Part II Local transport

Bus services: quality contracts schemes

124 Quality contracts schemes.

(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—

F1(a)

the proposed scheme will result in an increase in the use of bus services (see subsection (9B)) in the area to which the proposed scheme relates,

F1(b)

the proposed scheme will bring benefits to persons using local services in the area to which the proposed scheme relates, by improving the quality of those services,

F1(c)

the proposed scheme will contribute to the implementation of the local transport policies of the authority or authorities,

F1(d)

the proposed scheme will contribute to the implementation of those policies in a way which is economic, efficient and effective, and

F1(e)

any adverse effects of the proposed scheme on operators will be proportionate to the improvement in the well-being of persons living or working in the area to which the proposed scheme relates and, in particular, to the achievement of the objectives mentioned in paragraphs (a) to (d).

F2(1A)

F3An Integrated Transport Authority F4or combined authority, or F5an Integrated Transport Authority F4or combined 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 F6local transport policies of F7the Integrated Transport Authority F8or the combined 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 F9Integrated Transport Authority F10or combined authority, or one of the F11Integrated Transport Authorities F12or combined 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.

F13(2)

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

(a)

have complied with the requirements of section 125,

(b)

in the case of a scheme for an area in Wales, have obtained the approval of the Welsh Ministers in accordance with section 126, and

(c)

in the case of a scheme for an area in England, meet the requirements of subsection (2A).

F13(2A)

The requirements are that the authority or authorities—

(a)

have published under section 126C(5) the request which they sent to the QCS board under section 126C(4), and

(b)

publish, in accordance with section 127(1A), a response prepared by them to the report published by the QCS board under section 126D(5) in relation to the scheme.

(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) F14and section 132C).

(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 M1Transport 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.

F15(9A)

The power to make a scheme jointly may be exercised only if—

(a)

all the authorities are local transport authorities for areas in England, or

(b)

all the authorities are local transport authorities for areas in Wales.

F16(9B)

The reference in subsection (1)(a) to increasing the use of bus services includes a reference to reducing, arresting or reversing decline in the use of bus services.

F17F18(10)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11)

In this section “relevant railway service”—

(a)

in relation to a scheme made by a single F19Integrated Transport Authority F20 or combined 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 F21an Integrated Transport Authority F20 or combined authority who join in making the scheme;

(ii)

a railway passenger service operating wholly or primarily within the combined area of two or more F22Integrated Transport Authorities F23or combined 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.