Before making any order under subsection (3) of this section, the Secretary of State shall consult with the Passenger Transport Authority for the area and, where the area is in England and Wales, with the councils of the districts comprised in the F12county which is coterminous with or includes that area.

Each of the councils of F13the districts comprised in F14a county which is coterminous with or includes a passenger transport 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.

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. . . F15thereto other than F16section 20(6) and (7) shall be construed as a reference to the Secretary of State.

Before making any order under subsection (3) of this section, the Secretary of State shall consult with the Passenger Transport Authority for the area and, where the area is in England and Wales, with the councils of the districts comprised in the county which is coterminous with or includes that area.

Each of the councils constituted under section 2 of the Local Government etc.(Scotland) Act 1994 whose area (or any part of whose area) falls within the Strathclyde Passenger Transport 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.

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.

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

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

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

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

It shall be the duty both of the Authority and of the Executive for any passenger transport area, in exercising or performing any of their functions under the preceding provisions of this section, to have regard to the transport needs of members of the public who are elderly or disabled.

For the purposes of subsection (8) above, any two bodies corporate are to be treated as inter-connected if one of them is a body corporate of which the other is a subsidiary or if both of them are subsidiaries of the same body corporate; and in that subsection “group of interconnected bodies corporate” means a group consisting of two or more bodies corporate all of which are interconnected with each other in the sense given above.

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

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

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. . . F29 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.

If the Authority for a F21passenger 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 M1F30Acquisition of Land Act 1981 shall F31apply to the compulsory purchase.

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 F32Acquisition of Land Act 1981 form part of a common, open space or fuel or field garden allotment.

The Ferries (Acquisition by Local Authorities) M2Act 1919 shall apply to the Executive for a F21passenger transport area as if the Executive were within the meaning of that Act a local authority for that area.

Part I of the Harbours, Piers and Ferries (Scotland) M3Act 1937 shall apply to the Executive for a F21passenger transport area as if that area were a F33region and the Executive were the council of that F33region.

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 F21passenger 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.

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).

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.

If the Authority for 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 as if the Executive were a local authority within the meaning of that Act, and as if this Act had been in force immediately before the commencement of that Act.

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.

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

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

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.

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).

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 or with the consent of the Executive granted under Schedule 6 to this Act 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.

If the Authority for a designated 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 as if the Executive were a local authority within the meaning of that Act, and as if this Act had been in force immediately before the commencement of that Act.

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.

The Ferries (Acquisition by Local Authorities) Act 1919 shall apply to the Executive for a designated area as if the Executive were within the meaning of that Act a local authority for that area.

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

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 designated 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.

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).

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 F36section 13(2) of this Act in respect of expenditure incurred before that date but has not yet been received by the Executive.

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.

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.

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.

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.

The provisions of this section shall have effect with respect to borrowing by the Executive for a F39designatedF39passenger transport area.

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.

F41Each of the councils of constituent areasF41The Authority for the Executive’s area shall have power to lend money to the Executive F42but 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

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

Any expenditure of the Strathclyde Passenger Transport Authority shall, in so far as not otherwise met, be met by the local authorities whose areas lie wholly or partly within the area of the Authority in such proportions as the authorities may agree.

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

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

As soon as the accounts of the Executive for any accounting period have been audited in accordance with Part III of the Local Government Finance Act 1982 they shall send a copy of any statement of accounts prepared by them for that period pursuant to regulations under section 23 of that Act to the Minister, to the Authority F50and to each of the councils of the districts comprised in the county which is coterminous with or includes the Executive’s area, together with a copy of the auditor’s opinion on that statement.

The accounts of the Executive shall be audited by an auditor or auditors to be appointed annually by the Authority for the area, and any person so appointed as auditor shall be either the district auditor or some other person who is eligible for appointment as a company auditor under section 25 of the Companies Act 1989 or who is a member of the Chartered Institute of Public Finance and Accountancy;] and any auditor so appointed shall be entitled to require from any officer of the Executive or of any subsidiary of theirs such books, deeds, contracts, accounts, vouchers, receipts, and other documents, and such information and explanations, as may be necessary for the performance of his duties.

So soon as the accounts of the Executive have been audited as aforesaid, they shall send a copy of the statement of accounts referred to in subsection (1)(b) of this section to the Minister, and to the Authority . . . . . . together with a copy of the report made by the auditor or auditors on that statement.

The accounts of the Executive shall be audited by an auditor or auditors to be appointed annually by the Authority for the area, and any person so appointed as auditor shall be either the district auditor or some other person who is eligible for appointment as a company auditor under section 25 of the Companies Act 1989 or who is a member of the Chartered Institute of Public Finance and Accountancy; and any auditor so appointed shall be entitled to require from any officer of the Executive or of any subsidiary of theirs such books, deeds, contracts, accounts, vouchers, receipts, and other documents, and such information and explanations, as may be necessary for the performance of his duties.

So soon as the accounts of the Executive have been audited as aforesaid, they shall send a copy of the statement of accounts referred to in subsection (1)(b) of this section to the Minister, to the Authority for the designated area and to each of the councils of constituent areas, together with a copy of the report made by the auditor or auditors on that statement.

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

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

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

Notwithstanding anything in this Part of this Act, nothing done by the Executive for a F51passenger 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.

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

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

The Authority, in exercising or performing any of their functions under this Part of this Act, shall have regard to the duty imposed on the Executive by subsection (1) of section 11 of this Act, . . .

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

Notwithstanding anything in this Part of this Act, nothing done by the Executive for 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.

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

If the Authority are satisfied that a particular passenger transport service which the Executive have power to provide is required to meet the needs of their designated area, but the Executive are not willing to provide it or to arrange for its provision because they consider that the cost of providing it would be too high in relation to the contribution which it would make to the needs of the area, the Authority may give the Executive a direction requiring the Executive to provide or secure the provision of that service, and the Executive shall comply with that direction; but on giving any such direction the Authority shall, unless the Executive agree to the contrary in writing, give the Executive a written undertaking to issue a precept under section 13 of this Act to meet any cost incurred by the Executive in consequence of the direction.

The Authority, in exercising or performing any of their functions under this Part of this Act, shall have regard to the duty imposed on the Executive by subsection (1) of section 11 of this Act, to the provisions of subsection (4) of that section, and to any limit on capital expenditure by the Executive and their subsidiaries imposed by the Minister under the said subsection (4).

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

Notwithstanding anything in this Part of this Act, nothing done by the Executive for a designated 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.

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

In addition to any power of the Authority under any other provision of this Part of this Act to give directions to the Executive as respects any matter, the Authority may give to the Executive directions as to the exercise and performance by the Executive of their functions (including the exercise of rights conferred by the holding of interests in companies) in relation to matters appearing to the Authority to affect the carrying out by the Authority or the Executive of their respective duties under section 9(3) of this Act.

The Executive shall provide the Authority at such time or intervals and in such form and manner as the Authority may require with information with respect to the operations and the expenditure on capital and revenue account respectively which are planned or under consideration by the Executive and shall furnish the Authority with such returns, accounts and other information with respect to the property and activities of the Executive or any subsidiary of theirs as the Authority may from time to time require.

The Authority may from time to time cause a review to be made of the organisation of the Executive’s undertaking and may give to the Executive such directions as appear to the Authority from any such review to be requisite to secure that the Executive’s undertaking is organised in the most efficient manner; and the Executive shall not make, or permit to be made, any substantial change in the manner in which their undertaking is organised except in pursuance of a direction given by the Authority under this subsection, or with the approval of the Authority.

The Authority for any F62area designated by an order under section 9(1) of this ActF62passenger 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 F63as the Minister may directF63as 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 F64by the order aforesaidF64by any order made, or having effect as if made, under section 9(3) of this Act to be dealt with in the report.

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).

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

Section 1(1) to (5) of the M7Water 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.

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.

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.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F72

The Railways Board 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.

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 Railways Board F82or a wholly-owned subsidiary of that Board in respect of the railway passenger services provided by the Board F83or the subsidiary in pursuance of the agreement.

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.

If any dispute arises between the Executive and the Railways Board F84or any wholly-owned subsidiary of that Board 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 Board F85or the subsidiary with respect to the dispute as he thinks fit.

Before giving any directions under subsection (6) of this section to the Executive for a F74passenger transport area in Scotland or Wales the Minister shall consult with the Secretary of State.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F86

In relation to orders. . . F88 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.

Any order. . . F88 made under this Part of this Act shall be subject to annulment in pursuance of a resolution of either House of Parliament.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F89

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 a F90passenger 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.

It shall be the duty of any person to whom the Minister F91or an Authority for a F90passenger transport area gives directions under this Part of this Act to give effect to those directions.

Any direction given by the Minister F91or an Authority for a F90passenger transport area under this Part of this Act shall be in writing.

For the purposes of sections 10(1)(vi), 15(1)(d) and 20(2)(b), (4) and (6) of this Act “wholly-owned subsidiary” has the meaning given by section 736 of the M8Companies Act 1985.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F98

F98Subsection (2) of this section shall not be construed as imposing, either directly or indirectly, on any of the authorities mentioned therein any form of duty or liability enforceable by proceedings before any court to which that authority would not otherwise be subject.

Subsections (2) and (3) of this section shall not be construed as imposing, either directly or indirectly, on any of the authorities mentioned therein any form of duty or liability enforceable by proceedings before any court to which that authority would not otherwise be subject.

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

[F102The Bus Company and] the Scottish Group shall [F102each] assume a commencing capital debt in accordance with the provisions of Schedule 2 to this Act.

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.

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.

Where any of the securities referred to in subsection [F109(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; [F109and paragraphs (c) and (d) of the said subsection (1) and] paragraphs (d) and (e) of the said subsection (2) shall not apply to money owed in the ordinary course of trading.

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 [F111between 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 [F111the 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, [F111the Bus Company or, as the case may be,] the Scottish Group.

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 [F112(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.

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 [F113Bus Company and] the Scottish Group [F113respectively], 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.

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.

Notwithstanding anything in section 4 of the Act of 1962, [F114as 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.

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 F115subsection (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.

Subject to the provisions of this section, the Minister may, with the approval of the Treasury, make in such cases as he thinks fit a grant to any person operating public service vehicles in Great Britain towards approved capital expenditure incurred by that person in providing a new vehicle of a type approved for the purposes of this section by the Minister, being a vehicle which is provided for use by that person F117wholly or mainly in the operation of bus services in Great Britain and which first becomes available to that person for such use on or after such date, not being earlier than 1st September 1968, as the Minister may by order specify.

In making any grant under this section in respect of any vehicle the Minister shall impose such conditions for securing that the vehicle will be used as mentioned in subsection (1) of this section, and may impose such other conditions, as he thinks fit; and those conditions may include conditions for repayment in specified circumstances.

Subject to subsection (5) of this section, the amount of any grant under this section shall be twenty-five per cent. of the approved capital expenditure in respect of which it is granted, and no amount by way of such a grant shall be paid in respect of a vehicle which first becomes available for such use as is mentioned in subsection (1) of this section after the date of the expiration of the period of seven years beginning with the date specified under the said subsection (1).

The provisions of Schedule 8 to this Act shall have effect for the purpose of avoiding fraudulent applications for grant under this section and of securing the observance of any conditions attached to any such grant.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F119

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F120

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.

Any of the following councils, namely the council or any county,. . . F121 or F122district 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. . . F123 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.

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.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F125

A regional, islands or district council 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 bus 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.

A council or two or more 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.

The Secretary of State may, with the approval of the Treasury, make grants in such cases and subject to such conditions as he thinks fit to a council in respect of expenditure incurred by that council in making grants under subsection (1) or (2) above, and any grant under this subsection in respect of expenditure in connection with a bus service shall be of an amount equal to half the expenditure in respect of which the grant is made.

The Secretary of State may, with the approval of the Treasury make grants in such cases and subject to such conditions as he thinks fit to a council in respect of expenditure incurred by that council in providing a ferry service which in the opinion of the council is or will be for the benefit of persons residing in rural areas.

In this section “council” means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F126

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F127

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F130

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 ”.

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.

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.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F131

This section applies to the following authorities, namely, the Boards and the new authorities.

It shall be the duty of each of the authorities to whom this section applies so to perform their functions under the Act of 1962 or this Act as to secure that combined revenues of the authority and of their subsidiaries taken together are not less than sufficient to meet their combined charges properly chargeable to revenue account, taking one year with another.

Each of the authorities to whom this section applies shall secure that their subsidiaries charge to revenue account in every year all charges which are proper to be made to revenue account, including, in particular, proper provision for the depreciation or renewal of assets.

Notwithstanding anything in paragraph (a) of the proviso to section 18(4) of the Act of 1962, the purposes for which the moneys comprised in the general reserve of any of the authorities to whom this section applies may be applied shall include the purposes of any subsidiary of theirs.

Subsection (1) of section 18 of the Act of 1962 shall cease to have effect, and references to that subsection in the Act of 1962 shall be construed as references to subsection (2) of this section.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F134

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F135

In section 22 of the Act of 1962 as amended by the Transport Finances Act 1966, subsections (2) and (3) (which relate to deficits on revenue account of the Railways Board or the London Board) and subsection (6) (which temporarily relieves those Boards of the obligation to establish a general reserve) shall cease to have effect.

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

For the purposes of subsections (2) and (3) of this section, the provisions of section 51(5) of this Act shall be disregarded.

This section applies to the Railways Board.

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The Board shall as soon as practicable after 1st January 1969 adjust their accounts so that the total net book value of their capital assets does not exceed the aggregate of the amount specified in subsection (2)(b) of this section and their other liabilities.

If in any accounting year of the Board there is an excess of the revenue of the Board over the total sums properly chargeable by them to revenue, the Minister may, with the approval of the Treasury, require that excess, so far as it appears to him, after consultation with the Board, to be surplus to the requirements of the Board, to be paid over to the Minister, who shall pay it into the Consolidated Fund.

This section applies to the Waterways Board.

The Minister or any other Minister of the Crown may, with the approval of the Treasury, from time to time make grants to the Board.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F143

If in any accounting year of the Board there is an excess of the revenue of the Board over the total sums properly chargeable by them to revenue, the Minister may, with the approval of the Treasury, require that excess, so far as it appears to him, after consultation with the Board, to be surplus to the requirements of the Board, to be paid over to the Minister, who shall pay it into the Consolidated Fund.

The Minister and the Secretary of State shall each send every account prepared by him under subsection (1) or (2) of this section to the Comptroller and Auditor-General not later than the end of November following the year to which the account relates; and the Comptroller and Auditor-General shall examine, certify and report on the account and lay copies of it, together with his report, before each House of Parliament.

This section applies to the following authorities namely, the Boards and the new authorities.

An authority to whom this section applies may take such steps as aforesaid with respect to any matter either by themselves carrying out the necessary research or doing the necessary work or by arranging for that research to be carried out or that work to be done by some other person with or without assistance (including financial assistance) from that authority; but nothing in this section shall authorise any such authority to do themselves, either directly or through a subsidiary, any work such as is mentioned in subsection (2)(b) of this section which the authority would not have power to do apart from this section.

In the application of this section to the Scottish Group, the reference to the Minister shall be construed as a reference to the Secretary of State.

In section 27(3) of the Act of 1962 for the words “education and research" there shall be substituted the words “ and education ”.

In relation to [F150the Bus Company and] the Scottish Group, subsection (1)(a) of this section shall have effect as if sub-paragraphs (ii) and (v) thereof were omitted.

In the application of sections 11, 13, 14, 17 and 25 of the Act of 1962 to the Scottish Group any reference to the Minister shall be construed as a reference to the Secretary of State.

The reference in subsection (1) of section 16 of the Act of 1962 to a working agreement to which that section applies shall include a reference to any arrangements such as are mentioned in section 50(9) of this Act.

This section applies to the following authorities, namely, the Boards and the new authorities, but in its application to the Scottish Group any reference to the Minister shall be construed as a reference to the Secretary of State.

An authority to whom this section applies shall not engage in any activity authorised by subsection (2) of this section, and shall exercise their control over any subsidiary of theirs so as to ensure that the subsidiary does not engage in any such activity, unless the authority are satisfied that they or the subsidiary can do so without detriment to the duties imposed on the authority by the Act of 1962 or this Act.

The Minister shall publish, in such manner as he thinks fit, any proposals approved by him under subsection (4) of this section, and shall send copies of those proposals to the Confederation of British Industry and the Trades Union Congress.

Each authority to whom this section applies shall include in the report in respect of any year required to be submitted by them under section 27(8) of the Act of 1962 such particulars as the Minister may, after consultation with the authority and with the approval of the Treasury, direct with respect to all or any of the activities authorised by subsection (2) of this section or the activities of manufacture authorised by section 13 of the Act of 1962 which have been carried on in that year by the authority or any of their subsidiaries.

The foregoing provisions of this section shall have effect notwithstanding subsection (1) of section 13 of the Act of 1962 (so far as it confines any authority’s powers of manufacture, purchase and repair to those conferred by that section), and in that section—

• subsection (2) (which relates to the powers of the Waterways Board to manufacture for sale and to repair plant and equipment of a kind ordinarily made for use in connection with the operation of an inland waterway);

• subsection (3) (which is superseded by the provisions of subsection (4) of this section) except as respects proposals approved thereunder before the appointed day for the purposes of this section;

• subsection (5) (which restricts the power of the Boards to manufacture road vehicles, bodies or chassis for road vehicles or major components of road vehicles);

• subsection (6) (which restricts the power of the Boards to purchase or trade in road vehicles or in spare parts, accessories, petrol or oil for such vehicles and from engaging in the maintenance or repair of such vehicles, spare parts or accessories); and

• subsection (7) (which restricts the power of the Boards to engage in shipbuilding),

shall cease to have effect.

Section 29(7) of the Act of 1962 (which relates to manufacture or production by subsidiaries of the Holding Company) shall have effect as if each of the new authorities were one of the Boards.

In this section references to manufacture include references to construction and production, references to repair include references to maintenance, and references to selling or purchasing include references to supplying, or, as the case may be, obtaining, by exchange, hire or hire-purchase.

Where a Board or a new authority propose under section 11 of the Act of 1962 to develop any of their land for use otherwise than for the purposes of their business, the Minister may give his consent under subsection (4) of that section to the acquisition by that Board or authority by agreement of adjoining land for the purpose of developing it with the other land whether or not it appears to him that the other land cannot be satisfactorily developed unless the adjoining land is so acquired;and accordingly, in the said subsection (4), the words from “but the Minister" to “by the Board" (which preclude the Minister from giving his consent unless it so appears to him) shall cease to have effect.

A Board or new authority may exercise the power conferred by the said subsection (4) without the consent of the Minister in any case where the Minister has under subsection (3) of the said section 11 consented to the incurring by that Board or new authority of a substantial item of expenditure in developing land as aforesaid which includes expenditure proposed to be incurred in that exercise of that power.

Notwithstanding anything in the said subsection (4), where a Board or new authority propose to dispose of any of their land they shall have power to acquire by agreement adjoining land for the purpose of disposing of it together with the other land; but the Board or new authority shall not incur any substantial item of expenditure under this subsection without the consent of the Minister, and the Minister may from time to time give directions to the Boards and the new authorities indicating what is to be treated for the purposes of this subsection as a substantial item of expenditure.

In the application of subsections (1) to (3) of this section to the Scottish Group, any reference therein to the Minister shall be construed as a reference to the Secretary of State.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F155

Where a Board or a new authority propose under section 11 of the Act of 1962 to develop any of their land for use otherwise than for the purposes of their business, the Minister may give his consent under subsection (4) of that section to the acquisition by that Board or authority by agreement of adjoining land for the purpose of developing it with the other land whether or not it appears to him that the other land cannot be satisfactorily developed unless the adjoining land is so acquired;and accordingly, in the said subsection (4), the words from “but the Minister" to “by the Board" (which preclude the Minister from giving his consent unless it so appears to him) shall cease to have effect.

A Board or new authority may exercise the power conferred by the said subsection (4) without the consent of the Minister in any case where the Minister has under subsection (3) of the said section 11 consented to the incurring by that Board or new authority of a substantial item of expenditure in developing land as aforesaid which includes expenditure proposed to be incurred in that exercise of that power.

Notwithstanding anything in the said subsection (4), where a Board or new authority propose to dispose of any of their land they shall have power to acquire by agreement adjoining land for the purpose of disposing of it together with the other land; but the Board or new authority shall not incur any substantial item of expenditure under this subsection without the consent of the Minister, and the Minister may from time to time give directions to the Boards and the new authorities indicating what is to be treated for the purposes of this subsection as a substantial item of expenditure.

In the application of subsections (1) to (3) of this section to the Scottish Group, any reference therein to the Minister shall be construed as a reference to the Secretary of State.

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

In addition to their power under the provisions of sections 3(3)(e), 9(2)(c) or 10(3)(f) of the Act of 1962 to store certain goods and to use certain premises to provide facilities for the storage of other goods, the Railways Board,. . . F156 and Waterways Board shall each have power, with the consent of the Minister, to provide such facilities at any other premises; and the said section 3(3)(e) shall apply to goods which have been or are to be carried by a subsidiary of the Railways Board as it applies to goods which have been or are to be carried by that Board.

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

The Waterways Board, [F158the Bus Company] and the Scottish Group shall each have power to provide and manage hotels in places where those using the inland waterways owned or managed by the Waterways Board or, as the case may be, the transport services provided by [F158the Bus Company] or Scottish Group may require them, for use both by those and other persons.

F159In subsection (3) of this section the reference to hotels includes a reference to any other form of residential accommodation or facilities, including caravan and camping sites, for travellers or persons on holiday; and the said subsection (3) shall be without prejudice to the powers of the Waterways Board, [F160the Bus Company] or the Scottish Group under section 14(1)(d) of the Act of 1962 to provide amenities and facilities for persons for whom they do not provide residential accommodation or facilities.

In addition to the powers of the Waterways Board to provide the transport services by road authorised by section 10(3)(c) of the Act of 1962 (carriage of goods which have been or are to be carried by the Board by inland waterway and carriage of goods where the use of an inland waterway owned or managed by the Board has been temporarily interrupted), that Board shall have power, with the consent of the Minister, to provide other transport services by road for the carriage of goods and to carry goods by those services.

Without prejudice to the powers of the Waterways Board apart from this subsection, that Board shall have power to provide services and facilities for the use for amenity or recreational purposes (including fishing) of the inland waterways and reservoirs owned or managed by them.

Each of the Boards and new authorities shall have power to provide for any person technical advice or assistance, including research services, as respects any matter in which the Board or new authority have skill or experience.

Without prejudice to their powers apart from this subsection, each of the Boards and the new authorities shall have power to form, promote and assist, or join with any other person in forming, promoting and assisting, a company for carrying on any activities which that Board or new authority have power to carry on.

Where a company for carrying on any activities which any of the Boards or new authorities have power to carry on has been formed in the exercise of the powers conferred by subsection (8) of this section by that Board or new authority, whether alone or jointly with some other person, or where in the exercise of their powers under paragraph (a) of section 14(1) of the Act of 1962 any of the Boards or new authorities have entered into an agreement with any person for the carrying on by that person, whether as agent for that Board or new authority or otherwise, of any of the activities which that Board or new authority may themselves carry on, then, without prejudice to their powers under paragraph (b) of the said section 14(1), that Board or new authority may, with the consent of the Minister, or, in the case of the Scottish Group, with the consent of the Secretary of State, enter into arrangements with that company or person for the transfer from that Board or new authority to that company or person, in such manner and on such terms (including payments by any of the parties to the arrangements to any other of them) as may be provided for by the arrangements, of any property, rights or liabilities of that Board or new authority relevant to the carrying on of those activities.

In section 43(3) of the Act of 1962, after the word “recover" there shall be inserted the words “ or waive ”.

This section applies to the following authorities, namely, the Boards and the new authorities.

For the purposes of paragraphs (d), (f), (g) and (h) of section 14(1) of the Act of 1962, services and facilities provided by, persons employed by, or equipment of, a subsidiary of an authority to whom this section applies, and, for the purposes of section 15(1) of that Act, land required for the purposes of the business of a wholly-owned subsidiary of such an authority, shall be deemed to be services and facilities provided by, persons employed by, equipment of, or land required for the purposes of the business of, that authority; and section 43(1) to (3) of the Act of 1962 shall apply to any subsidiary of an authority to whom this section applies as they apply to that authority.

In section 27(1) of the Act of 1962 (which empowers the Minister or, as the case may be, the Secretary of State to give directions of a general character as to the exercise and performance by any authority to whom this section applies of their functions in relation to matters which appear to him to affect the national interest) after the word “functions" there shall be inserted the words “ (including the exercise of rights conferred by the holding of interests in companies) ”.

A wholly-owned subsidiary of an authority to whom this section applies shall not be regarded as a common carrier when carrying on any activity which that authority have power to carry on and in carrying on which that authority are not to be so regarded.

Where a company of which two or more authorities to whom this section applies are members would, if those authorities were a single body corporate, be a wholly-owned subsidiary of that body corporate, then, whether or not that company is apart from this subsection a subsidiary of one of those authorities, that company shall be deemed for the purposes of the Act of 1962 and of the provisions other than F161Part VI of this Act to be a wholly-owned subsidiary of each of those authorities; and any such company is hereafter in this section referred to in relation to each of those authorities as a “joint subsidiary” of that authority.

In the application of subsection (6) of this section to a joint subsidiary of the Scottish Group, any reference in that subsection to the Minister shall be construed as including a reference to the Secretary of State.

Section 14(6) of the Act of 1962 (which provides that the powers conferred by the foregoing provisions of that Act are cumulative and that those provisions relate only to the capacity as a statutory corporation of any authority on whom those powers are conferred and that nothing in those provisions shall be construed as authorising the disregard by any such authority of any enactment or rule of law) shall apply to any powers conferred on any Board or new authority by any provision of this Act and to the provision of this Act conferring that power as it applies to the powers and provisions mentioned in the said section 14(6).

For the purposes of section 15 of the Act of 1962 (which confers on the Boards. . . F162 powers of compulsory purchase for the purpose of their business) activities carried on by any of the Boards. . . F162 by virtue of section 48 or subsections (1) to (7) of section 50 of this Act shall be deemed not to form part of the business of the Board. . . F162.

Sections 27, 28 and 89 of the Act of 1962 (which relate respectively to the powers of the Minister to give directions to the Boards, to powers exercisable subject to the Minister’s consent, and to the duty to give effect to the Minister’s directions) shall apply to each of the new authorities as if they were one of the Boards and, in their application to the Scottish Group, as if any reference therein to the Minister were a reference to the Secretary of State; and any reference in the said section 27 or 89 to that Act or in the said section 28 to the foregoing provisions of that Act shall include a reference to this Act.

It is hereby declared that none of the new authorities are to be regarded as the servant or agent of the Crown, or as enjoying any status, immunity or privilege of the Crown, or (subject to the provisions of sections 160, 161 and 162 of this Act) as exempt from any tax, duty, rate, levy or other charge whatsoever, whether general or local, and that their property is not to be regarded as property of, or property held on behalf of, the Crown.

In the case of any order made by virtue of paragraph (a). . . F163 of subsection (1) of this section, the property, rights and liabilities in question shall on such date as may be appointed for the purpose by the order be transferred, and by virtue of this Act vest, in accordance with the order; and Schedule 4 to this Act shall apply to any transfer under this subsection.

The Minister may, with the consent of the Treasury, pay to any person upon whom duties are imposed by virtue of subsection (3)(a) to (c) of this section such remuneration, and such allowances in respect of expenses, as the Minister may with the agreement of the Treasury determine.

On requiring any of the new authorities to make provisional payments under paragraph 2 of Schedule 2 to this Act in respect of the commencing capital debt of that new authority, the Minister may by notice in writing to the Holding Company specify what part of those payments is to be treated as attributable to transfers to that new authority from the Holding Company under section 4 or 28 of this Act; and where such notice is given, then, in respect of any period in respect of which those provisional payments are made, the liability of the Holding Company to make payments of interest under section 39(6) or 20(2) of the Act of 1962 on the commencing capital debt of, or loans to, that Company shall be correspondingly reduced.

For the purposes of any order made by virtue of paragraph (a) of subsection (5) of this section with respect to the Scottish Group, any reference in that subsection to the Minister shall be construed as a reference to the Minister and the Secretary of State acting jointly.

The power of the Minister or of the Minister and the Secretary of State acting jointly to make an order under subsection (5) of this section shall be subject to the approval of the Treasury and any such order shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament.

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F173

Subject to subsections (3) and (4) of this section, the Minister may with the approval of the Treasury make grants upon such terms and conditions as the Minister thinks fit to any person towards expenditure appearing to the Minister to be of a capital nature incurred or to be incurred by that person for the purpose of the provision, improvement or development of facilities for public passenger transport in Great Britain.

Subject to subsections (3) and (4) of this section, any local authority, or any two or more local authorities acting jointly, may make payments, upon such terms and conditions as they think fit, to any other person towards expenditure appearing to the authority or authorities in question to be of a capital nature incurred or to be incurred by that other person for the purpose of the provision, improvement or development of any facilities for public passenger transport if it appears to the authority or each of the authorities in question that those facilities are or will be of benefit to the area of that authority.

Where a relevant local authority proposes to make payments under subsection (2) of this section in respect of any facilities, that authority may enter into an agreement with the Franchising Director under which the Franchising Director undertakes to exercise franchising functions of his, to refrain from exercising such functions, or to exercise such functions in a particular manner, in relation to the use of the facilities in question.

No grant under subsection (1) of this section and no payment under subsection (2) thereof shall be made for the purposes of the provision, improvement or development of an airfield, a harbour, or (except when used or to be used for the purposes of a ferry service) a dock, pier or jetty.

Nothing in subsection (3) of this section precludes the making of grants under subsection (1) or payments under subsection (2) thereof for the purposes of the provision, improvement or development of facilities for or in connection with public passenger transport by land to or from an airfield, harbour, dock, pier or jetty.

Where a person has used or proposes to use an asset of his for the purpose of the provision, improvement or development of facilities for public passenger transport, the Minister or, as the case may be, the local authority or local authorities in question may for the purposes of this section treat as expenditure of a capital nature incurred or to be incurred by that person for that purpose such amount not exceeding the capital value of that asset as the Minister or, as the case may be, the local authority or authorities in question may determine to be appropriate.

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

In the exercise of his functions under this Part of this Act. . . F188 the licensing authority shall act under the general directions of the Minister.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F189

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F190

It is hereby declared that, for the purposes of this Part of this Act, the performance by a local or public authority of their functions constitutes the carrying on of a business.

In subsection (2)(c) and (d) of this section “established," “haulier" and “international carriage" have the same meaning as in Council Regulation (EEC) No. 881/92 of 26th March 1992 on access to the market in the carriage of goods by road within the Community to or from the territory of a member State or passing across the territory of one or more member States;

A person who uses a vehicle in contravention of this section shall be liable on summary conviction to a fine not exceeding F195level 4 on the standard scale.

A motor vehicle which, after the grant of an operator’s licence, is acquired by the holder of the licence, or comes into his possession under an agreement for hire-purchase, hire or loan, and thereupon becomes an authorised vehicle by virtue of subsection (1)(c) of this section, shall cease to be an authorised vehicle on the expiration of one month from the date on which it was acquired by him or came into his possession unless before the expiration of that period he delivers to the licensing authority a notice in such form as the authority may require to the effect that the vehicle has been acquired by him, or has come into his possession, as the case may be.

Where the licensing authority by whom a licence was granted receives a notice under subsection (3) of this section to the effect that the holder of the licence has acquired, or come into possession of, a vehicle as mentioned in that subsection, he shall, if the vehicle has become an authorised vehicle by virtue of subsection (1)(c) of this section, vary the licence by directing that the vehicle be specified therein.

A motor vehicle specified in an operator’s licence shall not, while it remains so specified, be capable of being effectively specified in any other operator’s licence.

The number of vehicles being used under an operator’s licence by virtue of section 61(1)(c) of this Act at any one time may not exceed the maximum number specified in the licence under subsection (1)(a) of this section, less however many motor vehicles are specified in the licence.

The number of trailers being used under an operator’s licence at any one time may not exceed the maximum number specified in the licence under subsection (2)(a) of this section.

Where under subsection (2)(b) of this section an operator’s licence specifies a maximum number for trailers the relevant weight of which exceeds a specified weight, the number of such trailers being used under the licence at any one time may not exceed that maximum number.

The definition of “relevant weight” in section 61(1B) of this Act applies for the purposes of this section as it applies for the purposes of section 61(1A).

If subsection (3), (4)(a) or (b), (5) or (6) of this section is contravened, the licence-holder shall be liable on summary conviction to a fine not exceeding level 4 on the standard scale.

A person may apply for an operator’s licence to the licensing authority for each area in which, if the licence is granted, the applicant will have an operating centre or operating centres; and a person may hold separate operators’ licences in respect of different areas but shall not at any time hold more than one such licence in respect of the same area.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F197

A person who knowingly fails to comply with subsection (4A) of this section shall be liable on summary conviction to a fine not exceeding F199level 4 on the standard scale, and F200section 6 of the Road Traffic Offenders Act 1988 (time for bringing summary proceedings for certain offences) shall apply in relation to an offence under this subsection as it applies in relation to the offences F201under the Road Traffic Act 1988 or the Road Traffic Offenders Act 1988 to which it is applied by virtue of F202Schedule 1 to the Road Traffic Offenders Act 1988.

Any statement or information to be given to a licensing authority under this section shall be given in such form as the authority may require.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F203

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F204

Any objection under this section shall be made within the prescribed time and in the prescribed manner (which shall be stated in the notice published under subsection (1) of this section) and shall contain particulars of the ground on which it is made.

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

F214Subject to section 69E of this ActOn an application for an operator’s licence, the licensing authority shall in every case consider whether the requirements mentioned in paragraphs (a) to (d) of subsection (2) of this section, and, if the licensing authority in any case thinks fit, paragraph (e) of that subsection, are satisfied, and in doing so shall have regard to any objection duly made under section 63 of this Act.

If the licensing authority determines that any requirement which he has taken into consideration in accordance with subsection (1) of this section is not satisfied, he shall refuse the application but, in any other case, he shall, subject to subsection (4) of this section F219and section 69B of this Act, grant the application.

In exercising his functions under this section in relation to the requirement mentioned in subsection (2)(e) thereof, a licensing authority may be assisted by an assessor drawn from a panel of persons appointed by the Minister for that purpose; and there shall be paid by the licensing authority to any such assessor in respect of his services remuneration on a scale prescribed by the Minister with the approval of the Treasury.

Subject to subsection (2) of this section and to sections 64B, 66, 69B, 69C and 89(2) of this Act, on granting an application for an operator’s licence, the licensing authority shall issue that licence in the terms applied for.

If the authority has determined that any of the requirements of section 64(3) or (4) of this Act that he has taken into consideration in accordance with section 64(1) of this Act would not be satisfied unless he exercised any of his powers under subsection (3) of this section, he shall exercise those powers accordingly.

Any undertakings taken into account by the authority under section 64(6) of this Act that he considers to be material to the granting of the application shall be recorded in the licence issued.

On varying an operator’s licence under section 68 of this Act, the licensing authority may vary or remove any condition attached to the licence under this section.

The licensing authority shall give special consideration to any representations made under subsection (3) of this section in determining whether to attach the proposed condition or make the proposed variation.

In this section as it applies in relation to England and Wales, “public road” means a highway maintainable at the public expense for the purposes of M16 the Highways Act 1980.

Any person who contravenes any condition attached under this section to a licence of which he is the holder shall be liable on summary conviction to a fine not exceeding level 4 on the standard scale.

Any person who contravenes any condition attached under this section to a licence of which he is the holder shall be liable on summary conviction to a fine not exceeding F223level 4 on the standard scale.

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

Regulations may specify the dates in the year on which operators’ licences shall expire, and, subject to subsections (4) and (5) of this section, an operator’s licence shall, unless previously revoked, F224or prematurely terminated under section 69 of this Act continue in force up till and including that one of the specified dates which occurs next before the expiration of the period of five years beginning with the date on which the licence came into force, or of such other period beginning with that date as the licensing authority may in accordance with the next following subsection direct.

If an applicant for an operator’s licence so requests, a licensing authority may, if the applicant does not hold an operator’s licence granted by that authority, grant to him, pending the determination of the application, an operator’s licence expressed to continue in force until the date on which any licence granted on the application or on an appeal arising out of it is expressed to come into force or, if no licence is granted as aforesaid, until the application is refused; and a request for the grant of a licence under this subsection shall not for the purposes of section 63 or F226subsections (1) to (3) of section 64 of this Act be treated as an application for an operator’s licence F226but shall be so treated for the purposes of section 64(4) of this Act,. . . F227

Where on any application for an operator’s licence (a “full” licence) the applicant so requests, the licensing authority may grant to him an interim licence.

An interim licence is an operator’s licence that (subject to its revocation or other termination under any provision of this Act or another statutory provision) will continue in force until it terminates under subsection (3), (4) or (5) of this section.

If neither subsection (3) nor subsection (4) of this section applies, the interim licence shall terminate on the date on which the application is finally disposed of or such earlier date as the applicant may specify in a written request to the licensing authority.

In a case within subsection (5) of this section where the application is granted, the full licence issued to the applicant shall (notwithstanding any statement in it to the contrary) be of no effect before the interim licence terminates.

A request for the grant of an interim licence shall not for the purposes of section 63, 64, 64A, 69B, 69E, 69J or 70 of, or Schedule 8A to, this Act be treated as an application for an operator’s licence, but shall be treated as such an application for any other purposes of this Part of this Act.

The licensing authority may issue an interim licence in the same terms as those applied for in relation to the full licence or in terms that differ from those terms in any of the respects mentioned in section 64A(3) of this Act.

A person applying for a direction under this section shall give to the licensing authority such information as he may reasonably require for the discharge of his duties in relation to the application.

Any information or particulars to be given to a licensing authority under subsection (2) of this section shall be given in such form as the authority may require.

If an applicant under this section so requests, the licensing authority may, pending the determination of the application, give an interim direction under this section, that is to say, a direction expressed to continue in force only until the application, and any appeal arising out of it, have been disposed of; and a request for such a direction shall not for the purposes of subsection (4) of this section be treated as an application under this section.

Where an applicant for the variation of an operator’s licence under section 68 of this Act so requests, the licensing authority may, before he has determined the application, vary the licence by giving an interim direction in respect of it.

An interim direction is a direction under section 68(1) of this Act that is expressed to continue in force until it ceases to have effect under subsection (3) or (4) of this section.

If on determining the application the licensing authority varies the licence by giving a direction in the terms applied for (and does not also under section 64B(1) or (2) or 69C(1) or (3) of this Act attach or vary any conditions), the interim direction shall cease to have effect on the date on which the direction given on the application comes into force.

If subsection (3) of this section does not apply, the interim direction shall cease to have effect on the date on which the application is finally disposed of or such earlier date as the applicant may specify in a written request to the licensing authority.

In a case within subsection (4) of this section where on determining the application the licensing authority gives a direction varying the licence, that direction shall be of no effect before the interim direction ceases to have effect.

A request for an interim direction to be given shall not for the purposes of section 68(4) or 70 of, or Schedule 8A to, this Act be treated as an application for the variation of an operator’s licence, but shall be treated as such an application for any other purposes of this Part of this Act.

In any case in which a licensing authority has power to give a direction under the foregoing subsection in respect of any licence, the authority shall also have power to direct that there be attached to the licence any, or any additional, condition such as is mentioned in section 66 of this Act.

Where the existence of any of the grounds mentioned in subsection (1) of this section is brought to the notice of the licensing authority in the case of the holder of any licence granted by him, the authority shall consider whether or not to give a direction under this section in respect of that licence.

Where the ground mentioned in subsection (1) of this section consists of a conviction mentioned in paragraph (ff) of subsection (4) of this section and there has been, within the 5 years preceding that conviction a previous conviction of the holder of the licence of the offence referred to in that paragraph, the licensing authority shall give a direction under this section to revoke the licence.

The powers conferred by subsections (5) and (6) of this section in relation to the person who was the holder of a licence shall be exercisable also, where that person was a company, in relation to any director of that company, and, where that person operated the authorised vehicles in partnership with other persons, in relation to any of those other persons.

A licensing authority who has made an order or given a direction under subsection (5), (6) F259(7) or (7A) of this section may, in such circumstances as may be prescribed, cancel that order or direction.

The licensing authority may direct that any direction or order given or made by him under subsection (1), (2), (5), (6) F261(7) or (7A) of this section shall not take effect until the expiration of the time within which an appeal may be made to the Transport Tribunal against the direction or order and, if such an appeal is made, until the appeal has been disposed of; and if the licensing authority refuses to give a direction under this subsection the holder of the licence, or, as the case may be, the person in respect of whom the direction or order was given or made under any of those subsections, may apply to the tribunal for such a direction, and the tribunal shall give its decision on the application within fourteen days.

For the purposes of this section a person holds a controlling interest in a company if he is the beneficial owner of more than half its equity share capital as defined in F262section 744 of the Companies Act 1985.

A person may not use a place in the area of any licensing authority as an operating centre for authorised vehicles under any operator’s licence granted to him by that authority unless it is specified in that licence.

A person applying for an operator’s licence shall give to the licensing authority a statement giving such particulars as the authority may require of each place in the area of the authority which will an operating centre of the applicant if the licence is granted.

Without prejudice to section 62(4) of this Act, a person applying for an operator’s licence shall also, if he is required by the licensing authority so to do, give to him such particulars as he may require with respect to the use which the applicant proposes to make, for authorised vehicles under the licence, of any place referred to in the statement under subsection (2) of this section.

Any person who contravenes subsection (1) of this section shall be liable on summary conviction to a fine not exceeding F264level 4 on the standard scale.

Any person entitled by virtue of section 63(3) of this Act to object to the grant of any application for an operators’ licence on the ground there mentioned may also object to the grant of any such application on the ground that any place which, if the licence is granted, will be an operating centre of the holder of the licence is unsuitable on environmental grounds for use as such.

In the case of any such application, any person who is the owner or occupier of land in the vicinity of any place which, if the licence is granted, will be an operating centre of the holder of the licence may make representations against the grant of the application on the ground that the place is unsuitable on environmental grounds for use as such, provided that any adverse effects on environmental conditions arising from that use would be capable of prejudicially affecting the use or enjoyment of the land.

Where any objection or representations are duly made under this section in respect of any application for an operators’ licence, the licensing authority may in any case refuse the application on the ground that the parking of authorised vehicles under the licence at or in the vicinity of any place which, if the licence were granted, would be an operating centre of the holder of the licence would cause adverse effects on environmental conditions in the vicinity of that place.

Where any objection or representations are duly so made in respect of any such application, the licensing authority may refuse the application, subject to subsection (5) of this section, on the ground that any place which, if the licence is unsuitable for use as such on environmental grounds other than the ground mentioned in subsection (3) of this section.

A request for the grant of a licence under section 67(5) of this Act pending the determination of a current application for an application for an operator’s licence for the purposes of this section, but in granting a licence under section 67(5) a licensing authority may specify in the licence such place or places referred to in the statement given to the authority given to the authority by the applicant under section 69A(2) of this Act as the authority thinks fit.

Subject to the following provisions of this section, a licensing authority may attach such conditions to an operator’s licence as appear to him to be appropriate for the purpose of preventing or minimising any adverse effects on environmental conditions arising from the use for authorised vehicles under the licence in the area of the authority.

Subject to subsection (4) of this section, the licensing authority by whom an operator’s licence was granted may at any time vary or remove any condition attached to the licence under this section.

The power to attach a condition to an operator’s licence under this section shall be exercisable by a licensing authority on granting the licence; and that power, and the power to vary or remove any condition so attached, shall also be exersisable in accordance with section 69D of this Act on an application by the holder for variation of the licence.

Where a licensing authority is precluded by section 69B(5) of this Act from refusing an application for an operator’s licence, the authority may not attach any condition to the licence under this section without first giving the applicant for the licence an opportunity to make representations to the authority with respect to the effect on his business of any condition the authority proposes to attach; and where the applicant makes any such representations the authority shall give special consideration to those representations in determining whether to attach the proposed condition on granting the licence.

Any person who contravenes any condition attached under this section to a licence of which he is the holder shall be liable on summary conviction to a fine not exceeding F267level 4 on the standard scale.

A person applying for the variation of an operator’s licence under this section shall give to the licensing authority such information as he may reasonably require for the discharge of his duties in relation to the application.

The licensing authority shall publish in the prescribed manner notice of any application for a variation under this section, unless the licensing authority is satisfied that the application is of so trivial a nature that it is not necessary that an opportunity should be given for objecting to it or making representations against it.

A person may not be virtue of subsection (5) of this section make representations against the grant of an application for variation of an operator’s licence unless any adverse effects on environmental conditions arising from the use of the place or operating centre in question would be capable of prejudicially affecting the use or enjoyment of the land there mentioned.

Where any objection or representations are duly made under this section in respect of any application for a variation of an operator’s licence, the licensing authority may refuse the application in any case where it appears to him that the application ought to be refused on either of the grounds mentioned in subsection (4) of this section.

In any case in which the licensing authority grants an application for a variation of an operator’s licence of which notice has been published under section 68(4) of this Act or under subsection (3) of this section, the licensing authority may direct that any condition attached to the licence under section 69C of this Act shall be varied or removed or that a condition shall be attached to the licence under that section.

If an applicant under this section so requests, the licensing authority may, pending the determination of the application, give an interim direction under subsection (1) or (8) of this section, that is to say, a direction expressed to continue in force only until the application, and any appeal arising out of it, have been disposed of; and a request for such a direction shall not for the purposes of subsection (3) to (7) of this section be treated as an application for a variation under this section.

The period referred to in subsection (1) of this section is the period beginning twenty-one days before the date on which the application is made and ending twenty-one days after that date.

For the purposes of this section a locality shall be taken to be affected by an application to a licensing authority for, or for the variation of, an operator’s licence if it contains any place in the area of the authority which will be an operating centre of the holder of the licence if the application is granted, or (in the case of an application for variation) any existing operating centre of the holder of the licence to which the application relates.

Within such time after any period of review as may be prescribed, the licensing authority by whom an operator’s licence was granted may serve a notice on the licence-holder stating that the authority is considering whether to exercise any of his powers under sections 69EB and 69EC of this Act in relation to a place specified in the licence as an operating centre of the licence-holder.

Regulations may amend subsection (2) of this section by substituting a higher or lower number (but not a number lower than five) for the number of years currently mentioned in paragraphs (a) and (b).

Regulations may make provision as to the manner in which notices under this section are to be or may be served, including provision as to the circumstances in which and time at which any such notice is to be treated as having been duly served (whether or not it has in fact been served).

The ground referred to in subsection (1)(b) of this section is that the parking of vehicles used under the licence at or in the vicinity of the place causes adverse effects on environmental conditions in that vicinity.

Representations made by a person such as is mentioned in subsection (3)(b) of this section shall be disregarded for the purposes of this section if, when they were made, any adverse effects on environmental conditions arising from the continued use of the place in question would not have been capable of prejudicially affecting the use or enjoyment of the land mentioned in subsection (3)(b).

Any conditions attached to the licence under subsection (1)(a) of this section shall relate (or in the case of conditions such as are mentioned in section 66(1)(c) of this Act, only require the authority to be informed of events that relate) only to the place referred to in subsection (1) of this section (or only to that place and any other places in respect of which the authority has power to attach conditions under that subsection).

Any variation under subsection (1)(b) of this section shall be such as imposes new or further restrictions or requirements in relation to that place, and only that place (or only that place and any other such places).

In this Part of this Act any reference, in relation to an operator’s licence, to a condition attached to the licence under section 64B, 66, or 69C of this Act includes any condition such as is mentioned in section 64B, 66 or (as the case may be) 69C that was attached to the licence under subsection (1)(a) of this section.

Subject to subsection (2) of this section, the licensing authority by whom an operator’s licence was granted may direct that it be revoked, suspended, terminated on a date earlier than that on which it would otherwise expire under section 67 of this Act, or curtailed on the ground that the holder of the licence has contraved section 69A of this Act or any condition attached to his licence under section 69C of this Act; and during any time of suspension the licence shall be of no effect.

Section 69 of this Act shall apply as if the power to give a direction under subsection (1) of this section and the ground there mentioned were respectively conferred by and mentioned in subsection (1) of that section.

Any objection or representations under section 69B or 69D of this Act shall contain particulars of any matters alleged by the person making the objection or representations to be relevant to the determination of the licensing authority to which the objections or representations relate; and the onus of proof of any matters so alleged shall lie on the person making the objection or representations.

Any statement or information to be given to a licensing authority under section 69A or 69D of this Act shall be given in such form as the authority may require.

For the purposes of sections 69D(5)(b) and 69(3) of this Act an application for a variation of an operator’s licence shall be taken to relate to an operating centre of the holder of the licence if any

In making any determination of a description mentioned in subsection (2) of this section, the licensing authority shall have regard to such considerations as may be prescribed as relevant to determinations of that description.

In making for those purposes a determination of a description mentioned in subsection (2)(a) or (c) of this section, the licensing authority may take into account any conditions such as are mentioned in section 69C of this Act that could be attached to the licence in question, and may assume that any conditions so attached will not be contravened.

In considering any financial question which appears to him to arise in relation to the exercise of his functions under this Part of this Act or M26 the Goods Vehicles (Operators’ Licences, Qualifications and Fees) Regulations 1984, the licensing authority may be assisted by an assessor drawn from a panel of persons appointed for that purpose by the Secretary of State.

The Secretary of State shall pay to any such assessor in respect of his services such remuneration as may be determined by the Secretary of State with the consent of the Treasury.

Regulations may make provision as to the manner in which notices under subsection (2)(a) of this section are to be or may be served, including provision as to the circumstances in which and time at which any such notice is to be treated as having been duly served (whether or not it has in fact been served).

The variation or revocation of a decision under this section shall not make unlawful anything done in reliance on the decision before the variation or revocation takes effect.

No appeal shall lie under the foregoing subsection on the ground that a direction has been given under subsection (3) of section 67 of this Act if it has been given by virtue of paragraph (b) of the said subsection (3).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F284

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Subject to subsection (2) of this section, no goods shall be carried on a large goods vehicle unless a document (in this section referred to as a “consignment note”) in the prescribed form and containing the prescribed particulars has been completed and signed in the prescribed manner and is carried by the driver of the vehicle.

The consignment note relating to the goods carried by a vehicle on any journey shall, at the conclusion of that journey, be preserved for the prescribed period by the person who used the vehicle. . . F289 for carrying the goods on that journey.

Any person who uses or drives a vehicle in contravention of subsection (1) of this section or who fails to comply with subsection (3) thereof shall be liable on summary conviction to a fine not exceeding F290level 4 on the standard scale.

For the purpose of exercising his powers under subsection (1)(a) or (2)(a) of this section, an officer may detain the vehicle in question during such time as is required for the exercise of that power.

An officer may, at any time which is reasonable having regard to the circumstances of the case, enter any premises of an applicant for an operator’s licence or of the holder of such a licence and inspect any facilities on those premises for maintaining the authorised vehicles in a fit and serviceable condition.

Any proceedings in Scotland under the last foregoing subsection shall be taken by way of summary application in the sheriff court; and in the application of that subsection to Scotland references to costs shall be construed as references to expenses.

In this section “officer” means an examiner appointed under F294section 66A of the Road Traffic Act 1988 and any person authorised for the purposes of this section by the licensing authority for any area.

The powers conferred by this section on an officer as defined in subsection (8) of this section shall be exercisable also by a police constable who shall not, if wearing uniform, be required to produce any authority.

Regulations under this section may modify or supplement any of the provisions of this Part of this Act or F299Schedule 10 thereto so far as appears to the Minister to be necessary or expedient for the purpose mentioned in subsection (1) of this section or in connection therewith, and may contain such other supplementary and incidental provisions as appear to the Minister to be requisite.