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(1)All rights which are presently vested in local authorities 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 regional or islands council within whose area the ferry is situated.
(2)A regional or islands council or any two or more such councils acting in combination may acquire, provide, maintain, improve and operate any ferry situated wholly or partly within their area or areas, but such 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.
(3)A regional or islands council or any two or more such councils acting in combination may
(a)incur capital expenditure and borrow money for the purposes of exercising their powers under subsection (2) above;
(b)lease or hire a ferry to or from another person on such conditions as they think fit;
(c)enter into arrangements with another person for the operation of a ferry by that person on their behalf; and
(d)from time to time fix fares and charges for the use of any ferry operated by virtue of this section, and adequate publicity as to those fares and charges shall be given by them within their area.
(4)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.
(5)In this section " 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.
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