Transport Act 1968

Reorganisation of passenger transport in Passenger Transport Areas

17Transfer to Executive of local authority transport undertakings

(1)In the case of each designated area the Minister shall by order make provision—

(a)with respect to any of the councils of constituent areas in the case of whom, on such date as may be appointed by the order, either—

(i)the council are carrying on, or are a member of some other body which is carrying on, an undertaking which either is at that date a road passenger transport, ferry or railway undertaking or was on the identifying date (that is to say, 8th December 1967 or a date five years before the date of the making of the order, whichever is the later) comprised in such an undertaking; or

(ii)any of the members of any such other body fall to be appointed by the council,

for the transfer on the date so appointed to the Executive from that council of all interests of that council in such fixed or movable property, and of all such rights and liabilities of that council, as may be determined by or under the order, being property, rights and liabilities which are on the date so appointed, or have at any time since the identifying date been, property used, rights enjoyed or liabilities incurred for or in connection with the purposes of that undertaking ;

(b)for the transfer to the Executive (subject to paragraph 11(c) of Part III of Schedule 5 to this Act) of all property, rights and liabilities of, and for the dissolution of, any such other body as aforesaid which may be specified in the order, being a body in the case of which in consequence of provision made under paragraph (a) of this subsection no person other than the Executive or persons appointed by the Executive are entitled to be or become members ;

(c)for the transfer to the Executive from any of the councils of constituent areas or any body specified for the purposes of paragraph (b) of this subsection of all such powers and duties as may be determined by or under the order, being powers or duties conferred or imposed on that council or body by or under any Act for the purposes of or in connection with any such undertaking as is referred to in paragraph (a) of this subsection;

(d)for the transfer to the service of the Executive of all such persons as may be determined by or under the order, being persons who immediately before the date appointed as aforesaid are employed by any of the councils of constituent areas or any body specified for the purposes of paragraph (b) of this subsection and who either are on that date or were on the identifying date aforesaid so employed in connection with any such undertaking as is referred to in paragraph (a) of this subsection;

(e)for the protection of the interests of persons transferred by the order to the service of the Executive.

(2)Any order under subsection (1) of this section may contain such supplementary, incidental and consequential provision as the Minister thinks necessary or expedient for the purposes of the order, and in particular, but without prejudice to the generality of the foregoing provisions of this subsection, may include provision—

(a)for the assumption by any council such as is mentioned in subsection (1)(a)(i) of this section and by the Executive of such liabilities to one another as may be determined by or under the order to be appropriate having regard to the financial arrangements of that council before the severance of the undertaking so mentioned from the other activities of that council;

(b)for—

(i)the exclusion from transfer to, or the disclaimer by, the Executive of any property acquired or contract entered into for the purposes of any undertaking affected by the order or any variation made in such a contract; or

(ii)the resumption by the Executive of any property, rights or liabilities formerly included in any such undertaking which have been disposed of before the transfer date ; or

(iii)the resumption by the Executive of any interests in property, rights and liabilities of any of the councils of constituent areas, being property used, rights enjoyed or liabilities incurred for or in connection with the purposes of a road passenger transport, ferry or railway undertaking to which subsection (1)(a) of this section would have applied but for a disposal of the undertaking before the date appointed under the said subsection (1)(a), and whether before or after the making of the order,

if the acquisition of that property, the making of that contract or variation, or that disposal, took place after such date as may be specified in the order, not being earlier than the identifying date referred to in the said subsection (1)(a), and was not reasonably necessary or expedient for the purposes of the undertaking or was an act of unreasonable imprudence on the part of the person carrying on the undertaking;

(c)for the payment by such of the councils of constituent areas as are concerned of compensation to any person from whom any property, rights and liabilities are resumed by the Executive by virtue of paragraph (b)(ii) or (iii) of this subsection ;

(d)for the settlement by a court or otherwise of any dispute or other matter arising in connection with the order;

(e)for securing that any undertaking affected by the order is properly carried on and maintained pending any relevant transfer under the order ;

(f)for making in any Act, or in any instrument made under an Act, being an Act or instrument relating to, or to a class of undertakings which includes, any undertaking affected by the order, such modifications or repeals as may appear to the Minister to be required in consequence of any transfer under the order;

(g)for the making by the Executive to any council such as is mentioned in subsection (1)(a)(i) of this section of payments by way of contributions to the cost of any adjustments arising from the severance of the undertaking so mentioned from the other activities of that council.

(3)Section 1(1) to (5) of the [1960 c. 15.] Water Officers Compensation Act 1960 (which relates to compensation for loss of employment, etc., attributable to certain orders) shall apply to an order under subsection (1) of this section as it applies to the orders referred to in subsection (1) of that section but as if the definition of " the appropriate Minister " in subsection (4) of that section were omitted and for any other reference in that section to the appropriate Minister there were substituted a reference to the Minister; and the Minister shall exercise as respects any order under subsection (1) of this section the power to make regulations conferred by the said section 1 as applied by this subsection.

(4)Before making an order under subsection (1) of this section with respect to any designated area the Minister shall consult with any such councils of constituent areas as are referred to in paragraph (a), and any such other bodies as are referred to in paragraph (b), of that subsection; and those councils or bodies shall furnish the Minister with such information as he may reasonably require for the purpose of making the order.

(5)Subject to subsection (6) of this section, any property or interests in property, rights and liabilities for the transfer of which provision is made by an order under subsection (1) of this section shall on the date appointed for the purpose by the order be transferred, and by virtue of this Act vest, in accordance with the order.

(6)Schedule 4 to this Act shall apply to any transfer under subsection (5) of this section and that subsection shall have effect subject to the provisions of that Schedule ; but—

(a)for the purposes of an order under subsection (1) of this section with respect to an area in Scotland or Wales, any reference in that Schedule to the Minister shall be construed as a reference to the Secretary of State;

(b)any order under the said subsection (1) may make modifications in that Schedule for the purposes of its application to a transfer effected by that order.

18Planning of passenger transport services in designated areas

(1)Within twelve months or such longer period as the Minister may allow from the date of the establishment of the Authority for a designated area, the Authority and the Executive shall jointly prepare, and the Authority shall cause to be published in such manner as appears to them appropriate for informing persons appearing to them to be likely to be concerned, a statement setting out in general terms the policies which the Authority and the Executive intend to follow, and any action they have taken or propose to take, with a view to the discharge of their duties under section 9(3) of this Act, and that statement shall in particular deal with the following matters, that is to say—

(a)the organisation, and any proposals for the further development, of the Executive's own undertaking so far as it relates to the provision of passenger transport services within, to and from that area;

(b)any proposals for the organisation of undertakings transferred to the Executive under section 17 of this Act as subsidiaries of the Executive, and any proposals for associating with the direction of any such subsidiary persons appointed from among members of the councils of the constituent areas in which that subsidiary operates;

(c)the nature of any agreements which the Executive have made or propose to make with, or with any subsidiary of, the Bus Company or Scottish Group for the provision of bus services within, to and from that area, and the extent to which the Executive have made or propose to make such agreements with any other person who is providing such bus services;

(d)if the area is an area to which section 20 of this Act applies, any steps taken or proposed to be taken by the Executive for the purpose of discharging their special duty under subsection (2) of that section ;

(e)if the area is not an area to which the said section 20 applies, any proposed exercise by the Executive of their powers under section 10(1)(vi) or (xv) of this Act with a view to securing the provision of railway passenger services required to meet the needs of the area;

(f)the financial position and prospects of the Executive;

(g)the steps taken by the Executive to comply with the requirements of section 137 of this Act;

(h)the state of preparation of the plan required by subsection (2) of this section;

(j)the machinery for securing co-ordination between—

(i)the planning and operation of the road passenger transport services to be provided by the Executive or subsidiaries of theirs, or in pursuance of agreements with the Executive, or with the consent of the Executive granted under Schedule 6 to this Act; and

(ii)the preparation and execution by the councils of constituent areas of any plans and policies of those councils with respect to traffic regulation or parking;

and the Authority shall send a copy of the statement prepared by them and the Executive under this subsection to the Minister and to each of the councils of constituent areas.

(2)Not later than two years or such longer period as the Minister may allow from the date of the establishment of the Executive for a designated area, the Executive shall prepare, and the Authority shall cause to be published in such manner as appears to them appropriate for informing persons appearing to them to be concerned, a plan approved by the Authority describing the proposals of the Executive for the future development of the passenger transport system to be provided for the area in the discharge of the Executive's duty under section 9(3) of this Act; and in preparing that plan the Executive shall have regard to any exercise or proposed exercise by a local planning authority of any of their functions in connection with the development of, or of any area in the vicinity of, the Executive's designated area or any part thereof; and the Executive shall send a copy of the plan prepared by them under this subsection to the Minister and to each of the councils of constituent areas.

(3)On causing the statement under subsection (1) or the plan under subsection (2) of this section to be published, the Authority shall also cause to be published in the London Gazette or, in the case of an Authority in Scotland, in the Edinburgh Gazette, and, in either case, in one or more newspapers circulating in their area, notice of the publication of the statement or plan; and that notice shall include particulars of a place at which and the days on which that statement or plan will be available at all reasonable hours for inspection by any member of the public and of the manner in which further copies of that statement or plan can be purchased or otherwise obtained.

19Transfer of control of bus services to Executive

(1)At any time after the Minister has received from the Authority for a designated area a copy of the statement prepared by that Authority and the Executive for that area under section 18(1) of this Act, the Minister may by order direct that this section shall apply to that area as from such date as may be appointed by the order.

(2)As from the date appointed in relation to any area under subsection (1) of this section, no person other than the Executive or a subsidiary of theirs shall provide an area bus service in that area except in pursuance of an agreement with the Executive or, in the case of an existing service within the meaning of Schedule 6 to this Act, with the consent of the Executive granted under that Schedule; but in the case of a service part only of which is operated as an area bus service in that area any provision with respect to the carriage of passengers other than those who are both taken up and set down in that area which is contained in any such agreement shall be of no effect if or so far as it is inconsistent with any condition for the time being attached to any road service licence under which the service is provided.

(3)Notwithstanding anything in Part III of the Act of 1960—

(a)no road service licence shall be required for the provision of any bus service operated wholly within an area to which this section applies ; and

(b)where such a licence is granted in respect of a bus service operated in part as an area bus service in such an area, no condition shall be attached to the licence with respect to the carriage of passengers who are both taken up and set down in that area;

and, on the day on which this section first applies to any particular designated area, any such licence in force immediately before that date, if or so far as that licence relates to the operation of an area bus service in that area, and any condition attached to such a licence, if or so far as that condition relates to the carriage of passengers who are both taken up and set down in that area, shall cease to have effect.

(4)If any person provides a bus service in contravention of subsection (2) of this section, he shall be liable on summary conviction to a fine not exceeding £200; but in England or Wales proceedings for an offence under this subsection shall not be instituted except by or on behalf of the Director of Public Prosecutions, or by or with the authority of the Executive for a designated area or a chief officer of police.

20Special duty of certain Executives with respect to railway passenger services

(1)If in the case of any designated area the Minister considers that railway passenger services have a particularly important contribution to make to the provision of a properly integrated and efficient system of public passenger transport for that area, he may by order direct that this section shall apply to that area.

(2)Without prejudice to their general duty under section 9(3) of this Act, it shall be the special duty of the Executive for a designated area to which this section applies—

(a)to review as soon as may be, and subsequently keep under review, the railway passenger services provided by the Railways Board for meeting the needs of persons travelling between places in that area or between such places and places outside that area but within the permitted distance for the purposes of section 10(1)(ii) of this Act as it applies to that Executive ; and

(b)without prejudice to the general powers of the Executive under section 10 of this Act, to enter into such agreements with that Board as the Authority may approve for securing that the Board provide such railway passenger services as the Authority decide to be necessary to ensure that such services make a proper contribution towards the provision for that area of such a system of public passenger transport as is referred to in section 9(1) of this Act.

(3)The Railways Board shall furnish the Executive with any information which the Executive may reasonably require for the purposes of the discharge of their functions under subsection (2) of this section.

(4)Without prejudice to the general power of the Executive under section 10(1)(vi) of this Act, any agreement under this section may include provision for the making of payments by the Executive to the Railways Board in respect of the railway passenger services provided by the Board in pursuance of the agreement.

(5)Before entering into any agreement under this section, the Executive shall send a copy of the proposed agreement to the Minister; but a failure to comply with this subsection shall not affect the validity of the agreement.

(6)If any dispute arises between the Executive and the Railways Board in connection with the provisions of subsection (2) or (3) of this section, either of them may require the dispute to be referred to the Minister for determination, and any agreement under the said subsection (2) may include provision for any dispute in connection with the agreement to be so referred; and where any dispute is referred to the Minister under or by virtue of this subsection, then, subject to subsection (7) of this section, the Minister may give such directions to the Executive and the Board with respect to the dispute as he thinks fit.

(7)Before giving any directions under subsection (6) of this section to the Executive for a designated area in Scotland or Wales the Minister shall consult with the Secretary of State.

(8)The Minister may, with the approval of the Treasury and if in any particular case he considers it proper so to do, make grants to the Executive for any designated area to which this section applies towards any expenditure incurred by the Executive by reason of any agreement entered into under subsection (2)(b) of this section; but—

(a)such grants shall be made only in respect of a period falling within the first seven years (or such greater number of years as the Minister may with the approval of the Treasury by order prescribe) from the date fixed for the establishment of that Executive by order under section 9(1) of this Act or the date of the order under subsection (1) of this section applying this section to that designated area, whichever is the later; and

(b)in the case of any of those years after the first, the percentage of the aggregate amount of any expenditure incurred as aforesaid in that year represented by any grant in respect of that year shall be less than it was or would have been in the case of the last preceding of those years.

21Provisions as to functions of traffic commissioners in connection with designated areas

(1)The persons whose representations traffic commissioners are required by section 135(2) of the Act of 1960 to take into consideration in exercising their discretion to grant or back or to refuse a road service licence in respect of any route and their discretion to attach conditions thereto shall include—

(a)if that route or any part thereof is situated in a designated area, the Executive for that area; and

(b)if the Railways Board are providing railway passenger transport facilities along or near to that route or any part thereof in pursuance of an agreement with the Executive for any designated area, that Executive,

and, if the licence is granted or backed, subsections (2) and (3) of section 143 of that Act (which confer rights of appeal to the Minister on certain authorities and persons who have made representations or objections to the traffic commissioners in connection with the licence) shall apply to such an Executive as aforesaid as they apply to the authorities and persons mentioned in paragraphs (a) and (b) of the said subsection (2) or (3).

(2)If, in the case of any road passenger transport service provided within a designated area to which section 19 of this Act applies, any dispute arises between any of the following persons, namely, the Executive for that area, the person providing that service, and any other person providing road passenger transport services within or to and from that area, as to whether that service is or is not an excursion or tour, that dispute shall, if any party thereto so requests, be referred for determination to the chairman of any appropriate traffic commissioners, whose decision shall be final.

(3)In any proceedings with respect to such a service as is mentioned in subsection (2) of this section, a certificate of the chairman of any appropriate traffic commissioners that the service is an excursion or tour for which a road service licence is required shall be conclusive evidence of that fact, and any document purporting to be such a certificate shall be accepted in evidence without further proof.

(4)Any agreement made for the purposes of section 19(2) of this Act may contain provision for referring any difference arising between the parties thereto for determination by the chairman of any appropriate traffic commissioners.

(5)The Minister may by regulations make provision with respect to the procedure to be followed in connection with any functions conferred on traffic commissioners or their chairman by this section or Schedule 6 to this Act and for prescribing anything required by that Schedule to be prescribed; and the regulations may include—

(a)provision requiring the Executive for a designated area to furnish the appropriate traffic commissioners with information as to the road passenger transport services provided—

(i)by the Executive or any subsidiary of theirs; or

(ii)in pursuance of agreements with the Executive ; or

(iii)with the consent of the Executive granted under Schedule 6 to this Act;

(b)provision authorising the charging of fees in connection with the functions aforesaid of any traffic commissioners or their chairman and as to the person by whom any such fee is to be paid;

and any amount received by any traffic commissioners or their chairman by way of fees under the regulations shall be paid into the Consolidated Fund in such manner as the Treasury may direct.

(6)In this section, the expression "appropriate traffic commissioners " means traffic commissioners for an area which includes the designated area or part of a designated area in which the road passenger transport service in question is provided, and references to the chairman of any traffic commissioners include references to any person for the time being appointed to act as his deputy.