Transport Act 1985

89 Obligation to invite tenders for subsidised services.E+W

[F1(1)Subject to sections 90 and 91 of this Act, an authority responsible for expenditure on public passenger transport services may not enter into an agreement providing for service subsidies under which a local service is to be provided except by accepting a tender invited in pursuance of this section.

(2)Where any such authority propose to secure the provision of any local service by entering into any such agreement, the authority shall invite tenders for the provision of that service for such period and on such basis as may be specified in the invitation to tender.

(3)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)Subject to subsection (5) below, any such invitation—

(a)must be issued generally, in such manner as the authority issuing the invitation consider appropriate for bringing it to the attention of persons who may be interested; and

(b)must also be issued individually to all persons who have given to that authority a written notice indicating that they wish to receive invitations to tender for the provision of local services for that authority’s area or (as the case may be) for the provision of such services of any description to which the invitation relates.

(5)Any such notice shall specify the address to which any such invitation is to be directed, and it shall be sufficient for the purposes of subsection (4)(b) above if the authority send the invitation to the person giving any such notice at the address so specified.

(6)An authority issuing an invitation to tender under this section shall not accept any tender submitted by a person who is not the holder of either—

(a)a PSV operator’s licence, not being—

F3(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)a licence to which any condition is attached under section 26 of this Act prohibiting the holder from using vehicles under the licence to provide local services of all descriptions or (as the case may be) of any description to which the invitation relates; or

(b)a permit under section 22 of this Act.

[F4(7)An authority issuing an invitation to tender under this section shall, in determining whether to accept a tender submitted in response to the invitation or which (if any) of several such tenders to accept, have regard in particular to—

(a)a combination of economy, efficiency and effectiveness;

(b)the implementation of the policies set out in the appropriate bus strategy; and

(c)the reduction or limitation of traffic congestion, noise or air pollution.

F4(8)In subsection (7)(b) above “the appropriate bus strategy” means—

(a)in the case of a local transport authority (within the meaning of section 108(4) of the Transport Act 2000), their bus strategy;

(b)in the case of a district council which is not such an authority, the bus strategy of the council for the county in which the district is situated; and

(c)in the case of a Passenger Transport Executive for a passenger transport area, the bus strategy made jointly by the Passenger Transport Authority for the area and the councils for the metropolitan districts comprised in the area.]]