(1) Regulations may make provision generally as to the conduct of passengers on public service vehicles or tramcars and in particular (but without prejudice to the generality of the foregoing provision) for—

(a) authorising the removal from a public service vehicle or tramcar of a person infringing the regulations by the driver, inspector or conductor of the vehicle or on the request of the driver, inspector or conductor by a police constable;

(b) requiring a passenger in a public service vehicle or tramcar who is reasonably suspected by the driver, inspector or conductor thereof of contravening the regulations to give his name and address to the driver, inspector or conductor on demand;

(c) requiring a passenger to declare, if so requested by the driver, inspector or conductor, the journey he intends to take or has taken in the vehicle, and to pay the fare for the whole of that journey and to accept any ticket provided therefor;

(d) requiring, on demand being made for the purpose by the driver, inspector or conductor, production during the journey and surrender at the end of the journey by the holder thereof of any ticket issued to him;

(e) requiring a passenger, if so requested by the driver, inspector or conductor, to leave the vehicle on the completion of the journey the fare for which he has paid;

(f) requiring the surrender by the holder thereof on the expiry of the period for which it is issued of a ticket issued to him.

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

(3) Subject to section 68(1) of this Act, if a person contravenes, or fails to comply with, a provision of regulations having effect by virtue of this section, he shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(4) In the application of this section to Scotland, subsection (1)(b) shall have effect as if after the word “address” there were inserted the words “to a police constable or”

Control of number of passengers

26

(1) Regulations may make provision with respect to public service vehicles for—

(a) the determination by or under the regulations of the number of the seated passengers and standing passengers respectively for whom a vehicle is constructed or adapted and fit to carry;

(b) the determination by or under the regulations of the number of such passengers respectively who may be carried in a vehicle;

(2) Subject to section 68(1) and (3) of this Act, if a person contravenes, or fails to comply with, a provision of regulations having effect by virtue of this section, he shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale.

Supplementary provisions

Returns to be provided by persons operating public service vehicles

27

Wages and conditions of employment of persons employed in connection with public service vehicles

28

Avoidance of contracts so far as restrictive of liability in respect of death of or injury to passengers in public service vehicles

29

A contract for the conveyance of a passenger in a public service vehicle shall, so far as it purports to negative or to restrict the liability of a person in respect of a claim which may be made against him in respect of the death of, or bodily injury to, the passenger while being carried in, entering or alighting from the vehicle, or purports to impose any conditions with respect to the enforcement of any such liability, be void.

PART III

Road service licences

Road services licences required for operation of stage carriage services

30–41

Grant of road service licences

31

(1) An application for a road service licence shall be made in such form as the traffic commissioners may require, and an applicant shall give the commissioners such information as they may reasonably require for disposing of the application.

(2) Where an application is made for the grant of a road service licence, the traffic commissioners—

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

(b) if they grant the licence, shall do so in accordance with the application except to the extent that they are 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 traffic commisioners shall in particular have regard to—

(a) the transport requirements of the area as a whole (including so much as is relevant not only of the commissioners' own traffic area but also of adjoining traffic areas) and of particular communities in the area ;

(b) any transport policies or plans which have been made by the local authorities concerned and have been drawn to the commissioners' attention by those authorities; and

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

(4) In subsection (3) above " the local authorities concerned " means—

(a) in Greater London, the Greater London Council;

(b) elsewhere in England and Wales, county councils ; and

(5) The traffic commissioners, on granting a road service licence, shall send notice thereof, including particulars of the services to be provided thereunder, to the chief officer of police of every police district in which any such service is to be provided and to each of the following councils in whose area any such service is to be provided, that is to say—

(a) the Greater London Council, any London borough council and the Common Council of the City of London;

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

Attachment to road service licences of conditions as to matters other than fares

32

(1) Subject to subsection (2) below and to any regulations, traffic commissioners granting a road service licence may attach to the licence such conditions as they think fit having regard to the interests of the public, and in particular to the matters mentioned in section 31(3)(a) to (c) of this Act, and may in particular attach thereto such conditions as they think fit (having regard as aforesaid) for securing—

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

(b) that copies of the timetable and fare-table are carried and are available for inspection in vehicles used on any such service;

(c) 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 disabled.

(2) No such condition as to fares as is mentioned in section 33(1) of this Act shall be attached under this section to a road service licence.

(3) The traffic commissioners by whom a road service licence was granted may at any time while it is in force vary the licence by—

(a) altering, in such manner as they think 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 they think fit having regard to those interests; or

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

(4) Where the holder of such a licence makes an application to the traffic commissioners requesting them to exercise then-powers under subsection (3) above, the commissioners shall exercise those powers in accordance with the application except to the extent that they are satisfied that to do so would be against the interests of the public.

(5) Compliance with any condition attached to a road service licence under this section may be temporarily dispensed with by the traffic commissioners by whom the licence was granted if they are 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.

Attachment to road service licences of conditions as to fares

33

(1) Subject to subsection (3) below and to any regulations, traffic commissioners may (whether at the time when the licence is granted or at any time thereafter, and whether or not in response to any particulars received by them under this Part of this Act) attach to a road service licence granted by them conditions or additional conditions as to the fares, or the minimum or maximum fares, which may be charged for services provided under the licence.

(2) Subject to subsection (3) below, the traffic commissioners by whom a road service licence was granted may at any time while it is in force vary the licence by—

(a) altering in such manner as they think fit any condition as to fares attached under subsection (1) above to the licence;

(b) removing any condition as to fares so attached to the licence.

(3) The traffic commissioners shall not exercise their powers under subsection (1) above or their powers of alteration under subsection (2) above in any particular case unless satisfied that the proposed exercise of those powers in that case is essential in the interests of the public—

(a) to protect the public from unreasonable use by the holder of the licence of his position as such; or

(b) to regulate the terms of competition between stage carriage services on any route or routes.

(4) Where the holder of a road service licence makes an application to the traffic commissioners requesting them to exercise their powers (whether of alteration or removal) under subsection (2) above, the commissioners—

(a) shall remove all the conditions attached under subsection (1) above to the licence except to the extent that they are satisfied that it is essential in the interests of the public to maintain them, with or without alteration, for one or both of the purposes mentioned in paragraphs (a) and (b) of subsection (3) above; and

(b) shall not exercise their powers of alteration under subsection (2) above unless satisfied that the proposed exercise of those powers is consistent with their reasons for not removing all the conditions attached under subsection (1) above to the licence.

(5) Compliance with any condition attached to a road service licence under subsection (1) above may be temporarily dispensed with by the traffic commissioners by whom the licence was granted if they are 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.

(6) Where it is proposed to make any change in the fares charged for any service provided under a road service licence, it shall be the duty of the holder of the licence to supply to the traffic commissioners, not later than the prescribed time before the date of the proposed change, the prescribed particulars of the proposed change.

(7) Subject to section 68(1) of this Act, a person who fails to supply within the prescribed time any particulars which he is required to supply under subsection (6) above shall be liable on summary conviction to a fine not exceeding £200.

(8) A person who in purporting to comply with subsection (6) above supplies any particulars which he knows to be false or does not believe to be true shall be liable on summary conviction to a fine not exceeding £500.

Grant of road service licences for services on routes not otherwise served

34

(1) If, in the case of any application for a road service licence, the traffic commissioners are satisfied that there are no other transport facilities available to meet the reasonable needs of the route on which the service which the applicant proposes to provide under the licence would operate—

(a) the commissioners shall grant the applicant a road service licence in respect of that route and shall do so in accordance with the application except to the extent that they are satisfied that to do so would be against the interests of the public; and

(b) in relation to the application and to the licence granted on it, sections 31 and 32 of this Act shall have effect as if section 31(2) to (4) and, in section 32(1), the words " and in particular to the matters mentioned in section 31(3)(a) to (c) of this Act" were omitted.

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

(3) No appeal shall lie under section 50 of this Act from a decision of the traffic commisioners to refuse to grant a road service licence in pursuance of this section.

Grant of road service licences for certain excursions or tours

35

(1) If, in the case of any application for a road service licence, the traffic commissioners are satisfied that the service which the applicant proposes to provide under the licence (" the proposed service ") would be an excursion or tour and are also satisfied either—

(a) that the proposed service would not compete directly with—

(i) any other service for which a road service licence has been granted, not being an excursion or tour, or

(ii) any London bus service within the meaning of section 23 of the Transport (London) Act 1969; or

(iii) any service being provided by means of one or more tramcars; or

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

the commissioners shall grant the applicant a road service licence in accordance with the application and, in relation to the application and to the licence granted on it, sections 31(2) to (4), 32 and 33 of this Act shall not apply.

(2) Section 30(4) of this Act does not prevent a road 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 a PSV operator's licence granted by the traffic commissioners for any traffic area, not being a licence which is for the time being of no effect by reason of its suspension.

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

(4) No appeal shall lie under section 50 of this Act from a decision of the traffic commissioners to refuse to grant a road service licence in pursuance of this section.

Revocation and suspension of road service licences

36

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

(2) The traffic commissioners shall not revoke or suspend a road 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 commissioners are satisfied that the licence should be revoked or suspended.

(3) On revoking or suspending a road service licence the traffic commissioners shall send notice thereof—

(a) to the chief officer of police of every police district in which the service to which the licence relates was provided ; and

(b) to each of the councils mentioned in section 31(5)(a) to (c) of this Act in whose area that service was provided.

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

Duration of road service licences

37

(1) Regulations shall specify the dates in the year on which road service licences are to expire.

(2) Subject to subsection (3) below, a road service licence shall, unless previously revoked, continue in force up to and including that one of the dates so specified which occurs next before the expiration of five years from the date on which the licence is expressed to take effect unless at the time of the granting of the licence the traffic commissioners for special reasons determine that it shall continue in force only up to and including an earlier date (being one of those so specified), in which case it shall, unless previously revoked, continue in force only up to and including that date.

(3) If, on the date on which a road service licence is due to expire, proceedings are pending before the traffic commissioners 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 36 of this Act.

(4) Nothing in this section shall prevent—

(a) the grant of a road service licence in respect of a service limited to one or more particular periods or occasions; or

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

Trial areas

Designation of trial areas

38

(1) For the purposes of this Part of this Act, a trial area is any area in Great Britain (outside Greater London) for the time being designated in accordance with the following provisions of this section as an area in which road service licences are not required for stage carriage services.

(2) The Secretary of State may, if he thinks fit, make an order in this section referred to as a " designation order ") so designating any area consisting of the whole or part of the area of a local authority, but shall not make such an order in respect of any area except on an application made to him by the local authority concerned.

(3) An application for a designation order shall specify the area which the local authority concerned wishes to be designated by the order; and the area designated by such an order as originally made—

(a) shall not include any area outside the area specified in the application on which the order is made; and

(b) shall not consist of less than the whole of the area so specified unless the reduction is made with the consent of the local authority concerned.

(4) Subject to subsection (5) below, the Secretary of State may by order vary or revoke a designation order but shall not do so except on an application made to him by the local authority concerned; and the Secretary of State—

(a) on an application for an order varying a designation order, may at his discretion refuse the application or make the order applied for either with or without modifications; and

(b) on an application for an order revoking a designation order, may at his discretion refuse the application or make the order applied for.

(5) A designation order—

(a) shall not be revoked before the end of the period specified in the order, as originally made, as the minimum period for which the order is to be in force, being a period of not less than two and not more than five years beginning with the day on which it comes into force;

(b) shall not before the end of that period be varied so as to exclude from the area designated by it any part of the area originally so designated; and

(c) shall at no time be varied so as to include in the area designated by it any area outside the area originally so designated.

(6) The preceding provisions of this section have effect subject to the provisions of Schedule 4 to this Act (which relate to the making of applications for, and the variation and revocation of, designation orders).

(7) Any order under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(8) In this section and Schedule 4 to this Act—

" designation order " has the meaning given by subsection (2) above (but does not include an order under this section altering the area designated by a designation order);

" local authority " means, for England and Wales, a county council and, for Scotland, a regional or islands council;

" the local authority concerned ", in relation to any area designated or proposed to be designated under this section, means the local authority whose area is or contains that area.

Stage carriage services in trial areas

39

(1) A road service licence is not required for the provision of a stage carriage service within a trial area.

(2) Where a stage carriage service operates partly within one or more trial areas and partly not within a trial area—

(a) a road service licence is not required in respect of so much of the service as operates not within a trial area but within a traffic area in which (except in any trial area) passengers are neither taken up nor set down in the course of the service; and

(b) any conditions attached to a road service licence under which any part of that service is provided shall not apply in relation to so much of the service as operates within any trial area.

(3) So much of subsection (3) of section 1 of the Road Traffic Regulation Act 1967 as provides that no prohibition or restriction on waiting imposed by a traffic regulation order under that section shall apply to a stage carriage shall not operate within a trial area.

Duty to publish particulars of stage carriage services in trial areas

40

(1) This section applies to any stage carriage service which operates wholly within a trial area; but where a stage carriage service operates only partly within a trial area, so much of it as operates within that area shall for the purposes of this section be treated as a separate stage carriage service to which this section applies.

(2) Before—

(a) starting to provide a new service to which this section applies; or

(b) making, otherwise than temporarily, any changes in a service to which this section applies; or

the operator of the service shall—

(i) give to the local authority concerned, and to every district council in whose area passengers will be or are taken up or set down in the course of the service in question (including, in a case within paragraph (b) above, the service as proposed to be changed), a notice giving the prescribed information about the new service, the changes or the discontinuance, as the case may be; and

(ii) publish in a local newspaper circulating in the locality served or to be served by the service a notice giving the prescribed information about the new service, the changes or the discontinuance, as the case may be.

(3) Subject to subsection (4) below, any notice required by subsection (2) above shall be given or published not later than the prescribed time before the operator does as mentioned in subsection (2)(a), (b) or (c), as the case may be.

(4) Where the operator of a service to which this section applies does as mentioned in subsection (2)(a), (b) or (c) above in consequence of unforeseen circumstances making it impracticable for him to give or, as the case may be, publish in accordance with subsection (3) above a notice required by subsection (2), subsection (3) shall not apply to that notice, but instead the notice in question shall be given or, as the case may be, published (with any necessary modifications) as soon as is practicable.

(5) If, at the time when any area becomes a trial area, there is being provided under a road service licence a stage carriage service which operates wholly or partly within that area, that service shall for the purposes of subsection (1) above be treated as one which operates wholly or, as the case may be, partly within a trial area.

(6) Subject to section 68(1) of this Act, a person who fails to give or publish as required by this section any notice which this section requires him to give or publish shall be liable on summary conviction to a fine not exceeding £200.

(7) Where more than one person falls to be regarded as the operator of a service to which this section applies, the requirements of this section are complied with if the requisite notices are given and published by any of those persons.

(8) In this section—

" the local authority concerned " has the meaning given by section 38(8) of this Act;

" operator " includes a prospective operator.

Relaxation in trial areas of operators' duties to co-operate and exchange information

41

(1) Subject to subsection (3) below, the duties of public passenger transport operators under the provisions mentioned in subsection (2) below, being duties to co-operate with and afford information to one another, shall not apply in relation to a service so far as it is provided within a trial area.

(2) The provisions referred to in subsection (1) above are—

(a) section 24(2) and (3) of the Transport Act 1968 (services in passenger transport areas);

(b) section 1(1)(c) of the Transport Act 1978 (services in England and Wales outside passenger transport areas); and

(c) section 151(1)(b) of the Local Government (Scotland) Act 1973 (services in Scotland outside passenger transport areas).

(3) Subsection (1) above shall not affect the duties of public passenger transport operators to co-operate with or afford information to—

(a) a Passenger Transport Executive;

(b) a county council; or

for the purpose of the discharge by any such Executive or council of its function of co-ordinating passenger transport services.

(4) In this section " public passenger transport operators " means persons providing public passenger transport services within the meaning of section 1(2) of the Transport Act 1978.

PART IV

Use of certain vehicles by educational and other bodies

42–45

Supplementary provisions as to permits under section 42

43

(1) A permit under section 42 of this Act shall be in such form as may be prescribed under section 44 of this Act and, subject to subsection (5) below, shall specify—

(a) the body to whom it is granted ; and

(b) the vehicle in respect of which it is granted.

(2) In addition to any conditions contained in it by virtue of section 42(4)(b) of this Act, a permit under that section shall contain such conditions as the traffic commissioners or other body granting it consider appropriate including, in particular, conditions—

(a) limiting the passengers who may be carried in the vehicle in pursuance of 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 under section 44 of this Act.

(3) A permit under section 42 of this Act may not be so varied as to substitute another body for the body to whom it was granted or another vehicle for the vehicle to which it relates but, subject thereto,—

(a) a permit under that section which is granted by a body designated under subsection (4) thereof may be varied or revoked by that body or, after consultation with that body, by the traffic commissioners for any traffic area in which the vehicle concerned has been used in pursuance of the permit; and

(b) a permit under that section which is granted by the traffic commissioners for any traffic area may be varied or revoked by them.

(4) A permit under section 42 of this Act shall remain in force until—

(a) it is revoked under subsection (3) above ; or

(b) in the case of a permit granted by a body designated under section 42(4), that body ceases to be so designated.

(5) If, having regard to the nature of a body to which they propose that a permit under section 42 of this Act should be granted, traffic commissioners or a body designated under subsection (4) of that section consider it appropriate, they may grant a permit under that section to a named individual on behalf of the body, rather than to the body itself; but a permit so granted shall be treated for the purposes of section 42 and subsection (3) above as granted to the body on whose behalf it is held.

Regulations for purposes of sections 42 and 43

44

(1) The Secretary of State may by regulations prescribe—

(a) the form of permits under section 42 of this Act and the matters of which account is to be taken under section 43 (2)(b) of this Act in determining the conditions of such a permit;

(b) the fees to be charged by traffic commissioners for the issue of such permits;

(c) the documents, plates and marks to be carried by vehicles used in pursuance of such permits and the manner and position in which they are to be carried;

(d) the conditions to be fulfilled by persons driving vehicles whilst they are being used in pursuance of such permits ; and

(e) the conditions as to fitness which are to be fulfilled by small passenger-carrying vehicles used in pursuance of such permits.

(2) Regulations made by virtue of any of paragraphs (a) to (d) of subsection (1) above may make different provision in relation to large passenger-carrying vehicles from that made in relation to small passenger-carrying vehicles.

(3) Subsection (1) or, as the case may be, subsection (2) of section 42 of this Act shall not apply to a vehicle at any time when it is used in such circumstances that there is a contravention of any provision of regulations made by virtue of any of paragraphs (c) to (e) of subsection (1) above.

(4) Before making regulations containing any provision made by virtue of paragraph (e) of subsection (1) above, the Secretary of State shall consult with bodies or persons appearing to him to be representative of—

(a) bodies using vehicles in pursuance of permits under section 42 of this Act;

(b) local authorities;

(d) persons employed in the provision of public transport services; and

(e) manufacturers of motor vehicles ;

and with such other bodies or persons as he considers appropriate.

(5) Regulations containing any provision made by virtue of paragraph (d) or paragraph (e) of subsection (1) above may contain such transitional provisions as the Secretary of State thinks fit.

Community bus services

45

(1) where on an application in that behalf the traffic commissioners for any traffic area grant a road service licence in respect of a community bus service—

(a) the licence shall state that it is granted in respect of such a service;

(b) the conditions specified in subsection (2) below shall be attached to the licence ; and

(c) such provision as is mentioned in subsection (3) below may be included in the licence with respect to the use of the community bus otherwise than in the operation of the community bus service.

(2) The conditions to be attached in every case to a road service licence granted in respect of a community bus service are—

(a) that any vehicle used in the course of the service is adapted to carry more than eight but not more than sixteen passengers;

(b) that the driver of any vehicle being used in the course of the service—

(i) is a volunteer; and

(ii) if not the holder of a public service vehicle driver's licence, fulfils any prescribed conditions for drivers of community buses;

(c) that any vehicle used in the course of the service fulfils the prescribed conditions of fitness for use as a community bus; and

(d) that there is displayed on any vehicle being used in the course of the service such disc or other document issued by the traffic commissioners as may be prescribed for a vehicle used as a community bus;

and the powers conferred by section 32(3) and (5) of this Act to alter, remove or dispense from compliance with conditions attached to a road service licence shall not apply to conditions attached under this subsection.

(3) Traffic commissioners on granting a road service licence in respect of a community bus service may, if they are satisfied that in all the circumstances it is reasonable to do so with a view to providing financial support for that service, include in the licence provision authorising the use of the community bus as a contract carriage or as an express carriage (or both), subject to such restrictions (if any) as the commissioners think fit to impose; and where such provision is included in a licence, the conditions attached under subsection (2) above to the licence shall apply to the use of the community bus as a contract carriage or express carriage as they apply to the use of a vehicle in the course of the community bus service.

(4) Sections 6, 9, 12(1) and 22 of this Act shall not apply to the driving or use of a vehicle in the course of a community bus service or in the course of its use as a contract carriage or express carriage in accordance with any such provision as is mentioned in subsection (3) above.

(5) Where a community bus service is provided in whole or in part in Greater London, that service or part shall not be regarded as a London bus service within section 23 of the Transport (London) Act 1969 (under which the agreement or consent of the London Transport Executive is required instead of a road service licence); but where the traffic commissioners of the Metropolitan Traffic Area propose—

(a) to grant a road service licence in respect of such a service; or

(b) to vary the conditions attached to such a licence,

they shall consult the London Transport Executive about the proposal.

(6) Subsection (7) of section 30 of this Act shall apply in relation to a condition attached to a road service licence under subsection (2) above as it applies in relation to a condition so attached under section 32 of this Act; and, for the purposes of sections 69 to 72 and 74 of this Act, an offence under the said subsection (7) as applied by this subsection shall be treated as an offence under Part III of this Act.

(7) Regulations may provide that, in relation to any community bus service provided in whole or in part within a trial area, the preceding provisions of this section shall have effect with such additions, omissions, alterations or other modifications as may be prescribed.

(8) In this section—

"community bus service" means a stage carriage service provided— by a body of persons (whether corporate or unincorporate) concerned for the social and welfare needs of one or more communities; and without a view to profit, either on the part of those persons or of anyone else; and in relation to such a service " the community bus " means any vehicle used on a regular basis in the course of the service ;

" volunteer ", in reference to the driver of a vehicle on any journey, means that he is not paid for driving the vehicle on that journey, disregarding— any payment of reasonable expenses incurred by him in making himself available to drive; and any payment representing earnings lost as a result of making himself available to drive in exceptional circumstances.

Fare-paying passengers on school buses

46

(1) Subject to subsection (2) below, a local authority may—

(a) use a school bus, when it is being used to provide free school transport, to carry as fare-paying passengers persons other than those for whom the free school transport is provided;

(b) use a school bus belonging to the authority, when it is not being used to provide free school transport, to provide a local . . . service;

and sections 6, 8, 9, and 12(1) of this Act shall not apply to a school bus belonging to a local authority in the course of its use by the authority in accordance with this subsection.

(2) Subsection (1) above does not affect the duties of a local authority in relation to the provision of free school transport or authorise a local authority to make any charge for the carriage of a pupil on a journey which he is required to make in the course of his education at a school maintained by such an authority.

(3) In this section—

“free school transport” means transport provided by a local authority free of charge— in pursuance of arrangements under section 508B(1), section 508C(1), section 508F(1), section 509(1) or (1A) or section 509AA(7)(b) or (9)(a) of the Education Act 1996, in pursuance of arrangements made by the authority in pursuance of a scheme made by them under Schedule 35C to that Act (school travel schemes), or in pursuance of arrangements under sections 3 or 4 of the Learner Travel (Wales) Measure 2008, or otherwise, in the exercise of any function of the authority,for the purpose of facilitating the attendance of persons receiving education or training at any premises;

“local authority” has the meaning given by section 579(1) of the Education Act 1996;

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

“school bus”, in relation to a local authority , means a motor vehicle which is used by that authority to provide free school transport.

(4) In the application of this section to Scotland—

(a) for the references to a local authority there shall be substituted references to an education authority;

(b) in subsection (2) above for “maintained by” there shall be substituted “under the management of”; and

“free school transport” means transport between a pupil’s home and place of education provided in pursuance of arrangements under subsection (1)(a) of section 51 of the Education (Scotland) Act 1980 (pupils for whom such transport facilities are necessary) or in pursuance of subsection (2) of that section (other pupils allowed to use vacant seats free of charge)

Provisions relating to areas designated as experimental areas

Designation of experimental areas

47

Powers of local authorities in relation to experimental areas

48

(1) In relation to an experimental area the local authority concerned shall have the powers conferred by this section.

(2) The local authority concerned may grant authorisations in respect of the use of vehicles for the carriage of passengers for hire or reward, whether or not at separate fares—

(a) within the experimental area or within one or more parts of that area; or

(b) within the experimental area and also on journeys falling partly within the experimental area and partly outside that area including, subject to subsection (5) below, journeys falling partly within the area of another local authority.

(3) An authorisation under this section may be either—

(a) a general authorisation, applying (according to its terms) either—

(i) to private vehicles generally; or

(ii) to private vehicles adapted to carry not more than a specified number of passengers, being a number less than sixteen; or

(b) a special authorisation issued to a specified person and applying to such one or more private vehicles or commercial vehicles as may be specified in the authorisation.

(4) An authorisation under this section shall specify the experimental area to which it relates and shall either—

(a) state that it applies to the whole of that area ; or

(b) specify the part or parts of that area to which it applies; or

(c) state that it applies to the whole of that area and also covers journeys of the kind mentioned in subsection (2)(b) above.

(5) A special authorisation granted by a local authority which is expressed to cover journeys of the kind mentioned in subsection (2)(b) above shall be of no effect within the area of another local authority unless granted with that other authority's consent.

(6) An authorisation under this section shall be granted only with the approval of the Secretary of State, given either for that particular authorisation or generally for authorisations of a class or description into which that authorisation falls.

An approval under this subsection given for a class or description of special authorisations may be limited so as to apply only to the grant of authorisations of that class or description containing conditions of a kind specified in the approval.

(7) Schedule 5 to this Act shall have effect with respect to authorisations under this section,

(8) Subject to subsection (9) below, where, in the case of any private or commercial vehicle, the use of the vehicle within any particular area, or on any particular journey, is covered by an authorisation under this section, then, in relation to its use in that area or on that journey in circumstances in which the relevant conditions are fulfilled, the vehicle shall be treated as not being a public service vehicle for the purposes of—

(a) this Act; and

(b) any other 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 this Act.

In this subsection " the relevant conditions " means—

(a) in the case of a general authorisation, the conditions attached to the authorisation by virtue of paragraph 1 of Schedule 5 to this Act, and

(b) in the case of a special authorisation, any conditions attached to the authorisation under that Schedule.

(9) Nothing in subsection (8) above shall affect the operation of section 40 of this Act.

(10) In this section and in Schedule 5 to this Act—

" commercial vehicle " means a motor vehicle adapted to carry not more than eight passengers which, apart from any use made of it in pursuance of an authorisation under this section, is used for carrying passengers for hire or reward in the course of a passenger transport business;

" passenger transport business " means any business which consists of or includes the carrying of passengers for hire or reward;

" private vehicle " means a motor vehicle adapted to carry not more than sixteen passengers which, apart from any use made of it in pursuance of an authorisation under this section, is not used for carrying passengers for hire or reward in the course of a passenger transport business;

" specified", in relation to an authorisation under this section, means specified in the authorisation;

and references to the carrying of passengers for hire or reward shall be construed in accordance with section 1(5) of this Act.

Travel concessions

49

PART V — Miscellaneous and Supplementary

Appeals to the Secretary of State

50

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

(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 Upper Tribunal .

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