(1)The Assembly may direct two or more local authorities in Wales to enter into arrangements—
(a)in the terms specified in the direction, and
(b)in relation to the discharge of transport functions specified in the direction.
(2)The arrangements may in particular be or include arrangements for the joint discharge of transport functions.
(3)In deciding whether to give a direction under this section in relation to particular functions, the Assembly must in particular have regard to the interests of economy, efficiency and effectiveness in the discharge of the functions.
(4)The Assembly may vary or revoke a direction given under this section in relation to particular functions by a further such direction, but only if it is satisfied that, on variation or revocation, satisfactory arrangements will be in place for the discharge of those functions.
(5)Before giving, varying or revoking a direction under this section the Assembly must consult the local authorities concerned and any other persons it considers appropriate.
(6)“Transport function” means a function of a local authority in Wales relating to transport.