All rights which are presently vested in F1regional or islands councils in relation to ferries, all functions relating thereto, and all liabilities to which those authorities are subject in that connection, are hereby transferred to the F2. . . council within whose area the ferry is situated.

A F3. . . council or any two or more F4. . . councils acting in combination may acquire, provide, maintain, improve and operate any ferry situated wholly or partly within their area or areas, but F4. . . a council or councils acting in combination may only exercise those powers as respects a ferry situated partly within their area or areas and partly within the area of another such council if the agreement of that other council has first been obtained.

If in any year the revenue received by a council, or by two or more councils acting in combination, in respect of a ferry operated by virtue of this section is insufficient to defray the expenditure incurred in operating and maintaining in an efficient state any such ferry and any sums required to meet interest, sinking fund or other loan charges, the deficiency shall be met out of rates by the council in whom the ferry is vested, or in the case of a ferry vested in two or more councils in combination, by those councils in such proportions as may be fixed by the combination agreement.

In this section F7—

• F7“council” means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994; and

• “ferry” includes all rights pertaining thereto (including rights of access) and all boats, vessels, landing stages, plant and apparatus used in connection with the ferry, but does not include a harbour transferred by virtue of section 154 of this Act.