3(1)Section 10(1) (general powers of Passenger Transport Executives) is amended as follows.
(2)In paragraph (vi), for the words from “the Railways Board” to “may be)” substitute “the Strategic Rail Authority or any wholly-owned subsidiary of the Strategic Rail Authority in respect of railway passenger services provided”.
(3)After that paragraph insert—
“(viza) to enter into agreements with the Strategic Rail Authority under which the Executive make payments to the Strategic Rail Authority in respect of the cost incurred by it in securing the provision of a bus substitution service (within the meaning of the [1993 c. 43.] Railways Act 1993) between places in that area or between such places and places outside that area but within the permitted distance for the purposes of paragraph (ii) of this subsection;”.