An Executive shall so perform their functions as to ensure so far as practicable that the combined revenues of the Executive and any subsidiaries of theirs for any accounting period are not less than sufficient to meet their combined charges properly chargeable to revenue account in that period.

If in the case of any accounting period it is not practicable for an Executive to ensure that those revenues are sufficient to meet those charges, subsection (1) above shall have effect in relation to the next following accounting period as if the combined charges there referred to included an amount equal to the amount of the deficit.

For the purposes of this section there shall be disregarded any deficit or potential deficit in an accounting period to the extent to which it is or is to be covered by the appropriation of any reserves of the Executive available for the purpose if the appropriation of those reserves for that purpose has been proposed by the Executive F7. . . and approved by the Authority F8. . ..

An Authority in exercising or performing any of their functions F9. . . shall have regard to the duty imposed on an Executive by this section.

In this section “subsidiary” has the meaning given by section 92(1) of the M2Transport Act 1962, . . . F10

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F15

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Before giving or withholding any approval required by section 15(2)(a) of the Act of 1968 . . . F16 the Authority shall have regard in particular to the extent to which their decision will affect the amount of revenue grants that will be needed to enable the Executive to comply with their duty under section 2 above and to the need to achieve a proper balance between the interests of the ratepayers in their area and the interests of transport users.

An Authority shall, whenever the Secretary of State so requires, cause a review to be made of the organisation of the Executive for the purpose of determining whether, in the interests of managing the activities of the Executive in the most efficient manner, any particular activities of the Executive should be managed as separate units with separate accounts.

The Authority shall inform the Executive in writing of the results of any such review and of the Authority’s conclusions arising from it; and the report under section 16 of the Act of 1968 . . . F17 for the accounting period of the Executive in which they are so informed shall contain a statement showing the steps they have taken or propose to take in the light of the Authority’s conclusions.

Nothing in this section affects the power of an authority to cause reviews to be made of the organisation of an Executive under section 15A(3) of the Act of 1968 . . . F17.

An Executive shall, in the case of such activities carried on by the Executive as they may determine to be apppropriate, invite other persons to submit tenders to carry on those activities for such period and on such basis as the Executive may specify in the invitation to tender.

If the Authority so direct, the Executive shall invite tenders to carry on, for such period and on such basis as may be specified in the direction, such activities or descriptions of activities carried on by the Executive as may be so specified.

An Executive shall accept a tender invited pursuant to this section if it appears to them that to do so would result in the relevant activities being carried on in a satisfactory manner and at less cost to them than if they were to continue to carry on those activities themselves.

Any direction under subsection (2) above shall be in writing and it shall be the duty of the Executive to give effect to it.

Every report under section 16 of the Act of 1968 . . . F18 for an accounting period of an Executive shall contain a statement showing the steps which the Executive have taken in that period to comply with the requirements of subsections (1) and (2) above.

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The enactments mentioned in the Schedule to this Act are hereby repealed to the extent specified in the third column of that Schedule.

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In section 15(5) of the Act of 1968 (expenditure by an Authority in performing their functions) the reference to Part II of that Act shall include a reference to this Part of this Act.

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An Authority shall not make any revenue grant in the year beginning on 1st April 1983 except in accordance with a determination made by them after the passing of this Act as to the amount of the revenue grants to be made by them in that year; and no such determination shall be made by an Authority unless they have been given guidance by the Secretary of State in relation to the determination and that guidance is taken into account by them in making the determination.

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For the purposes of section 2 above in its application to an accounting period of an Executive ending before 1st April 1984 there shall be disregarded any deficit or potential deficit to the extent to which it is or is to be covered by the appropriation of any reserves of the Executive available for the purpose if, at any time before or after the passing of this Act but before the Secretary of State gives his guidance to the Authority under subsection (2) above, the Executive have notified the Secretary of State of their intention to appropriate those reserves for that purpose.