The Service Subsidy Agreements (Tendering) (Amendment) Regulations 1989

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Service Subsidy Agreements (Tendering) Regulations 1985 (“the 1985 Regulations”) so that:–

(a) the exception from the tendering requirements set out in section 89 of the Transport Act 1985 of service subsidy agreements under which the aggregate amount of the service subsidies payable is “less than £4,000” is amended so that the threshold is “less then £8,000”; and

(b) the exception is excluded in the case of agreements–

(i) whose effect is to provide for the operator to receive under service subsidy agreements an aggregate amount of service subsidies of “more than £40,000” (as opposed to “more than £20,000” in the 1985 Regulations); and

(ii) whose effect is to modify agreements so that the aggregate amount of service subsidies payable becomes “£8,000 or more” (as opposed to “£4,000 or more” in the 1985 Regulations).