Transport Act 2000

Bus services: quality contracts schemes E+W

124 Quality contracts schemes. E+W

(1) A local transport authority, or two or more such authorities acting jointly, may make a quality contracts scheme covering the whole or any part of their area, or combined area, if they are satisfied that—

(a) making a quality contracts scheme is the only practicable way of implementing the policies set out in their bus strategy or strategies in the area to which the proposed scheme relates, and

(b) the proposed scheme will implement those policies in a way which is economic, efficient and effective.

[F1 (1A) [F2 An Integrated Transport Authority], or [F3 an Integrated Transport Authority] jointly with one or more other local transport authorities, may also make a quality contracts scheme covering the whole or part of their area or combined area if they are satisfied—

(a) that making a quality contracts scheme is an appropriate way of securing that the transport needs of the potential users of a relevant railway service that has been or is to be reduced or discontinued are met;

(b) that the making of the scheme will contribute, in an appropriate way, to meeting the transport needs of other persons living, working or studying in the localities served by that service;

(c) that the scheme is compatible with the [F4 local transport policies] of [F5 the Integrated Transport Authority] who make the scheme or (as the case may be) of each of the authorities who join in making the scheme; and

(d) that the scheme will meet the needs of the persons mentioned in paragraphs (a) and (b) in a way which is economic, efficient and effective.

(1B) A local transport authority may join in making a scheme under subsection (1A) by reference to the reduction or discontinuance of a railway passenger service only if—

(a) they are the [F6 Integrated Transport Authority], or one of the [F7 Integrated Transport Authorities], by reference to which that service is a relevant railway service in relation to the scheme;

(b) the relevant railway service by reference to which the scheme is made is or was operating in the authority's area; or

(c) the persons who live, work or study in localities served by that service include persons living, working or studying in that area.]

(2) A quality contracts scheme may not be made unless the authority or authorities—

(a) have complied with the notice and consultation requirements imposed by section 125, and

(b) have obtained the approval of the appropriate national authority in accordance with section 126.

(3) A quality contracts scheme is a scheme under which—

(a) the authority or authorities determine what local services should be provided in the area to which the scheme relates and any additional facilities or services which should be provided in that area, and

(b) local services may only be provided in that area in accordance with quality contracts (subject to section 127(4)).

(4) In this Part “quality contract”, in relation to a quality contracts scheme, means an agreement entered into under section 130 or 131 under which—

(a) the authority or authorities grant to another person the exclusive right to operate the local services to which the contract relates, and

(b) that person undertakes to provide the services on such terms (including in particular as to frequency, fares and standard of service) as may be specified in the agreement.

(5) A quality contract may be made on terms—

(a) which include provision for the making of payments by the authority or authorities to the person undertaking to provide the local service, and

(b) requiring one or more of the parties to provide additional facilities or services.

(6) Section 88(1) of the M1 Transport Act 1985 (application to subsidy agreements of sections 89 to 92 of that Act) does not apply in relation to quality contracts.

(7) The authority or authorities must keep under review the extent to which quality contracts entered into by them are complied with.

(8) In carrying out their functions under this Part in relation to quality contracts schemes, local transport authorities must co-operate with one another.

(9) In considering whether to make a quality contracts scheme, a local transport authority must have regard to the desirability, in appropriate cases, of making a scheme jointly with another authority.

F8 [F9 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) In this section “relevant railway service”—

(a) in relation to a scheme made by a single [F10 Integrated Transport Authority] acting alone, means—

(i) a railway passenger service operating entirely within the area of that Authority; or

(ii) the part of a railway passenger service so operating;

(b) in relation to a scheme made jointly by more than one local transport authority, means—

(i) a railway passenger service operating wholly or primarily within the area of [F11 an Integrated Transport Authority] who join in making the scheme;

(ii) a railway passenger service operating wholly or primarily within the combined area of two or more [F12 Integrated Transport Authorities] who join in making the scheme; or

(iii) the part of a railway passenger service operating as mentioned in sub-paragraph (i) or (ii).

(12) In this section—

“potential users”, in relation to a relevant railway service, means persons who (but for the reduction or discontinuance of the service) would have made use of it; and

“railway passenger service” has the same meaning as in the Railways Act 1993 (c. 43) (see section 83(1) of that Act).

(13) For the purposes of references in this section to where a railway passenger service or part of such a service operates—

(a) a service shall be treated as operating at each of the places where stops are made at stations for the purpose of allowing passengers to join or leave the service; and

(b) a part of a service is any part of that service so far as it operates at any one or more of those places.]

Textual Amendments

F1 S. 124(1A)(1B) inserted (1.12.2006) by Railways Act 2005 (c. 14), ss. 39(1), 60(2); S.I. 2006/2911, art. 2, Sch.

F2 Words in s. 124(1A) substituted (9.2.2009) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 4 para. 43(2)(a); S.I. 2009/107, art. 2(1), Sch. 1 Pt. 1

F3 Words in s. 124(1A) substituted (9.2.2009) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 4 para. 43(2)(b); S.I. 2009/107, art. 2(1), Sch. 1 Pt. 1

F4 Words in s. 124(1A)(c) substituted (9.2.2009 for E., 1.4.2009 for W.) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 1 para. 2(2); S.I. 2009/107, art. 2(2), Sch. 2 Pt. 1; S.I. 2009/579, art. 2(a)

F5 Words in s. 124(1A) substituted (9.2.2009) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 4 para. 43(2)(c); S.I. 2009/107, art. 2(1), Sch. 1 Pt. 1

F6 Words in s. 124(1B) substituted (9.2.2009) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 4 para. 43(3)(a); S.I. 2009/107, art. 2(1), Sch. 1 Pt. 1

F7 Words in s. 124(1B) substituted (9.2.2009) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 4 para. 43(3)(b); S.I. 2009/107, art. 2(1), Sch. 1 Pt. 1

F8 S. 124(10) repealed (9.2.2009 for E., 1.4.2009 for W.) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 1 para. 2(3), Sch. 7 Pt. 1; S.I. 2009/107, art. 2(2), Sch. 2 Pt. 1; S.I. 2009/579, art. 2(a)

F9 S. 124(10)-(13) inserted (1.12.2006) by Railways Act 2005 (c. 14), ss. 39(2), 60(2); S.I. 2006/2911, art. 2, Sch.

F10 Words in s. 124(11) substituted (9.2.2009) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 4 para. 43(4)(a); S.I. 2009/107, art. 2(1), Sch. 1 Pt. 1

F11 Words in s. 124(11) substituted (9.2.2009) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 4 para. 43(4)(b); S.I. 2009/107, art. 2(1), Sch. 1 Pt. 1

F12 Words in s. 124(11) substituted (9.2.2009) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 4 para. 43(4)(c); S.I. 2009/107, art. 2(1), Sch. 1 Pt. 1

Modifications etc. (not altering text)

C1 S. 124 applied (with modifications) (1.2.2005) by The Local Authorities' Plans and Strategies (Disapplication) (England) Order 2005 (S.I. 2005/157), art. 1, Sch. 2 para. 6 (with art. 7(4))

Commencement Information

I1 S. 124 partly in force; s. 124 not in force at Royal Assent see s. 275(1)(2); s. 124 in force for specified purposes (W.) at 1.8.2001 by S.I. 2001/2788, art. 2, Sch. 1 para. 3; s. 124 in force (E.) at 26.10.2001 by S.I. 2001/3342, art. 2, Sch.

Marginal Citations

M1 1985 c. 67.

125 Notice and consultation requirements. E+W

(1) If an authority or authorities propose to make a quality contracts scheme, they must give notice of the proposed scheme in at least one newspaper circulating in the area to which it relates.

(2) The notice must—

(a) describe the proposed scheme,

(b) state where a copy of the scheme may be inspected, and

(c) state their reasons for wishing to make the scheme.

(3) After giving notice of the proposed scheme, the authority or authorities must consult—

(a) all persons operating local services in the area to which it relates,

(b) all other persons holding a PSV operator’s licence or a community bus permit who would, in the opinion of the authority or authorities, be affected by it,

(c) such organisations appearing to the authority or authorities to be representative of users of local services as they think fit,

(d) any other relevant local authority any part of whose area would, in the opinion of the authority or authorities, be affected by it,

(e) the traffic commissioner for each traffic area covering the whole or part of the area to which it relates,

(f) the chief officer of police for each police area covering the whole or part of that area, and

(g) such other persons as the authority or authorities think fit.

(4) For the purpose of subsection (3)(d) the following are relevant local authorities—

(a) local transport authorities,

(b) district councils in England,

(c) London transport authorities, and

(d) councils in Scotland.

(5) The authority or authorities may modify the proposed scheme following those consultations.

Commencement Information

I2 S. 125 partly in force; s. 125 not in force at Royal Assent see s. 275(1)(2); s. 125 in force for specified purposes (W.) at 1.8.2001 by S.I. 2001/2788, art. 2, Sch. 1 para. 3; s. 125 in force (E.) at 26.10.2001 by S.I. 2001/3342, art. 2, Sch.

126 Approval of proposed scheme. E+W

(1) If, having complied with section 125, the authority or authorities wish to proceed with the proposed scheme, they must apply to the appropriate national authority for its approval.

(2) The application must include—

(a) their reasons for wishing to make the scheme, and

(b) such other information as the appropriate national authority may reasonably require.

(3) Any person consulted under section 125(3) may make written representations to the appropriate national authority about the scheme.

(4) The appropriate national authority may approve the proposed scheme, with or without modifications, if it is satisfied that—

(a) the conditions set out in paragraphs (a) and (b) of section 124(1) [F13 or (as the case may be) paragraphs (a) to (d) of section 124(1A)] are met, and

(b) it is in the interests of the public that the scheme is made.

(5) If the appropriate national authority proposes to approve the scheme with modifications, it must first inform the authority or authorities and they must—

(a) consult such of the persons they consulted under section 125(3) as would, in their opinion, be affected by those modifications, and

(b) inform the appropriate national authority as to the outcome of that consultation.

(6) After being informed of that outcome the appropriate national authority may approve the scheme either with those modifications or without modifications.

Textual Amendments

F13 Words in s. 126(4) inserted (1.12.2006) by Railways Act 2005 (c. 14), ss. 39(3), 60(2); S.I. 2006/2911, art. 2, Sch.

Commencement Information

I3 S. 126 partly in force; s. 126 not in force at Royal Assent see s. 275(1)(2); s. 126 in force for specified purposes (W.) at 1.8.2001 by S.I. 2001/2788, art. 2, Sch. 1 para. 3; s. 126 in force (E.) at 26.10.2001 by S.I. 2001/3342, art. 2, Sch.

[F14 126B Advice by boards or their Commissioners E+W

(1) This section applies at any time after the traffic commissioner who is to chair the QCS board for the proposed scheme has been designated under section 126A.

(2) The QCS board may give advice about matters of a procedural nature to any person who requests it before the end of the appropriate period.

(3) For the purposes of subsection (2), the end of the appropriate period is—

(a) the date on which a scheme is made, or

(b) if no scheme is made, the date on which the authority or authorities give notice to the board under section 126C(7) that they have decided not to proceed with the proposed scheme.

(4) The board may not, under subsection (2), give advice about the merits of the proposed scheme.

(5) If the Secretary of State thinks it appropriate to do so in connection with securing propriety in the giving of advice under subsection (2), the Secretary of State may by regulations make provision about the giving of advice under that subsection (but not about what the advice is to be).

(6) In particular, regulations under subsection (5) may make provision that has the effect that—

(a) a person's request for advice under subsection (2), or

(b) advice given under subsection (2) to a person,

must be, or may be, disclosed by the board to persons other than that person or to the public generally.

(7) In relation to requests received at any time before the members of the board have been designated, the functions of the board under this section are exercisable on behalf of the board by the traffic commissioner who has been designated to chair the board.]

Textual Amendments

F14 S. 126B inserted (26.11.2008 for specified purposes, 11.1.2010 for E. in so far as not already in force) by Local Transport Act 2008 (c. 26), ss. 23, 134(1)(c)(4); S.I. 2009/3242, art. 2(1)(a)

[F15 126E Practice and procedure of boards E+W

(1) The Secretary of State may make regulations—

(a) with respect to the constitution of a QCS board,

(b) with respect to the powers and duties of any such board,

(c) governing the practice and procedure to be followed by any such board, and

(d) generally for the carrying into effect of the powers and duties of any such board.

(2) The provision that may be made by regulations under subsection (1) includes—

(a) provision about requests under section 126C(4);

(b) provision for an acknowledgement of the receipt of any such request to be issued by such person, and within such time, as may be prescribed in the regulations;

(c) the procedure to be followed in cases where a further request under section 126C(4) is sent to the QCS board by virtue of section 126C(6) in relation to a proposed scheme which has been modified (the “modified scheme”);

(d) provision for or in connection with the making of representations about the modified scheme;

(e) the publication by the board of provisional findings before it publishes its report.

(3) Regulations may prescribe the time within which the Secretary of State considers that any QCS board should normally have published its report.

(4) It is the duty of a QCS board to take all reasonable steps to publish its report within that time.

(5) If a QCS board does not publish its report within that time, the Commissioner must immediately prepare a statement of—

(a) the reasons why the board has not published its report within that time;

(b) the action the board is taking to publish its report as soon as reasonably practicable;

(c) the time within which it is expected that the board will publish its report.

(6) As soon as reasonably practicable after the statement required by subsection (5) has been prepared, the Commissioner must send a copy of it to each of the following—

(a) the Secretary of State;

(b) the authority or authorities proposing to make the scheme.

(7) The Secretary of State may issue guidance concerning the carrying out by a QCS board of its functions under this Part in relation to quality contracts schemes.

(8) A QCS board must have regard to any such guidance.

(9) In this section—

• “the Commissioner” has the same meaning as in section 126A;

• “regulations” means regulations made by the Secretary of State;

• “report” means the report which the board is required to publish by virtue of section 126D(5).]

Textual Amendments

F15 S. 126E inserted (26.11.2008 for specified purposes, 11.1.2010 for E. in so far as not already in force) by Local Transport Act 2008 (c. 26), ss. 25, 134(1)(c)(4); S.I. 2009/3242, art. 2(1)(a)

127 Making of scheme. E+W

(1) If the appropriate national authority approves the scheme, the authority or authorities who proposed it may make it as approved at any time not later than six months after the date of the approval.

(2) The scheme must specify—

(a) the area to which it relates,

(b) the date on which it is to come into operation, which must not be earlier than 21 months after the date on which it is made, and

(c) the period for which it is to remain in operation, which must not be more than ten years.

(3) The scheme must outline—

(a) the local services which are to be provided under quality contracts, and

(b) the features of the proposed invitations to tender for quality contracts.

(4) The scheme may provide that—

(a) local services specified in it, or

(b) local services of a class specified in it,

are to be excluded from the scheme, subject to such conditions (if any) as may be specified in it.

(5) The scheme may contain such ancillary provisions as the authority or authorities think fit.

(6) The scheme may include provision—

(a) varying or revoking any quality partnership scheme which only relates to the area of the authority, or combined area of the authorities, by which the scheme is made, or

(b) varying any other quality partnership scheme to the extent that it so relates.

(7) If provision is made under subsection (6)(b) to vary the quality partnership scheme so that it no longer so relates, such of the authorities by which it was made as did not make the quality contracts scheme—

(a) may (subject to the provision so made) vary it if they decide that it is appropriate to do so, or

(b) may revoke it if all persons who have given an undertaking to provide a service to a standard specified in the scheme consent to the revocation of the scheme (which consent must not be unreasonably withheld);

and subsections (3) and (4) of section 120 apply to a variation or revocation under this subsection.

(8) Not later than 14 days after the date on which the scheme is made, the authority or authorities must—

(a) give notice in at least one newspaper circulating in the area to which the scheme relates, and

(b) send a copy of the scheme to the traffic commissioner for each traffic area covering the whole or part of that area.

(9) The notice must state—

(a) that the scheme has been made,

(b) where a copy of the scheme may be inspected, and

(c) the date on which the scheme is to come into operation.

[F16 (10) The appropriate national authority may by order vary any of the periods mentioned in subsection (1A), (1B) or (2A).]

Textual Amendments

F16 S. 127(10) substituted (26.11.2008 for specified purposes, 11.1.2010 for E. in so far as not already in force) by Local Transport Act 2008 (c. 26), ss. 26(8), 134(1)(c)(4); S.I. 2009/3242, art. 2(1)(a)

Modifications etc. (not altering text)

C2 S. 127(2)(b) modified (1.3.2005) by The Transport Act 2000 (Commencement of Quality Contracts Schemes) (England) Order 2005 (S.I. 2005/75), arts. 1, 2

Commencement Information

I4 S. 127 partly in force; s. 127 not in force at Royal Assent see s. 275(1)(2); s. 127 in force for specified purposes (W.) at 1.8.2001 by S.I. 2001/2788, art. 2, Sch. 1 para. 3; s. 127 in force (E.) at 26.10.2001 by S.I. 2001/3342, art. 2, Sch.

128 Postponement of scheme. E+W

(1) If it appears to the authority or authorities who made the scheme appropriate to do so, they may decide that the date on which the scheme would otherwise come into operation shall be postponed by such period as they think fit (subject to any provision of regulations made under subsection (4)).

(2) Before making such a decision they must consult all operators of local services who would, in their opinion, be affected by the decision.

(3) Not later than 14 days after the date on which any such decision is made they must give notice of the decision—

(a) in at least one newspaper circulating in the area to which the scheme relates, and

(b) to all operators of local services who would, in their opinion, be affected by the decision and the traffic commissioner for each traffic area covering the whole or part of the area to which the scheme relates.

(4) The appropriate national authority may by regulations make provision with respect to postponements under subsection (1).

(5) The regulations may in particular make provision—

(a) as to the maximum period of postponements, and

(b) requiring authorities to re-issue invitations to tender in accordance with section 130.

Commencement Information

I5 S. 128 partly in force; s. 128 not in force at Royal Assent see s. 275(1)(2); s. 128(4) wholly in force and s. 128(1)-(3)(5) in force for specified purposes (W.) at 1.8.2001 by S.I. 2001/2788, art. 2, Sch. 1 paras. 2, 3; s. 128 in force (E.) at 26.10.2001 by S.I. 2001/3342, art. 2, Sch.

129 Effect of scheme. E+W

(1) During any period in which the scheme is in operation—

(a) sections 6 to 9 of the M2 Transport Act 1985 (registration of local services) do not have effect in relation to the area to which it relates, and

(b) no local service shall be provided in that area (if there is a stopping place for the service in that area) unless it is provided under a quality contract.

(2) But subsection (1) does not apply in relation to services which are excluded from the scheme as a result of any provision of the scheme made in accordance with section 127(4).

(3) Where the exclusion of a local service from the scheme is made subject to conditions as a result of such a provision, those conditions are to be treated, during any period in which the scheme is in operation, as if they were prescribed particulars registered under section 6 of the M3 Transport Act 1985 of the service concerned.

(4) The authority or authorities must invite tenders in accordance with section 130 not later than—

(a) three months, or

(b) such other period as the appropriate national authority may by order specify,

after the scheme has been made.

Commencement Information

I6 S. 129 partly in force; s. 129 not in force at Royal Assent see s. 275(1)(2); s. 129 in force for specified purposes (W.) at 1.8.2001 by S.I. 2001/2788, art. 2, Sch. 1 para. 3; s. 129 in force (E.) at 26.10.2001 by S.I. 2001/3342, art. 2, Sch.

Marginal Citations

M2 1985 c. 67.

M3 1985 c. 67.

130 Tendering for quality contracts. E+W

(1) The authority, or the authorities acting jointly, must invite tenders for the provision of services to which the scheme relates for such period and on such basis as may be specified in the invitation to tender.

(2) The period specified must not exceed five years.

(3) Subject to subsection (4), such an invitation—

(a) must be issued generally, in such manner as the authority or authorities consider appropriate for bringing it to the attention of persons who may be interested, and

(b) must also be issued individually to all persons who have given to that authority or any of those authorities a written notice indicating that they wish to receive invitations to tender for the provision of local services of a description to which the invitation relates.

(4) Such a notice must specify the address to which such an invitation is to be directed, and it shall be sufficient for the purposes of subsection (3)(b) if the authority or authorities send the invitation to the person giving such a notice at the address so specified.

(5) The authority or authorities may only accept a tender submitted by a person who is the holder of either—

(a) a PSV operator’s licence, or

(b) a community bus permit.

(6) But subsection (5)(a) does not include a licence to which a condition is attached under section 26 of the M4 Transport Act 1985 (power of traffic commissioner to attach conditions to licences) prohibiting the holder from using vehicles under the licence to provide local services of all descriptions or of any description to which the invitation relates.

(7) After entering into a quality contract, the authority or authorities must give notice to the traffic commissioner for each traffic area covering the whole or part of the area to which the scheme relates of—

(a) the local services to be provided in accordance with the contract, and

(b) the duration of the contract.

(8) The appropriate national authority may by regulations make provision requiring authorities to publish prescribed information about tenders submitted to them in accordance with this section or about their reasons for entering into particular quality contracts.

Commencement Information

I7 S. 130 partly in force; s. 130 not in force at Royal Assent see s. 275(1)(2); s. 130(8) wholly in force and s. 130(1)-(7) in force for specified purposes (W.) at 1.8.2001 by S.I. 2001/2788, art. 2, Sch. 1 paras. 2, 3; s. 130 in force (E.) at 26.10.2001 by S.I. 2001/3342, art. 2, Sch.

Marginal Citations

M4 1985 c. 67.

131 Exceptions from section 130. E+W

(1) Section 130 does not apply in any case where it appears to the authority or authorities that action is urgently required for the purpose of—

(a) maintaining an existing service,

(b) securing the provision of a service in place of a service which has ceased to operate, or

(c) securing the provision of a service to meet any public transport requirement which has arisen unexpectedly and ought in the opinion of the authority to be met without delay.

(2) The appropriate national authority may by regulations make provision for further exceptions from section 130, including in particular with respect to—

(a) cases in which no tender, or no acceptable tender, is submitted in response to an invitation to tender issued under section 130(1) or under any provision made by virtue of subsection (5)(a), and

(b) agreements of a prescribed description.

(3) The appropriate national authority may make regulations fixing the maximum duration of a quality contract entered into under subsection (1) or under any provision made by virtue of subsection (2).

(4) The appropriate national authority may by regulations make further provision with respect to exceptions from section 130.

(5) Regulations under subsection (4) may in particular—

(a) require authorities to invite tenders for the provision of a service which is the subject of a quality contract made under subsection (1) or under any provision made by virtue of subsection (2), and

(b) require authorities to publish prescribed information (including as to their reasons for entering into particular quality contracts) or to give notices.

Commencement Information

I8 S. 131 partly in force; s. 131 not in force at Royal Assent see s. 275(1)(2); s. 131(2)(3)(4) wholly in force and s. 131(1)(5) in force for specified purposes (W.) at 1.8.2001 by S.I. 2001/2788, art. 2, Sch. 1 paras. 2, 3; s. 131 in force (E.) at 26.10.2001 by S.I. 2001/3342, art. 2, Sch.

[F17 131E Appeals where proposed continuation considered exempt E+W

(1) This section applies where an authority or authorities who propose that a quality contracts scheme should continue in operation (with or without modifications) under section 131A—

(a) decide that the proposal is an exempt continuation proposal, and

(b) acting on the basis of that decision, decide that the scheme should so continue in operation.

(2) Any person falling within subsection (3) may appeal to the Transport Tribunal against—

(a) the decision of the authority or authorities that the proposal is an exempt continuation proposal, or

(b) the decision of the authority or authorities that the scheme is to continue in operation (with or without any modifications).

(3) The persons are—

(a) any person who was consulted under section 125(3) (as it applies by virtue of section 131A in a case where the proposal is an exempt proposal),

(b) any person who was not so consulted, but who, in the opinion of the Transport Tribunal, ought to have been so consulted.

(4) An appeal under this section may be—

(a) on a point of law, or

(b) on a question of fact.

(5) On an appeal under this section the Transport Tribunal shall have power—

(a) to make such order as they think fit, or

(b) to remit any matter (with or without directions) to the authority or authorities for their consideration or determination or for such other purposes as the Tribunal may direct.

(6) The powers of the Tribunal on an appeal under this section include power to do any one or more of the following—

(a) dismiss the appeal in whole or in part,

(b) remit the matter to the authority or authorities with one or more directions under subsection (7),

(c) direct the authority or authorities to vary the scheme, as it continues or is to continue in operation, in such manner as the Tribunal may specify in the direction (but see subsection (8)),

(d) quash the whole or any part of the decision of the authority or authorities (but see subsection (9)).

(7) A direction under this subsection is a direction for the authority or authorities to do each of the following—

(a) consider or reconsider such matters as may be specified in the direction,

(b) as respects those matters, consult or further consult the persons mentioned in section 125(3) as it applies by virtue of section 131A in a case where the proposal is an exempt continuation proposal,

(c) make such variations of the scheme, as it continues or is to continue in operation, as may in consequence appear appropriate to the authority or authorities.

(8) The Tribunal may give a direction under this section to vary a scheme by reducing the area to which it relates only if they are of the opinion that the conditions in section 132(3) are met.

(9) The power of the Tribunal under this section to quash a decision of an authority or authorities that a scheme should continue in operation under section 131A is exercisable only if the Tribunal are of the opinion that there are defects in the scheme which are not capable of being remedied by varying the scheme under or by virtue of subsection (6)(b) or (c).

(10) If, on an appeal under paragraph (a) or (b) of subsection (2), the Tribunal decide that the proposal for the scheme to continue in operation was not an exempt continuation proposal—

(a) they must allow the appeal to that extent,

(b) they must remit the matter to the authority or authorities, with or without directions, and

(c) subsections (11) to (14) have effect.

(11) The directions that the Tribunal may give under this section include—

(a) directions to take any action specified in the directions for the purpose of remedying any failure to comply with requirements of this Part that have effect where a proposal for continuation under section 131A is not an exempt continuation proposal,

(b) directions to make variations specified in the directions for the purpose of securing that the condition in paragraph (a) or (b) of subsection (1) of section 131B (meaning of “exempt continuation proposal”) is met in the case of the scheme,

(c) directions authorising the scheme to continue in operation temporarily, with or without variations, for a period specified or described in the directions, but subject to compliance with conditions as to the time within which any particular action specified in directions under this section is to be taken.

(12) Where the Tribunal give directions falling within subsection (11), they may also make provision in the order dispensing with the need to comply with such procedural requirements imposed by or under this Part as they may specify in the order.

(13) If the scheme or proposed scheme relates to an area in Wales, the Tribunal may not make any order which has the effect of—

(a) giving approval under section 126 as it applies by virtue of section 131D, or

(b) dispensing with the need for any such approval,

but this is without prejudice to the temporary provision that may be made in directions falling within subsection (11)(c).

(14) The appropriate national authority may make regulations with respect to the procedure to be followed in relation to a scheme in cases where the Tribunal decide that the proposal for continuation under section 131A was not an exempt continuation proposal.]

Textual Amendments

F17 S. 131E inserted ( 26.11.2008 for specified purposes, 11.1.2010 for E. in so far as not already in force) by Local Transport Act 2008 (c. 26), ss. 35, 134(1)(c)(4); S.I. 2009/3242, art. 2(1)(a)

132 Variation or revocation of scheme. E+W

(1) The authority or authorities who made the scheme (other than any to whose area the scheme no longer relates) may vary it by—

(a) increasing the area to which it relates (to no greater than the whole of their area or combined area) or adding to the description of local services which are to be provided under quality contracts,

(b) reducing that area or reducing the description of services, or

(c) providing for new exclusions from the scheme or for the variation or revocation of existing exclusions.

(2) The scheme may not be varied under subsection (1)(a) unless the conditions set out in [F18 subsection (1)(a) and (b) of section 124 or those set out in subsection (1A)(a) to (d) of that section] are met with respect to the scheme as varied.

(3) The scheme may not be varied under subsection (1)(b) unless [F19 the relevant conditions] —

(a) are no longer met with respect to it, but

(b) are met with respect to the scheme as varied.

(4) The authority or authorities who made the scheme (other than any to whose area the scheme no longer relates) may revoke the scheme—

(a) if [F20 the relevant conditions] are no longer met with respect to it, or

(b) if they and one or more other authorities make a quality contracts scheme covering the whole or part of the area to which it relates.

[F21 (4A) In subsections (3) and (4) “the relevant conditions” means—

(a) in the case of a scheme made under section 124(1) and not subsequently varied under subsection (1)(a) of this section, the conditions set out in section 124(1)(a) and (b);

(b) in the case of a scheme made under section 124(1A) and not subsequently varied under subsection (1)(a) of this section, the conditions set out in section 124(1A)(a) to (d); and

(c) in the case of a scheme that has been varied under subsection (1)(a) of this section, the conditions by reference to which it was last so varied.]

(5) The variation or revocation of the scheme under subsection (1) or (4)—

(a) requires the approval of the authority which approved the making of the scheme, and

(b) is subject to the same procedure as the making of a scheme, except to the extent that that procedure is modified by regulations made by the appropriate national authority;

and section 130 applies to a varied scheme but subject to regulations so made.

(6) The appropriate national authority may by regulations provide that in prescribed circumstances quality contracts schemes may be revoked by that authority before coming into operation.

Textual Amendments

F18 Words in s. 132(2) substituted (1.12.2006) by Railways Act 2005 (c. 14), ss. 39(4)(a), 60(2); S.I. 2006/2911, art. 2, Sch.

F19 Words in s. 132(3) substituted (1.12.2006) by Railways Act 2005 (c. 14), ss. 39(4)(b), 60(2); S.I. 2006/2911, art. 2, Sch.

F20 Words in s. 132(4) substituted (1.12.2006) by Railways Act 2005 (c. 14), ss. 39(4)(b), 60(2); S.I. 2006/2911, art. 2, Sch.

F21 S. 132(4A) inserted (1.12.2006) by Railways Act 2005 (c. 14), s. 39(4)(c)(5), 60(2); S.I. 2006/2911, art. 2, Sch.

Commencement Information

I9 S. 132 partly in force; s. 132 not in force at Royal Assent see s. 275(1)(2); s. 132(6) wholly in force and s. 132(1)-(5) in force for specified purposes (W.) at 1.8.2001 by S.I. 2001/2788, art. 2, Sch. 1 paras. 2, 3; s. 132 in force (E.) at 26.10.2001 by S.I. 2001/3342, art. 2, Sch.

[F22 132A Appeals where proposed variation considered exempt E+W

(1) This section applies where an authority or authorities who propose to vary a quality contracts scheme under section 132—

(a) decide that the proposal is an exempt variation for the purposes of that section, and

(b) acting on the basis of that decision, decide to vary the scheme under that section.

(2) Any person falling within subsection (3) may appeal to the Transport Tribunal against—

(a) the decision of the authority or authorities that the variation is an exempt variation for the purposes of section 132, or

(b) the decision of the authority or authorities as to the variation of the scheme under that section.

(3) The persons are—

(a) any person who was consulted under section 125(3) (as it applies by virtue of subsection (8) or, as the case may be, (9)(b) of section 132 in a case where the variation is an exempt variation for the purposes of section 132),

(b) any person who was not so consulted, but who, in the opinion of the Transport Tribunal, ought to have been so consulted.

(4) An appeal under this section may be—

(a) on a point of law, or

(b) on a question of fact.

(5) On an appeal under this section the Transport Tribunal shall have power—

(a) to make such order as they think fit, or

(b) to remit any matter (with or without directions) to the authority or authorities for their consideration or determination or for such other purposes as the Tribunal may direct.

(6) The powers of the Tribunal on an appeal under this section include power to do any one or more of the following—

(a) dismiss the appeal in whole or in part,

(b) remit the matter to the authority or authorities with one or more directions under subsection (7),

(c) direct the authority or authorities to vary the scheme, to the extent of the variation made by the authority or authorities, in such manner as the Tribunal may specify in the direction (but see subsection (8)),

(d) quash the whole or any part of the decision of the authority or authorities.

(7) A direction under this subsection is a direction for the authority or authorities to do each of the following—

(a) consider or reconsider such matters as may be specified in the direction,

(b) as respects those matters, consult or further consult the persons mentioned in section 125(3) (as it applies by virtue of subsection (8) or, as the case may be, (9)(b) of section 132 in a case where the variation is an exempt variation for the purposes of section 132),

(c) make such variations of the scheme as may in consequence appear appropriate to the authority or authorities.

(8) The Tribunal may give a direction under this section to vary a scheme by reducing the area to which the scheme relates only if they are of the opinion that the conditions in section 132(3) are met.

(9) If, on an appeal under paragraph (a) or (b) of subsection (2), the Tribunal decide that the variation was not an exempt variation for the purposes of section 132—

(a) they must allow the appeal to that extent,

(b) they must remit the matter to the authority or authorities, with or without directions, and

(c) subsections (10) to (13) have effect.

(10) The directions that the Tribunal may give under this section include—

(a) directions to take any action specified in the directions for the purpose of remedying any failure to comply with requirements of this Part that have effect where a proposed variation under section 132 is not an exempt variation,

(b) directions to make variations specified in the directions for the purpose of securing that the condition in paragraph (a), (b) or (c) of section 132(11) (meaning of “exempt variation”) is met in the case of the variation,

(c) directions authorising the scheme to continue in operation temporarily, with or without variations, for a period specified or described in the directions, but subject to compliance with conditions as to the time within which any particular action specified in directions under this section is to be taken.

(11) Where the Tribunal give directions falling within subsection (10), they may also make provision in the order dispensing with the need to comply with such procedural requirements imposed by or under this Part as they may specify in the order.

(12) If the scheme or proposed scheme relates to an area in Wales, the Tribunal may not make any order which has the effect of—

(a) giving approval under section 126 as it applies by virtue of section 132, or

(b) dispensing with the need for any such approval,

but this is without prejudice to the temporary provision that may be made in directions falling within subsection (10)(c).

(13) The appropriate national authority may make regulations with respect to the procedure to be followed in cases where the Tribunal decide that the variation or proposed variation was not an exempt variation for the purposes of section 132.]

Textual Amendments

F22 S. 132A inserted (26.11.2008 for specified purposes, 11.1.2010 for E. in so far as not already in force) by Local Transport Act 2008 (c. 26), ss. 38, 134(1)(c)(4); S.I. 2009/3242, art. 2(1)(a)

133 Regulations about schemes. E+W

(1) The appropriate national authority may by regulations make further provision with respect to—

(a) the procedure to be followed when making, varying or revoking quality contracts schemes,

(b) the approval of schemes,

(c) the local services or classes of local services which are to be, or may be, excluded from schemes,

(d) the conditions which must be, or may be, attached to such exclusions, and

(e) such other incidental matters in connection with quality contracts schemes as the appropriate national authority thinks fit.

(2) The regulations may in particular make provision with respect to—

(a) giving notice of proposed schemes or proposed variations or revocation of schemes,

(b) objections to such proposals,

(c) the holding of inquiries or hearings into objections,

(d) modifications of such proposals,

(e) the form and manner of applications for approval of such proposals,

(f) the form of schemes or variations, and

(g) giving notice of schemes which have been made or of the variation or revocation of schemes.

[F23 (3) The appropriate national authority may also make regulations modifying or excluding the application of provisions of this Part, so far as relating to quality contracts schemes, in cases where a local transport authority, or two or more local transport authorities acting jointly, do any of the following—

(a) by virtue of section 126C(6), send to a QCS board a further request under section 126C(4) and modified proposals under section 126C(5),

(b) propose or decide that a scheme should continue in operation (with or without modification) under section 131A,

(c) propose or decide to vary or revoke a scheme under section 132.

(4) Regulations made by virtue of subsection (3) must not exclude any requirement for the authority or authorities—

(a) under section 126, to obtain the approval of the Welsh Ministers,

(b) under section 127(1A), to publish their response to the report of the QCS board.]

Textual Amendments

F23 S. 133(3)(4) inserted (26.11.2008 for specified purposes, 11.1.2010 for E. in so far as not already in force) by Local Transport Act 2008 (c. 26), ss. 41(6), 134(1)(c)(4); S.I. 2009/3242, art. 2(1)(a)

Commencement Information

I10 S. 133 wholly in force at 26.10.2001; s. 133 not in force at Royal Assent see s. 275(1)(2); s. 133 in force (W.) at 1.8.2001 by S.I. 2001/2788, art. 2, Sch. 1 para. 2; s. 133 in force (E.) at 26.10.2001 by S.I. 2001/3342, art. 2, Sch.

134 Transitional provision about schemes. E+W

(1) The appropriate national authority may by regulations make such transitional provision as it considers appropriate in connection with—

(a) the coming into operation of quality contracts schemes,

(b) the variation of such schemes, and

(c) the ending of such schemes (whether or not as a result of their revocation).

(2) The regulations may in particular provide that in prescribed circumstances—

(a) any provision of sections 6 to 9 of the M5 Transport Act 1985 (registration of local services) which would otherwise have effect is not to have effect or is to have effect with such modifications as may be prescribed, or

(b) any such provision which would not otherwise have effect is to have effect or is to have effect with such modifications as may be prescribed,

in relation to the whole or any part of the area to which the scheme relates.

[F24 (3) Any regulations made by virtue of paragraph (a) of subsection (1) are not to have effect in the case of any quality contracts scheme as respects any time before the making of the scheme.]

Textual Amendments

F24 S. 134(3) inserted (26.11.2008 for specified purposes, 11.1.2010 for E. in so far as not already in force) by Local Transport Act 2008 (c. 26), ss. 42(5), 134(1)(c)(4); S.I. 2009/3242, art. 2(1)(a)

Commencement Information

I11 S. 134 wholly in force at 26.10.2001; s. 134 not in force at Royal Assent see s. 275(1)(2); s. 134 in force (W.) at 1.8.2001 by S.I. 2001/2788, art. 2, Sch. 1 para. 2; s. 134 in force (E.) at 26.10.2001 by S.I. 2001/3342, art. 2, Sch.

Marginal Citations

M5 1985 c. 67.

[F25 134B Quality contracts: application of TUPE E+W

(1) Subsection (3) applies to a situation in which—

(a) on the coming into force of a quality contract, local services cease to be provided by a person (the “former operator”) in the area to which the relevant quality contracts scheme, or (in the case of a scheme which provides for different provisions to come into operation on different dates) the relevant provision of the scheme, relates, in accordance with section 129(1)(b), and

(b) at the same time, a person (the “new operator”) begins to provide local services in that area under that quality contract.

(2) Subsection (3) also applies to a situation in which—

(a) local services which, on the coming into force of a quality contract, a person (the “former operator”) would be required by virtue of section 129(1)(b) to cease providing in the area mentioned in subsection (1)(a) of this section, cease to be provided by the former operator before the coming into force of that quality contract, and

(b) at the same time, a person (the “new operator”) begins to provide local services in that area under an agreement which the authority or authorities who made the relevant quality contracts scheme entered into by reason of the cessation of the local services referred to in paragraph (a).

(3) Any situation to which this subsection applies is to be treated as a relevant transfer for the purposes of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) (whether or not TUPE would apply apart from this subsection).

(4) For the purposes of TUPE, the organised grouping of employees that is subject to the relevant transfer consists of those employees of the former operator whose employment is principally connected with the provision of the local services referred to in subsection (1)(a) or (as the case may be) the local services referred to in subsection (2)(a).

(5) Any situation which by virtue of this section is treated as a relevant transfer for the purposes of TUPE is also to be treated as a relevant transfer within the meaning of TUPE for the purposes of sections 257 and 258 of the Pensions Act 2004 and any regulations made under section 258 of that Act.

(6) The Secretary of State may make regulations supplementing the provision made by this section.

(7) The provision that may be made by regulations under subsection (6) includes—

(a) provision for determining, for the purposes of subsection (4), whether a person's employment is principally connected with the provision of any particular local services (including provision for or in connection with the appointment of a person to make such determination);

(b) provision for determining, in the case of any particular organised grouping of employees, the particular new operator who is to be the transferee for the purposes of TUPE (including provision for or in connection with the appointment of a person to make such determination);

(c) provision requiring any person operating local services in the area to which a quality contracts scheme relates to provide the authority or authorities who made the scheme with such information as may be prescribed, at such time as may be prescribed, about such of that person's employees as would fall within subsection (4) if the person ceased to provide those services in the circumstances described in subsection (1)(a);

(d) provision requiring the authority or authorities who made a quality contracts scheme to provide all persons operating local services in the area to which the scheme relates with such information as may be prescribed, at such time as may be prescribed, so as to enable such persons to comply with any requirement imposed by virtue of paragraph (c) of this subsection;

(e) provision requiring the authority or authorities who made a quality contracts scheme to ensure that any quality contract entered into with a person under the scheme, or any other agreement made with a person for the provision of local services in the area to which the scheme relates, is made on terms—

(i) that require the person, in the event of there being any transferring employees, to secure pension protection for every transferring employee, or every transferring employee of a prescribed description, who as an employee of the former operator had rights to acquire pension benefits, and

(ii) that, so far as relating to the securing of pension protection for a transferring employee, are enforceable by the employee.

(8) For the purposes of this section—

(a) “transferring employee” means an employee of a former operator whose contract of employment becomes, either by virtue of TUPE or by virtue of this section, a contract of employment with a new operator;

(b) “pension protection” is secured for a transferring employee if after the change of employer referred to in paragraph (a)—

(i) the employee has, as an employee of the new operator, rights to acquire pension benefits, and

(ii) those rights are of such description as is prescribed by regulations.

(9) The Secretary of State must exercise the power conferred by this section to make regulations containing provision falling within subsection (7)(e) so as to ensure—

(a) that pension protection is required to be secured for every transferring original employee who, as an employee of the original operator, had rights to acquire pension benefits, and

(b) that the rights to acquire pension benefits which a transferring original employee has as an employee of the new operator by virtue of paragraph (a) are rights which—

(i) are the same as the rights the transferring original employee had as an employee of the original operator, or

(ii) under provision made by regulations, count as being broadly comparable to, or better than, those rights.

(10) For the purposes of subsection (9)—

• “transferring original employee” means a transferring employee—

  (a)

  who immediately before the relevant date was employed by a person (the “original operator”) providing local services in the area to which the relevant quality contracts scheme relates, and

  (b)

  whose contract of employment—

  (i)

  was, from that date until the change of employer referred to in subsection (8)(a), a contract of employment with the original operator, or

  (ii)

  on each occasion when the employee was subject to a relevant transfer became, either by virtue of TUPE or by virtue of this section, a contract of employment with a person providing local services in the area referred to in paragraph (a);

• “relevant date”, in relation to a quality contracts scheme, means—

  (a)

  the date on which the scheme was made, or

  (b)

  where—

  (i)

  the local services being provided by the original operator were not subject to the scheme when it was made, and

  (ii)

  as a result of either the variation of the scheme, or the continuation of the scheme with modifications, those services became subject to the scheme,

  the date on which that variation, or (as the case may be) the decision to continue the scheme with those modifications, was made;

• “relevant transfer” means anything that is, or is to be treated as, a relevant transfer for the purposes of TUPE.

(11) A person is guilty of an offence under this subsection if—

(a) the person provides information in accordance with a requirement imposed by virtue of subsection (7)(c),

(b) the information is false or misleading in a material particular, and

(c) the person knows that it is or is reckless as to whether it is.

(12) A person who is guilty of an offence under subsection (11) is liable on summary conviction to a fine not exceeding level 4 on the standard scale.]

Textual Amendments

F25 S. 134B inserted (26.11.2008 for specified purposes, 11.1.2010 for E. in so far as not already in force) by Local Transport Act 2008 (c. 26), ss. 44(1), 134(1)(c)(4); S.I. 2009/3242, art. 2(1)(a)