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(1)Section 10 of the TA 1968 (powers of Passenger Transport Executives) is amended as follows.
(2)For subsection (1)(viii) (power to let passenger vehicles on hire) substitute—
“(viii)to let passenger vehicles on hire (with or without trailers for the carriage of goods)—
(a)as part of, or in connection with, an agreement providing for service subsidies, to an operator of public passenger transport services within the meaning of section 9A;
(b)to a body holding a permit granted under section 19 of the Transport Act 1985 (permits in relation to the use of vehicles by educational and other bodies);”.
(3)After subsection (2) insert—
“(2A)The reference in subsection (1)(viii) above to an agreement providing for service subsidies includes—
(a)an agreement for such subsidies under section 9A(4) above;
(b)provision included in a quality contract under section 124 of the Transport Act 2000 for the making of payments by the PTE (see subsection (5)(a) of that section).”.
(4)Any order made under section 60(5) of the TA 1985 shall cease to have effect to the extent that it provides that a PTE shall cease to have the power under section 10(1)(viii) of the TA 1968.
(5)In section 60 of the TA 1985 (exclusion of public sector co-operation requirements and bus operating powers), omit subsections (2) to (4), (7) and (8).
(6)The following provisions of the TA 1968 shall cease to have effect—
(a)section 10(1)(i) (power of PTE to carry passengers by road);
(b)section 24 (establishment and general duties of Bus Company and Scottish Group).
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