A Passenger Transport Executive and a district council or, in Scotland, F1council (other than the council for Orkney Islands, Shetland Islands or Western Isles)a shall each have power to enter into an agreement with any associated company, or with any subsidiary of an associated company, for the provision by that Executive or council for that company or (as the case may be) for that subsidiary of any administrative, professional or technical services.

Any agreement under this section shall include provision for payment of proper commercial charges in respect of services to be provided under the agreement.